What You Need to Know About Insurance in Nigeria

What You Need to Know About Insurance in Nigeria

Having Insurance in Nigeria can save Your life and Business. Having an insurance cover is like having a guarantee that you can continue life.

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What You Need to Know About Insurance in Nigeria
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This is the first of a demandsupplier series on “Be Protected – What You Need to Know About Insurance in Nigeria”.

Having Insurance in Nigeria can save Your life and Business

Having an insurance cover is like having a guarantee that you can continue life from where you lost everything if you lose everything.

Insurance gives you that peace of mind and lets you do business with minimal exposure to negative risk.

Insurance cover is what covers the wise and the rich. The use it to protect themselves from circumstances beyond their control.
So in the event of a loss you can be covered by your insurance company.

Introduction to Insurance in Nigeria

What is insurance?

Insurance is an arrangement by which a company accepts to provide a guarantee of financial compensation or otherwise for specified loss, damage, illness, or death in return for payment of a specified premium.

What is an insurance cover?

An insurance cover is the amount of risk or liability that is covered for a person or a business by way an insurance company.
An insurance cover is of many types. There are Private, Life and Business insurance covers. An insurance cover is issued by an insurer or insurance company in the event of unforeseen disaster.

What is an insurance policy?

An insurance policy is a document that contains the details of the terms and conditions of a contract of insurance cover that you are buying.

This means this document states the agreement between you and the insurance company.

It includes the premium you paid, the extent of the loss they will cover if it happens, the duration of the insurance period and the addresses and signatures of you and the representative of the insurance company.

What is an insurance premium?

An insurance premium is the amount of money that you or your business pays for an insurance policy. The insurance premium is income for the insurance company once you pay it but, it also means that if a liability or loss occurs to your business, the insurance company must provide coverage for claims you make made against the policy.

What is a claim?

An insurance claim is a formal request you make to your insurance company asking them to pay for a loss you suffered based on the terms of the insurance policy.
The insurance company reviews the claim for its validity and then pays out to the insured or requesting party (on behalf of the insured) once approved.

You must Guard against Loss Even With Your Insurance in Nigeria

Even though your insurance company will pay compensation if you make a claim and the verify it, they don’t just send you money immediately you make a claim.

It Takes Some Time

It takes about 1 – 2 weeks to visit, investigate and verify your claim.
It is during that time that they adjust losses. There is some time between the event of loss and the payment of claim, replacement of the asset or rebuilding if it is a property.

What Insurance in Nigeria can’t Replace

However, there are things money cannot compensate for like the 1 – 2 weeks you lose while waiting for your claim to be settled, the emotional and psychological trauma and effects of the loss on you and your loved ones – these, money cannot settle.

God forbid but what if the event leads to a loss of life?
It is better not to experience any of these losses so please be extra careful even with your insurance to prevent any event of a loss.

Make sure you don’t miss the demandsupplier series on “Be Protected – What You Need to Know About Insurance in Nigeria-2”.

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