Policyholders Seek Subvention On Premium Paid Without Claims
Insurance policyholders are clamouring for subvention for an insured who consistently insured for three to five years but without a claim within the period.
Speaking during a courtesy visit of the members of the Insurance and Pension Editors of Nigeria (IPEN) to the Coalition of Associations in Computer Village, Ikeja, Lagos, the President of the association, Mr. Timi David, charged insurance companies to introduce subvention to policyholders that have continuously renewed their policies but didn’t suffer any insured risk within a period of 3 to 5years.
Although, investigation revealed that few insurance firms are already granting discount, especially, for comprehensive policies, for this category of insured, investigation shows that most underwriters are yet to adopt this model.
The subvention, which he said, should come in the form of cash give-back or discounted rate in the subsequent years, noted that, this will entice unclaimed policyholders who have the notion that insurers are just collecting free money from them.
“For the past five years now, I have always renewed insurance of my car and didn’t have any reason to claim because I didn’t involve in any accident. So, I would expect my insurance company to give cashback or discounted rate to me the next time I am renewing my policy,” he said.
If this is done, he believes this will persuade more uninsured Nigerians to subscribe to insurance policies, saying, most people still see insurance as a scam because of the model of not compensating those who never had reason to submit for claims.
While commending the response time of insurers to claims payment, he said, the association bus had accident last year after it was comprehensively insured and got claims within a short time of filling for it, urging them to keep this up.
On his part, he believes the challenge of insurance is low awareness, calling on underwriters to increase their products visibility and increase awareness such that, Nigerians are better informed on what a policy cover and at what point he or she can claim.
While urging businessmen and women, traders among others to insure their shops and offices through Theft and Burglary insurance and so on, he said, this risk mitigation mechanism will ensure that goods in the shops and offices are protected and that the insured suffer no financial loss when disaster struck.
Earlier, the president of IPEN, Mr. Chuks Udo Okonta had said, the purpose of the visit was to feel the pulse of traders on their perception of insurance products and services, so that, their response can assist insurance industry to adjust their services in area they are not doing well.
As developmental journalists, he said, the group hopes to continue to engage the groups and individuals who are either insurance policyholders or prospects to enhance insurance education and awareness, believing, when more people are educated on the nitty-gritty of insurance, there are high chances that they will subscribe to insurance products and services, hence, deepening adoption in the country.
Leave a Reply