How To Get The Best From Insurance Protection

How To Get The Best From Insurance Protection
In Nigeria and several developing countries, the public poorly patronizes insurance, and their attitude towards insurance is generally negative. Several reasons are responsible for this; which include but not limited to the following:

Ignorance of the people about the benefits of insurance to their lives; which is extended to knowledge of how insurance works.

Unpleasant experiences of some members of the public from insurance operators especially from third party motor losses and abandoned life assurance policies’ claims. More so that some of the policies causing these problems were procured through incompetent agents. In some cases, they are caused by the procurement of fake products issued by fake insurers. These unscrupulous individuals took maximum advantage of the weaknesses in the regulatory environment to rip off members of the public of their money, which has resulted in the denting of the brand image of the Nigerian insurance industry.

Most policyholders do not read their insurance policies. They are therefore not aware of the extent of cover of the policy that they had procured, its terms and conditions, exclusions and the claims procedures to be followed in the event of a loss. This has resulted in a deflated hope at the time of loss when the insured discovers that the policy he had procured did not cover the cause of his loss, and the insurer would not indemnify him for the loss suffered.

See Also: Is Getting Insurance A Waste of Money?

The above notwithstanding, insurance is right out there to offer protection for most risk causing perils. Every individual or firm of whatever size or category can therefore, benefit fully from insurance protection under the following conditions:

The purchase of insurance must be carried out in a proper manner with genuine intentions. Insurance pays for accidental losses not ‘deliberate, self-inflicted, arranged or fake’ claims. There must be insurable interest and full disclosure of all material facts. The insured should bear in mind that insurance is a highly technical contract and not an ordinary transaction. Hence, there is need for the use of an Intermediary; a competent professional for that matter, called “Insurance Brokers” in placing of large and complex risks with insurer so as to get adequate cover for the risks.

Agents are the other intermediary used in the placing of risks with insurers; however, they are not as professional as insurance brokers in the placement of risks with insurers.

The Benefits of having a broker are as follows: 
  • Determine the types of insurances appropriate for your risk exposures
  • Negotiate the best prices (premium) to your advantage.
  • Agree and negotiate the best coverage terms for the policies
  • Secure payment of your claim while collaborating with you right from the time you reported a loss, through the processes of submitting the claims documentation, inspection/verification by loss adjusters and negotiation of offers made by insurers.
  • As your professional adviser and service provider, IBN is to have professional indemnity insurance for protection against errors and omissions in the discharge of its functions to you.
  • Your patronage of the services of IBN is at no direct or extra cost to you. Traditionally, the service of insurance brokers is remunerated through a commission on the premium paid to the insurers. This is the practice in most part of world and is approved by the regulatory authority. However, there are countries where the brokers are allowed to charge fees for the services that they render to the clients
  • If an insurance claim is repudiated and the insured is well convinced that there is no breach of any policy condition, he can lodge a complaint to The National Insurance Commission, The Nigerian Insurers Association and The Nigerian Corporation of Registered Insurance Brokers to assist with the review of the insurer’s position on the loss. Being a legally binding contract, the law courts provide remedies on insurance disputes and your broker should be in a position to advise on what action to take in case of a dispute involving claims payment. 
Engr. Jacob Adeosun
Executive Director
Industrial Risks Protection Consultants
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