Sir: People’s experiences with insurance companies have forced many to pay more attention to what the firms do not do. This influences the way we relate with them and, most of the time, we fail to see and seize the opportunities for value.
My advice for Nigerians is that: Health insurance for your family and employees is a cost-saving strategy. Focus on this. Within a week last April, a business owner in the logistics industry spent N500,000 on healthcare for a family member and an employee; a sum, which 50 per cent could have got a health plan that would have covered her family and employees for one full year based on the care provided for the sick ones.
The likelihood that this business owner will spend such an amount again for the same reason, before the end of the year, is high. The decision to take health insurance now could save her N750,000 or more this year. It’s that simple to see the difference when you focus on what insurance can do for you.
My second piece of advice is that over nine million out of 13 million registered vehicles in Nigeria do not have genuine insurance, and yours may just be one of them, unknown to you. Here is a way to confirm and ensure even your Third Party Motor Insurance Policy works for you: visit www.askniid.org and put details of your vehicle as requested, then you will receive a report informing you that your insurance is either valid or invalid.
Why would you bear an invalid Third Party Motor Insurance Policy and receive zero value in the event of an accident? An insurance company should compensate the affected Third Party up to the limit of N1,000,000 and cover any medical cost arising from the accident, then save you the costs, stress and time associated with such situations.
With an Annual Premium of N5,000 for Third Party Motor Insurance paid once while renewing your vehicle licence, you have access to millions of naira to address any challenges that will arise following an accident. Also, with N250,000 to N300,000, only you can obtain a Comprehensive Motor Insurance Policy for your vehicle valued at N10,000,000! Next time you are planning to buy a vehicle, consider this insurance cost along with the cost of registration so that you can say the vehicle costs you N10.5 million instead of N10 million. Always focus on what insurance can do for you;
Thirdly, insurance is a contract between you, or your company, and the insurance company. So, seek to get the advantage and value due to you from it. Quite often, many policyholders forget that their insurance policies are contracts and take things for granted until the unexpected occurs. Why? Simple. You fail to focus on what insurance can do for you. Sometimes, policyholders actually think they are just helping the insurance salespeople. It is your contract to execute but if you must delegate that duty, appoint a duly licensed Insurance Broker!
The end of June is the end of the first half of 2022 and the best time to review yourself and your business activities. Be led by the question: “Have we used insurance to our advantage in managing costs thus far this year?”
As risks increase in these times, deliberately use insurance to decrease the impact on you, your family, your relationships and business activities.
Ekerete Ola Gam-Ikon, an Insurance expert, wrote from Lagos.