Airlines operators shouldn’t lament high insurance premium –Daniel

Insurance premium for airline operators in Nigeria is among the lowest in the world, the Commissioner for Insurance, Mr. Fola Daniel, has said.

Speaking in Lagos, Monday, Daniel said airline operators have no basis to complain about the high insurance premium in the country because the risk associated with the industry is very high.

Daniel, who is the chief regulator of the insurance business in Nigeria, said, in most cases, the airline equipment used in Nigeria are outdated and these are some of the factors considered in arriving at premium for insurance.

“Any one (insurance company) that is charging more than 5 percent is over charging, but if there is regulation that determines how much is payable, we cannot as regulator, ignore such regulation.”

“And I think the insurance premium in Nigeria is one of the cheapest in the world. Some of the equipment we deploy in Nigeria cannot be allowed to operate anywhere else. Should we therefore not expect the Nigerian insurance industry to charge commensurate premium for the luggage they are carrying?” He queried.

On the Dana crash, the insurance regulator said the claims for the ill-fated Dana crash last year was amicably settled.

“I am happy to report to you that the claims following the Dana Crash have been settled.”

He said Nigerian insurance companies have come of age to handle big claims, saying that in the aviation sector the airlines are insured by local companies in collaboration with international firms.