…Cornerstone, Ideal Insurance Brokers, others speak on claims
Are you a victim of #EndSars protest? Have you lost any property to the recent civil disruption that just ravaged the country? Are you injured or did you lose a relative? Are you insured against your risk? The insurance regulator, National Insurance Commission says you’ve got nothing to worry about as insurance companies will pay you claims.
The Commissioner for Insurance, Mr Sunday Thomas, in an interview with reporters urged the insuring public not to doubt the capacity of the industry to pay claims to all victims, as long as they have adequate insurance policies in place.
The commissioner, who said he has heard a crop of people doubting the capability of the industry to be able to pay, said insurance exists for times like this.
He, however, maintained that only insurance policies with extended cover that takes care of riots and civil commotion is the appropriate type to cover the kind of losses that emanated from #EndSars protest.
He stated that the insurance companies have reinsurance backing, noting that the insurance of all assets destroyed may not necessarily be domesticated in Nigeria.
Speaking on whether the huge losses that would accrue from #EndSARS would worsen the financial position of the insurance sector in the third quarter, he said that it will not be a problem for operators as there are reinsurance backing for them.
He said: “Why are you in doubt? What is the essence of the industry? A crop of people has talked about the capability of the industry being able to pay. I don’t know where that doubt is coming from because as far as I am concerned, insurance exists for times like this. What we should be asking ourselves is whether those properties are insured. Are premiums paid? As long as these questions are in affirmative in terms of answer, I can rest assure everyone that the claims will be paid knowing quite well the nature of insurance and how it works.
“This is why we have insurance and reinsurance which is the second level. All the assets may not necessarily be domesticated. The foreign companies are also involved in this matter. So, we don’t need to bother ourselves over the development. It is a time for the insurance industry to showcase its capabilities. And I can rest assure the general public that the industry is going to be alive to its responsibilities.
‘’There is nothing to worry about. So far there is extended cover for these risks, why won’t claims be paid. The ordinary cover may not have provision for it but if there is an extended cover, they will be adequately covered. The only thing I just want to say is that the business world, the individuals should learn and see insurance as a fallback position for them. There is nothing to worry about. The loss adjusters are already in the field to get estimates of whatever was lost”, he added.
Meanwhile, the Chairman of Boff & Company Brokers Limited, Chief Babajide Olatunde-Agbeja, disclosed that three of the firm’s clients who suffered losses had already received full compensation from their insurers.
“There are three medium-sized claims, all of which have been promptly paid,” he stated.
The Group Managing Director of Ideal Insurance Brokers Limited, Mr Fidelis Okare, said it was closely working with its clients to ensure they understand their coverage options.
“In these challenging times, our role as your trusted insurance advisor is more critical than ever. We are working closely with our clients to ensure they understand their coverage options and to help them secure appropriate protection against risks associated with civil unrest. For those who have experienced losses, we are actively supporting the claims process and working closely with insurers to expedite assessments and advocate for fair settlements. Some of our clients have already received their payments from the underwriters, while others are still in the process and awaiting final payments. We remain committed to ensuring that all affected clients recover as swiftly and smoothly as possible,” he said.
The Managing Director of Law Union & Rock Insurance Plc, Mr. Ademayowa Adeduro, noted that his company had issued discharge vouchers to several claimants. He explained that these vouchers function as promissory notes, with payments made immediately upon their return.
“In Law Union & Rock alone, we collated claims totalling approximately N2 billion,” Adeduro said. “That figure may decrease slightly, as it was based on sum insured estimates. Final amounts will be determined after assessments by loss adjusters.”
The Group Managing Director of Cornerstone Insurance Plc, Mr. Ganiyu Musa, revealed that his firm also anticipates claims in the region of N2 billion.
“Based on our internal model, claims could amount to as much as N2 billion,” he said. “We expect a significant portion to be recoverable from reinsurers. However, these are preliminary estimates, pending full adjustment processes.”
NEM Insurance Plc Managing Director Mr. Tope Smart said that the insurance industry is still in the process of compiling overall loss figures related to the protests. He confirmed that NEM has already gathered estimates for the claims it expects to settle.
In a similar vein, the Managing Director of SUNU Assurances Nigeria Plc, Mr. Samuel Ogbodu, reported that the company had concluded payments on several smaller claims, thanks to the prompt completion of investigations.
“We settled a number of minor claims ranging from N1 million to N2 million without delay. Some of the larger claims are from policies where we did not lead the consortium; in such cases, we are responsible for only a portion,” he said.
