Wonder why Insurance in Nigeria struggles with trust issues? Welcome to the odyssey of the holder of Policy 401-0010116, an investment-linked insurance policy, with NSIA Insurance.
No, it had nothing to do with payment, after the policy had matured. NSIA indeed paid. But it had everything to do with how the payment was calculated, with the policy holder holding the end of the stick; and NSIA not only sitting pretty but also making a pitch for more business — what chutzpah!
Policy 401-0010116 is a yearly savings plan. At maturity, it is worth N600, 000, with a monthly premium of N50, 000. But that is if the policy holder stays true to his monthly premium commitment.
The banks would call it savings, even if unlike the premium, there is neither a guarantee nor expectation that the monthly deposit would be as prompt and regular as the premium.
Still, both premium (Insurance) and savings (banking) experience the same market dynamics: the trading houses invest the money. The proceeds are then shared by the “trading partners”: profit to the bank/insurance company; interest earnings to the depositor. In other words, the money would have worked for both.
Well, policy 401-0010116 didn’t fulfil its premium obligations. Out of 12 months, it only delivered four months. So when it terminated, it only grossed only N200, 000, instead of the expected N600, 000.
Still, the holder would expect his N200, 000, with a little interest, right? No! — at least by NSIA logic. What the insurance company paid was N194, 000. So, instead of earned interest, the holder only incurred a levy?
What really happened? Did NSIA just bury the premium in a safe? If it indeed invest the money, how come nothing from the proceeds accrued to the fund’s basic owner, so much so he had to endure a levy? O, did it make a loss? Is the “levy” punishment for cramming its choked coffers with “useless”funds? Or was it punishment, for not staying true to the premium regime? Questions!
Don’t forget: in a bank, even if the savings did not fetch interests (and it should have), the depositor won’t take back anything less than his original deposit. Yet, in routine savings, he can exercise the right to withdraw his money any time he pleases. So, what’s this investment holder’s gain for not being able to access his premium, until the investment plan matures?
But even after this skewed deal, which short-changed the policy holder, the image NSIA could project is a hustler zealously rubbing his palms and asking the “maga” to come do more business!
How else do you interpret this single pitch, sent twice by text messages? The first, sent on October 3, announced the maturity of the plan, urged a renew under the same term, but told the receiver to ignore the message, “if payment has already been made.”
The second, dated October 29, after it had paid N194, 000 from a deal that totalled N200, 000, also came, urging a renewal! So, NSIA would just sit pretty, do business with your funds, hand you the “change”, and smirk it’s been great doing business with you?
How, in the name of God and common sense, does it expect a repeat business? And where is the industry regulator — snoozing and snoring, while helpless citizens and customers are victims of these routing rip-off?
Nigerian Insurance and trust? Perhaps two parallel lines that would never meet!
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