The recent accidents in Niger State’s mining sites that resulted in the loss of lives call for taking life insurance policy to mitigate associated risks, writes JOSEPH INOKOTONG.
A Mining pit collapsed at Galadimakogo in Shiroro Local Government of Niger state, and 14 miners were reportedly trapped. As the authorities concerned individuals were struggling to rescue those affected, another pit collapsed at Bazakwoi in Adunu district of Paikoto local government was reported. These happened barely 10 days after each other, last week.
Already, the latest incident in Bazakwoi has been reported to have claimed three lives.
A similar unfortunate occurrence took place in Oyo State recently when explosion rocked parts of the ancient city of Ibadan with the attendant loss of lives and destruction of properties. The Ibadan explosion has been allegedly linked to mining explosives.
It is becoming obvious by the day that many, if not all the people affected by these unfortunate incidents were not insured against any form of risk.
When a disaster of this magnitude occurs, victims are left either at the mercy of the public or the government for charity. This throws up the need to examine the Mining and other related insurance policies that can cater for situations like these.
This brings to the fore the over-riding need for all to take a life insurance policy to mitigate unforeseen occurrences.
Life Insurance can be defined as a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period.
In life insurance policy one needs to pay premiums for a specified policy term and life insurance company will provide the client with a comprehensive life cover, in return. Life Insurance protects the future of loved ones by paying a lump sum amount referred to as death benefit if an unfortunate event occurs. Some life insurance policies provide a Maturity Benefit after the end of the policy term.
Experts say lack of awareness is one of the major impediments to widespread non-adoption of life insurance, while the availability of different types of insurance products also confuses some people. However, most life insurance policies function in a similar manner.
In Nigeria, about 67 insurance companies have been licensed to operate, according to figures obtained from the National Insurance Commission (NAICOM). It stated in the report that the insurance companies comprised “Life, 13; general, 27; composite 12= 52. Reinsurance, three; Takaful, four; micro, eight= 67.”
On the other hand, mining insurance is an important type of insurance that may not be available in Nigeria for various reasons. Experts say that mining is a risky business, and there are a lot of potential hazards, such as explosions, cave-ins, and environmental damage.
Mining insurance can help protect the company and its employees from these risks. It can cover things like property damage, bodily injury, and environmental cleanup costs. It is useful and even necessary for companies in the mining industry.
Mining insurance and explosion insurance are not the same, but they are related. Explosion insurance is a specific type of insurance that covers damage caused by explosions. It is often purchased by companies that use explosives, like mining companies.
However, mining insurance covers more than just explosions, it also covers other types of accidents and risks. So, while explosion insurance is a part of mining insurance, it is not the only thing that mining insurance covers.
Explosion insurance typically covers things like property damage, business interruption costs, and liability costs. If an explosion damages the company’s property or causes the business to temporarily close, explosion insurance can help to cover those costs.
Mining insurance, on the other hand, covers a broader range of risks, including explosions, but also things like environmental damage, liability for injuries, and more. While explosion insurance is a part of mining insurance, mining insurance is more comprehensive.
In context, mining insurance is considered a type of specialty insurance. This means that it is not something that is usually included in a standard business insurance policy but is usually purchased as a separate policy because of the unique risks associated with mining.
Also, it is usually more expensive than standard business insurance because mining is considered a high-risk industry, and the insurance companies charge higher premiums to reflect that risk.
It is important to note that mining insurance is not just for companies that mine for precious metals or gemstones. It can also be used by companies that mine for things like coal, oil, or natural gas. And there are even companies that offer specific policies for surface mining or underground mining. It all depends on the specific needs of the company and the risks associated with its operations.
In most countries, insurance companies that offer mining insurance need to be licensed and regulated by the government.
While mining insurance is available in most developed countries, there are some countries where it is not available. For example, in some developing countries, the mining industry is not well-regulated, and there may not be any insurance companies that offer mining insurance. This can be a problem for companies that want to operate in those countries, since they may not have the same protections as they would in other countries.
Experts are of the view that in Nigeria, the mining industry is not well-structured, and there are no insurance companies that offer mining insurance. This can create a lot of risk for companies that want to do business in the sector. In addition to the lack of insurance, there are other risks associated with mining in Nigeria, such as corruption, inadequate infrastructure, and safety concerns.
Insurance experts say that in a case like what happened in Niger and Oyo States, a few different types of insurance could come into play.
First, there would be property insurance to cover the damage to the warehouse and any other property that was damaged in the explosion, and liability insurance to cover the injuries and deaths that resulted from the explosion and pit collapse. The workers’ compensation insurance will be handy to cover any employees who were injured or killed in the accident.
Property insurance is designed to cover damage to physical property, like buildings, equipment, and inventory. In this case, it would cover the cost of repairing or replacing the warehouse that was damaged in the explosion.
Liability insurance is designed to cover the cost of legal claims made against a company, including things like medical bills, lost wages, pain and suffering. In this case, it can cover the claims made by the people who were injured or killed in the explosion.
Workers’ compensation insurance is a type of insurance required by law in most countries, and it is designed to cover the costs associated with workplace injuries and illnesses. It will cover the medical bills and lost wages of any employees who were injured or killed in the explosion, and would also cover any death benefits that were owed to the families of the deceased employees.
These different types of insurance can work together. The property insurance covers the cost of repairing or replacing the warehouse, while liability insurance covers the claims made by the people who were injured or killed in the explosion. The workers’ compensation insurance would cover the medical bills, lost wages, and death benefits for the employees. All these types of insurance work together to make sure that everyone involved is taken care of.
In most countries, it is required by law for companies to have workers’ compensation insurance. If a company does not have this insurance, they can face some penalties such as fines, imprisonment, and even the loss of their business license. In some cases, the company’s owners or managers can be held personally liable for the costs associated with workplace injuries.
Workers’ compensation insurance is important for both employees and employers. It is a way of making sure that they are taken care of if injured on the job. It is tailored to limit their liability in the event of a workplace injury, and a win-win for everyone involved.
This type of insurance is often called “business insurance” or “commercial insurance” because it covers businesses and their employees. Business insurance refers to a few different types of insurance that work together to protect businesses and their employees.
In some cases, there are other types of insurance that can cover people who are injured on a business’s property but who are not employees. This is called “premises liability insurance.” It covers things like slip-and-fall accidents and other types of injuries that occur on a business’s property. Even if a person isn’t an employee, they may still be covered by insurance if they are injured on a business’s property.
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