Contribution of Insurance Policy in Safety Risks at Construction Sites

Abstract

Studies have shown that construction workers are continuously liable to health and safety (H&S) issues which pose major problems and concerns to productivity in the construction industry. Despite the availability of H&S policy with specific insurance and risk management considerations; injuries, fatalities and death from construction related activities appear unabated, which suggests possible non-compliance of contractors to established H&S regulations. The study therefore evaluated the impact of insurance policy on the safety performance of workers on construction sites in Minna, Niger State with a view to enhancing the safety performance of construction workers on site. The study adopted a mixed methods research approach through the use of questionnaire, interview and data collection checklist. The study’s population was made up of 67 professionals from Niger State Ministry of Works and Infrastructural Development (NSMWID), 48 from Niger State Housing Corporation (NSHC) and 15 safety officers of construction firms actively involved in the projects executed by NSMWID and NHSC (i.e., population size of 130) with a response rate of 82.31%. Analysis of data was carried out with the use of frequency counts, percentage, Frequency count, percentage, Relative Importance Index (RII), Mean Item Score (MIS), content analysis and Spearman Rank correlation. Results of analysis revealed that the most important barrier to the implementation of insurance policy by construction firms is “Delay in payment of insurance claims” (MIS = 4.361); the most important driver of the implementation of insurance policy by construction firms is “Ensuring that construction companies subscribe to one type of insurance in order to reduce risk” (MIS = 4.430); and all the areas of H&S relevant to insurance policy implementation have an average level of compliance by construction firms in Minna, Niger State (average MIS = 2.313). It was also found that the relationship between the level of implementing insurance policy in construction projects and costs of accidents is significant (p = 0.000 – 0.001); and the most effective strategy for improving compliance with insurance policy in construction projects is “Designation of safety responsibilities to trained personnel” (MIS = 4.682). Hence, it was concluded that the impact of insurance policy on the safety performance of workers on construction sites in Minna, Niger State, Nigeria is significant. This led to a major recommendation that in order to improve the level of compliance with insurance policy in construction projects, construction stakeholders should develop a mechanism that will adequately take cognizance of the proposed strategies of this study.