Business Journal

Insurance

Policyholders Seek Subvention on Premium Paid Without Claims

 

From left: Publisher, SuperNews, Ngozi Onyeakusi; Director, Media, Information, Strategic Planning & Implementation, Coalition of Associations in Computer Village, Ikeja-Lagos, Mike Orji; President, Timi David; Publisher, Inspenonline, Chuks Udo Okonta; Publisher, Bislad News, Bisi Bamishe and Business Editor, Leadership Newspaper, Zaka Khaliq at the event.

Insurance policyholders are clamouring for subvention for an insured who consistently insured for three to five years but without making a claim within the period.

Speaking during a courtesy visit of the members of the Insurance and Pension Editors of Nigeria (IPEN) to the Coalition of Associations in Computer Village, Ikeja, Lagos, the President of the Association, Mr. Timi David, charged insurance companies to introduce subvention to policyholders that have continuously renewed their policies but didn’t suffer any insured risk within a period of 3 to 5years.

Although investigation revealed that few insurance companies are already granting discount, especially, for comprehensive policies for this category of the insured, investigation also reveals that most underwriters are yet to adopt this model.

The subvention, which he said, should come in the form of cash give-back or discounted rate in the subsequent years, noted that this will entice unclaimed policyholders who have the notion that insurers are just collecting free money from them.

“For the past five years now, I have always renewed the insurance of my car and didn’t have any reason to for claim because I wasn’t involved in any accident. So, I would expect my insurance company to give cashback or discounted rate to me the next time I am renewing my policy,” he said.

If this is done, he believes this will persuade more uninsured Nigerians to subscribe to insurance policies, saying that most people still see insurance as a scam because of the model of not compensating those who never had reason to submit or file for claims.

While commending the response time of insurers to claims payment, he said the Association’s bus had an accident last year after it was comprehensively insured and got claims within a short time of filling for it, urging them to keep this up.

On his part, he believes the challenge of insurance is low awareness, calling on underwriters to increase their products’ visibility and increase awareness such that, Nigerians are better informed on what a policy covers and at what point he or she can file a claim.

While urging businessmen and women, traders among others to insure their shops and offices through Theft and Burglary Insurance and so on, he said that such risk mitigation mechanism will ensure that goods in the shops and offices are protected and that the insured will suffer no financial loss when disaster strikes.

Earlier, the President of IPEN, Mr. Chuks Udo Okonta said the purpose of the visit was to feel the pulse of traders and tech artisans at Computer Village, Ikeja on their perception of insurance products and services so that their response can assist operators in the insurance industry to adjust their services in areas they are not doing well.

As developmental journalists, he said that IPEN hopes to continue to engage various groups and individuals who are either insurance policyholders or prospects to enhance insurance education and awareness, believing that when more people are educated on the nitty-gritty of insurance business, there are high chances that they will subscribe to insurance products and services, hence, deepening adoption in the country.

 

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