There’s value for every party involved in the process of insurance, whether as an operator (agent, broker, insurer, loss adjuster, microinsurer, reinsurer, takaful and web aggregator) or a regulator (NAICOM) or trade association (ARIAN, ILAN, NCRIB, NIA and PRAN) or a policyholder (customer)!
Interestingly, no one amongst these stakeholders really shows or tells one the value for the other. YOU HAVE TO FIND IT FOR YOURSELF.
Let me illustrate using the Third Party (Private) Motor Insurance, which premium rates have been increased with effect from today from N5,000 to N15,000 per year, and advise thus:
ADVICE 1: As a customer (policyholder) that decides to purchase genuine insurance coverage for your vehicle, you need any of these operators (agents, brokers, insurers) to assist you. Even if you got your Third Party Motor Insurance Certificate from the Vehicle Licensing Office, you need their assistance to confirm the veracity of the certificate. Don’t pay N15,000 and walk away without ascertaining that you’re covered. Ask and understand the value you should get in the event of an accident.
ADVICE 2: As an operator, take time to inform the policyholder that the insurer is the first party, he/she is the second party and the other vehicle or property on the road is the third party. Inform him/her that after paying for the insurance, he/she will be given the policy document (contract), which states the benefits of the policy as “Limit of Liability”, a term understood only by insurance actors. You should clearly inform the policyholder that when he/she ACCIDENTALLY hits the other vehicle or property, he/she need not go into any argument or scuffle or allow the third party to provoke him/her. A simple apology to the victim, followed by a call to you (the operator) will activate the access to N3,000,000 (Third Party Property Damage) available to fix the damages to the other vehicle or property based on the N15,000 you had received. Also, he/she should be informed that the cost of any bodily injuries to any occupant of the other vehicle or property will be equally taken care of by you (the insurer).
ADVICE 3: As a regulator, you’ll probably only hear about the sour relationship between the policyholder and the insurer, when the latter fails to settle and pay the claims after 90 days as stated in the Insurance Act 2003. You should have zero-tolerance for such delay and speedily determine the case within 14 days, and may be, henceforth, the insurer should pay a fine for allowing the case drag for that long.
ADVICE 4: As a friend or well wisher of the policyholder or insurance operators and regulators, share this advisory to help someone focus better on the value obtainable from the insurance process.
Policyholders find value when they’re relieved of the burden that follows accidents while operators have the premium (insurer) and commission (agents and brokers), then the regulator gets the levies from the operators at year end.
Insurance creates VALUE for everyone. Let’s make it work for us!
