Insurance In Nigeria

The meaning of Insurance in Nigeria


What isInsurance? Insurance is a contract between an individual (the insured, also called the policyholder) and an insurance company. What this contract does is to assure you that the insurance company will cover some portion of an insured’s loss as long as the insured meets certain conditions specified in the insurance contract. The insured pays a premium (a sum of money; whether monthly, quarterly, half-yearly, or yearly) to obtain insurance coverage. If the insured experiences a loss, such as a car accident or a house fire, the insured files a claim for reimbursement with the insurance company.

According to the Nigerian Bureau of Statistics, more than 90 percent of Nigerians are yet to know the benefits of Insurance in NigeriaMany Nigerians do not even know that quality insurance is in existence in Nigeria. Many do not see the benefit of getting their lives and properties insured. No one prays for any bad occurrence, but these mishaps do happen, and mostly when we are not ready. Insurance is important for everybody. 

According to Wikipedia, Insurance is a means of protection from financial loss. It is a form of risk management primarily used to protect against the risk of a liable, uncertain loss.

Wikipedia further explained that an entity which provides insurance is known as an insurer (insurance company). As mentioned in the first paragraph, a person or entity who buys insurance is known as an insured (or policyholder). The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and must involve something in which the insured has an insurable interest established by ownership, possession, or preexisting relationship. Check out an example below:

Suppose you have a motor third-party insurance policy. You pay ₦5,000 per year in premiums for a policy with a face value of ₦1,000,000, which is what the insurance company (insurer) fixed that it may cost to settle any claims in the event of an accident that involves a third party. Assess this scenario: One day, in traffic, you hit another car from behind unknowingly. And the owner of the car (third party) insists you repair her car. All you need to do is file a claim with your insurance company. The company assesses the damages, and then approves the claim. You would have paid your ₦5,000 premium per annum, and the insurance company covers your loss within that year. If the damage done on the car is found substantial, the insurer then repairs the car, or settles the third-party car owner.

When you buy an insurance policy, you’re pooling your loss risk with the loss risk of everyone else who has purchased insurance from the same company. If you get your motor third-party insurance from Mutual Benefit Assurance PLC, which is one of the best insurance companies in Nigeria, you’re joining forces with millions of other car owners to collectively protect each other against loss. Each car owner pays annual premiums.


Insurance companies are therefore able to use the premiums from car owners who don’t file a claim in a given year to pay for the losses of other car owners who do file a claim, which is called risk pooling.

It only makes sense to purchase insurance to cover significant losses you can’t easily afford on your own. Few drivers who are found at fault in a major car accident can afford to pay tens of thousands of naira in someone else’s medical or car repair bills, so they carry motor third-party insurance that provides for medical payments or settlement to others.

 Insurance is available to provide financial protection against a wide variety of losses like:


1. House or work shop fires

2. Apartment or store burglaries

3. Body damage from a car accident

4. Long-term disability of workers in a workplace

5. Death of someone that others rely on for financial support, and many more.

When you carry the right types of insurance in the right amounts, you’ll be protected against potentially catastrophic losses that could turn your life into shambles and shatter your finances.

I am sure we have seen in the news how many shops in the market get burnt overnight, and the shop owners turn up in the morning, wailing and calling on the government for relief. The government, however, is not an insurance company, and there is a limit to what it can provide as relief. Many of these traders who may have obtained their goods on credit end up in huge debt, and may never bounce back to their normal position. 

I, Jimoh Akintobi, am a Retail Marketer with Mutual Benefit Assurance, and here to provide many different insurance products that could be of great benefit to you. Feel free to contact me on: Call and SMS: 08174839915.Call and WhatsApp: 07038152995 email: akintobijimoh@gmail.com

Insurance in Nigeria is grouped into tow groups namely General insurance (non life) and life insurance. All the insurance products are listed below:


Motor Insurance in Nigeria

Motor Insurance


The fact that this business is being underwritten under the tariff regulations makes it an easy task for the underwriters.

·         PRIVATE CARS

·         COMMERCIAL MOTOR VEHICLES

·         MOTOR TRADE

·         AGRICULTURAL & FORENSIC VEHICLES

·         SPECIAL TYPES E.G. AMBULANCES

·         MOTOR CYCLES


Marine Insurance in Nigeria

Marine Insurance


A contract of marine insurance is a contract whereby the insurer undertake to indemnify the assured in a manner and to the extent thereby agreed against marine losses, that is to say, the losses incident to marine adventure (M.I.A. 1906)

·         CARGO POLICIES

·         Open transit cover

·         Single transit cover

·         HULL POLICIES


Travel Insurance (InsurVisa) from Nigeria

Travel Insurance (InsurVisa)


Features of Travel Insurance:


It provides cover for emergency medical services, loss or theft of personal belongings, money, evacuation and repatriation.

