4 Mistakes To Avoid When Filling An Insurance Claim | #IBN


There is a general misconception that insurance companies in Nigeria do not pay claims and when they do the payment is delayed.

According to the National Insurance Commission (NAICOM), N145 billion was paid as claims to policyholders by underwriters in the third quarter of 2018 and N400 billion in worth of business in the same year. 

No credible insurance company will repudiate any registered, admissible, fully documented and adjusted claim, but underwriters will not honour claims outside the claimant’s scope of coverage or policy duration. 

Below are 4 avoidable mistakes to achieve timely and satisfactory claims recovery:

1. Not reading your policy document(s): 

We advise that you read through your policy document(s) to know the extent of your insurance coverage to avoid any surprises.

2. Not notifying your Broker immediately a loss occurs:

As long as you have appointed a broker on your insurance, the first point of call regarding your claim is to notify the broker. The broker will help to determine the admissibility of the claim under your insurance policy, and then manage the entire claims process and administration until a satisfactory compensation is achieved.

3. Paying Third-Party Claims Out of Pocket: 

We advise that you seek the consent of your broker before you make any repair on your damaged property prior the conclusion of your insurance compensation.  Your broker, working on your behalf will know the extent of the flexibility of your insurance policy in such areas, so that you do not commit any expenses which may not be approved by your insurance company.

4.  Not reviewing your all calculations: 

Insurance payments for properties or vehicle damage are based on your estimates, which will be the basis of your claims adjustments by any adjuster that may be appointed by the insurance company.

We advise that irrespective of the insured value of the asset, you work with your broker to obtain and document a realistic estimate for repair costs for adequate and commensurate compensation.

Conclusion:

Insurance remains a significant part of a person’s or company’s financial wellbeing, and the old-age negative perception about the positive economic and financial contribution of the insurance companies, and their ability to enhance business continuity through compensation of genuine losses/claims, should be discouraged by any prudent property or business owner.




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