Tuesday, December 29, 2020 / 02.57PM / By Ekerete Olawoye Gam-Ikon /
Header Image Credit: insurecover.co.za
Insurance is, indeed, part of our future but most of us prefer to
discuss it in the present, asking questions like, "What can I get from
it?" rather than seeking to answer the crucial question of "How did I
plan to survive this time?"
A section of the latest news have revealed that Nigeria lost about 20
Doctors and several health professionals to the dreadful COVID-19 pandemic.
Sad, very sad, however the families may not be so severely pained as the
"relief package" that the insurance industry put together last April
would arrive for the designated beneficiary. Recall that N11b worth of Group
Life Insurance was packaged by selected insurers in response to the call for
contribution by the Federal Government of Nigeria after the outbreak of the
pandemic.
The insurance industry is quietly honouring such claims and those of
their policyholders affected by the wanton destruction of properties following
the #EndSARS protests in October. The point is those receiving their claims
payment cheques had planned to survive any future unexpected losses or damages
by taking up insurance.
It is similarly for this reason that those being owed long overdue
payments of claims by some insurers should be paid without further delay, as
some have become impoverished from waiting endlessly for the fulfilment of the
"shifting promises" by the insurers to pay; most times, even after
the intervention of the regulator, National Insurance Commission (NAICOM) and
the trade association, Nigeria Insurers Association (NIA).
When you know that insurance can help you survive a future that brings
misfortune in form of death that causes you to leave loved ones behind,
accidents that damage or cause you to lose your prized assets and/or deliberate
acts of others that result in such damages/losses, you are amongst the
distinguished few that understand the place of insurance in personal financial
planning. Just like businesses do, you secure your future by ensuring that when
the unexpected happens, you are able to bounce back and continue living like
the accident or incident did not happen.
Assuming the Crisis Persist
As this new normal continues to unfold before our eyes and we are seeing
one year of COVID-19 coupled with increased level of insecurity and
debilitating state of the economy, it is simply advisable that you turn to
insurance to protect yourself, your family and enterprise from any unexpected
impacts.
You might be one of the beneficiaries of the Federal
Government-sponsored Survival Fund and/or any other interventions at this time,
the smart ones amongst you who know that such interventions will not last for
long are already investing some percentage of what they receive in suitable
insurance products that will ensure they are not stranded when the flows stop.
What will happen when over 300,000 Nigerians, for whatever reason do not
receive payments from the Survival Fund 3 or 4 months from now and we are in
the thick of the second wave of COVID-19 pandemic? With no fallback position
such as insurance, the crisis occasioned by the pandemic would have worsened
for such Nigerians. However, those that had the appropriate insurance product
for such a season would be approaching their insurers to either terminate their
policies or take small loans on account of what such policies allow.
There lies the difference between those who prepared for the crisis,
based on previous experiences, and those who decided to continue with the
haphazard style of calling a friend or relative for help, which sometimes comes
but takes away your dignity. Insurance, when it pays, actually dignifies you!
Importantly, when you consider giving it a trial, probably to firstly
acquaint yourself with the options available, it is advisable to search online,
walk into any bank (most of them have insurance affiliations) or request from
your group members (most of us belong to one group or another); let the option
of contacting that person you know working in an insurance company be the last.
This is because you need the idea/knowledge you will get from other sources to
better handle the sentiments often associated with buying through a close
friend or relative.
The way you procure insurance in Nigeria, to a very large extent,
determines what you experience when you have a claim and you need to process it
for payment by your insurer. It has been noted that some Insurance Agents or
Advisors are more interested in selling to earn their commission, and often end
up making you pay for what you might find out you did not need at the point of
discussing your claim.
Also, it is necessary to have your potential insurer's representative,
when you have decided to buy insurance, show you useful evidence that the
company has been paying claims and possibly provide a link where you can
independently validate the information. Knowing that you are dealing with an
insurer that gives priority to claims payment is the real meaning of enjoying
peace of mind from having insurance cover; and being paid promptly when you
have a claim, is the excitement, only comparable to receiving the expected
returns on your investment!
Businesses that Insure Thrive Notwithstanding
Having the expertise to manage risks, especially in uncertain times like
this, remain the differentiator in business and many business leaders know
this. While some are doing the norm of chasing to get customers who pay, as we
survive 2020 and go forth, more business owners have realized that they needed
to protect their businesses from the hate actions of protesting citizens than
seek or retain customers.
Emerging reports have revealed that the insurance industry is set to pay
claims amounting to N9.7b to over 1,000 businesses, most of them in Lagos, that
suffered losses and damages during the violent protests of October 2020. News
of those that did not have insurance, which we know are far more than those
that had, have not been heard yet but it would be expected that they are
talking with relatives and friends for help. Possibly, some of the uninsured
category of business owners will have to take loans to enable them return to
business and the implications of such steps are obvious.
Insurance Tips for 2021
Whether as an individual or business owner, you will pray and plan to succeed in 2021, so you might need to consider these pieces of advice:
It is my hope that we will not walk/work through 2021 with the fear that
held us bound in 2020 as we have developed better knowledge of the solutions
that are available for survival and progress.
Remember, we still have the collective responsibility to build our
nation, and I think, quite strongly, that with better understanding of the
workings of insurance in our lives and businesses, we can apply superior
knowhow to create the lifestyle we deserve.
Enjoy the beauty of ending well and the glory of starting afresh,
leveraging on insurance as your tool for transition; after all, it is also a
new insurance year for somebody and his/her business.
About the Author
Ekerete Olawoye Gam-Ikon, MNIM,
CPP, is a management consultant with a specialization in Strategy and
Insurance. You can contact him via email olagamola@gmail.com and
mobile +234-806-648-1111
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