Benefits of Travel Insurance:

·         Loss of baggage or property

·         Trip Cancellation or Curtailments

·         Delayed Departure/Missed Departure

·         Personal money loss

 

Fire Insurance in Nigeria


Fire Insurance


FIRE & SPECIAL PERILS INSURANCE POLICY

A standard fire policy provides insurance cover against the following perils:-
·         Fire (limited cover)- limited by the exclusions stated in the policy.

·         Lightning (unlimited cover)- lightning damage from any source, whether accompanied by rain or not is covered.

·         Explosion (limited cover)- limited to the cover provided in the policy. For instance, explosions arising from gas used for commercial purposes e.g. oxy-acetylene gas used for welding and explosion arising from any gas works used for domestic purposes, lighting or heating the building is not covered.


SCHOOL FEES GUARANTEE SCHEME in Nigeria

SCHOOL FEES GUARANTEE SCHEME


The desire of every parent is for their children to have quality education. This can only come to reality if you are around to provide the financial backing necessary for the actualization of this desire.

Mutual Benefits School Fees Guarantee Scheme is an insurance plan designed to guarantee the continuation of a child’s education in the event of the parents not being there to fund their education as a result of death, critical illness or permanent disability.

Benefits of School Fees Guarantee Scheme


·         Convenient way of funding Children’s Education

·         Ensures realization of Children’s Education

·         The scheme helps you to cater for your children’s education even when you are no longer available

·         Tax advantages

·         It guaranteed peace of mind

·         It is the cheapest and affordable form of insurance


Group Life Assurance in Nigeria

Group Life Assurance


Group life Assurance Scheme is a form of Term Assurance contract; but the only difference being that, whereas, the latter is sold to individuals, Group Life provides Life Cover only to members under an identifiable grouping.

Features of Group Life Assurance:


·         Burden of providing lump sum for a dead employee, club member etc is transferred to the insurance company.

·         Complying with the law of the land (Pensions Reform Act 2004)

·         Give an organisation a good corporate image.

·         Boosts dedication and loyalty on the part of members

·         Saves organisation from embarrassment on the part of deceased family members.

·         Promotes budgetary discipline on the part of the organisation.

·         Cushions the effect of loss and devastation by deceased dependents


Keyman Assurance in Nigeria

Keyman Assurance


This policy provides cover against financial loss a company may suffer on the death of a key employee who is critical to the continued existence of the company. The following are typical situations that could require a key person policy:

·         A controlling person upon whose existence the repayment of a credit facility extended to a company may depend. In this case a bank may insist on life cover as a condition for the loan.

·         A founder of young company who still provides most of financial backing should take up this policy. This is because the company might not be able to survive at all after his death.

·         A situation where there is an expert, who is very vital to the full implementation of a particular project because of his detailed knowledge; the death of such an employee might necessitate the cancellation of the project unless enough fund can be available to hire an equally suitable replacement.

·         A top executive who has been recruited as a result of an expensive ‘head hunting’ operation. If he was expensive and difficult to recruit, then finding a worthwhile successor will also be expensive and difficult.


Term Assurance in Nigeria

Term Assurance


Term Assurance is a pure life assurance with no investment linked, hence it is the cheapest type of assurance policy, and the main provision of the policy is the payment of the sum assured on the death of the life assured within the policy term, that is, within a specified period. If the assured survives the period, the assurance expires and there is no payment made by the insurance company.

Benefits of Term Assurance


·         It is a very cheap form of life cover.

·         You pay a very small amount (premium) to enjoy a very large cover.

·         Convenient payment options – monthly, quarterly, half yearly and yearly.

·         It can be used as additional collateral for loan.

·         Creation of immediate estate upon the inception of the policy for the dependents.

·         In case the assured lives until the end of the specified term of the policy, the policy expires and no benefit is payable.

·         Any family man or woman who has young dependents should have this cover in place.

·         It creates confidence in the mind of the assured to move on with life activities.

Other Assurance products are:

• Whole Life (Limited Premium Payment Plan)

Investment Linked Schemes

• Individual Savings And Protection Plan (I.S.P.P.)
• Children Education Plan

Pure Investment Products

• Micro Pension And Personal Investment Plan
• Mutual Education Guarantee Plan
• Mutual Group Investment Protection
• Personal Pension And Investment Plan ( P.P.I.P )

Anticipated Endowment

• (THREE PAYMENT PLAN)
Mutual Annuity Products

Insurance Sales Person in Nigeria, Jimoh Akintobi

If you need any of these products or want more consultation, contact Jimoh Akintobi on:
Call and SMS: 08174839915
Call and WhatsApp: 07038152995

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