A reknowed expert in the Nigerian insurance sector, Dritormstrong Harrison, has blamed the low penetration level of insurance in the country on the influx of quacks in the industry.
Harrison, who is the Chief Executive Officer of Corporate Insurance Development Limited, Port Harcourt in an interview with The Tide, said that, the low patronage by the Nigerian public can be attributed to the ignorance of the insuring public, to differentiate between insurance brokers and agents or quacks, whose nefarious activities have continued to destroy the industry.
“The perception of an average Nigerian about the industry is that, it is filled with fraudsters or brokers that don’t pay claims.
If you probe further to ascertain if he has ever been a victim of such delayed claims settlement, you will find out that, he doesn’t even hold any insurance policy at all. All they say is hearsay from what they have heard from one place or the other”, he said.
Harrison affirmed that an insurance company that knows its onions, would not want to treat its customers badly by delaying claim settlements because of the stiff competition in the sector.
“Every insurer will not want to lose a customer to a competitor. One would, indeed, expect them to look for reasons to pay claims, not reasons why claims should not be paid and often times, many people parade themselves as brokers and when you dig deep, you will discover that they are quacks,” he said.
He added that, the major reason people assume all insurance companies delay claim settlements intentionally is that when they have a loss, they just expect insurance companies to automatically compensate them without considering the type of policy they subscribed to or without proper investigation of what caused the loss on the part of the insured.
However, he stressed that Section 70 of the insurance Act 2003, requires that, claims must be settled within 90 days after the Insurance company accepted liability and issued its discharge voucher.
“If the company fails to pay within this period, the customer has the right to approach the National Insurance Commission (NAICOM), but any firm that has its integrity to protect would not wait for that to happen,” he added.
He pointed out that, “many people are just ignorant of specified terms of service, which ensure that all parties involved are informed of their responsibilities and the penalties that may occur from breaking these agreements. That made it practically difficult for insurance companies not to pay or delay settlement of claims.
Other factors responsible for delay of claims, according to Harrison, are lack of confirmation of coverage, which is based on the terms of the insurance policy, incomplete documentation, and premium not fully paid. But when both parties figure such issues, he said, payment should be made after the insured signs the discharge voucher, which indicates that a claim has been settled amicably between the insurer and the insured.
Bethel Sam Toby
11m Benefitted From $415m World Bank Supported CSDP – FG
The Federal Government has disclosed that 11 million Nigerians benefited from $415 million World Bank-supported Community and Social Development Project (CSDP) programme.
Minister of Humanitarian Affairs, Hajiya Umar Farouq, disclosed this in an opening address during the close out ceremony of the CSDP programme.
According to Farouq, 11 million direct beneficiaries with an estimated 25 million indirect beneficiaries across 29 states and the Federal Capital Territory (FCT) were reached between 2009 and 2021 when the CSDP programme was being implemented.
She also described the project as highly successful and highlighted sectors the project focused on including health, education, transportation, electrification, community housing, and others.
She said: “The Project became effective in 2009, has had two additional financing, all totaling USD415 million. In its over 11 years of existence, the CSDP has evolved into one of the strong pillars for the implementation of the Social Protection Programmes of the Federal Government under the supervision of my Ministry through the National Social Safety Nets Coordinating Office (NASSCO).
“The CSDP operates with the core principle of Community Driven Development (CDD) Approach. This is a development paradigm that focuses on the needs of the poor and vulnerable and empowering them with development resources to address their peculiar needs.
“Using this unique approach, the CSDP has implemented micro projects in poor communities across the 543 Local Government Areas of 29 States and the Federal Capital Territory.
“This represents about 70 per cent of the total number of Local Governments in Nigeria. The poor communities are identified specifically through the use of Poverty Maps agreed to by each participating State and FCT.
“The Project has made substantial impact on improving access of the poor and vulnerable to social and natural resources infrastructure across the benefiting communities. The total number of beneficiaries of CSDP stands at 11 million direct beneficiaries across the 29 states, with estimated 25 million indirect beneficiaries.
“Specifically, the CSDP has achieved the following: Successful completion of 16,166 micro-projects in 5,664 communities and 934 vulnerable groups. These micro-projects cut across eight sectors of intervention namely education, health, water, transportation, electrification, socio-economic, environment and community housing; 5,764 classrooms, 1,323 health centres and 4,442 water micro projects were constructed and or rehabilitated.
Cooking Gas Use Campaign Begins In 12 States
The Federal Government in collaboration with the Nigerian Energy Support Programme has kicked off the national sensitisation and awareness campaign for the use of Liquefied Petroleum Gas in Nigeria beginning with 12 pilot states.
The states include Sokoto, Katsina, Bauchi, Gombe, Enugu, Ebonyi, Delta, Bayelsa, Lagos, Ogun, Niger and the Federal Capital Territory.
The government said the campaign to ensure increased usage of LPG, popularly called cooking gas, was in line with its ‘Decade of Gas’ initiative, adding that its socioeconomic and health benefits far outweighed the use of kerosene and firewood.
Speaking at the inaugural campaign in Abuja, Tuesday the Vice President, Prof. Yemi Osinbajo, said there was no excuse for Nigeria not to be able to develop its gas sector considering the huge gas reserves in-country.
Osinbajo, who was represented by the Programme Manager, National LPG Expansion Plan, Office of the Vice President, Dayo Adeshina, said the use of LPG would help in cutting down gas flaring in Nigeria.
He said the government was working to ensure that Nigeria achieved the five million metric tons LPG consumption target, adding that efforts were being made to ensure the provision of cylinders at affordable rates to Nigerians.
“Our gas reserves in this country are enormous and we have every reason to develop the gas sector and ensure that our citizens use LPG,” the Vice President said.
He added, “The use of LPG is good for our health and has better socioeconomic benefits and this is in line with the ‘Decade of Gas’ initiative of government.”
Recently, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said over 120 million Nigerians were experiencing energy poverty despite the huge natural gas resources across the country.
Participants at the awareness campaign also called for adequate penetration of LPG usage in Nigeria, as they pledged to support the government in achieving this target.
Rail Transport Suffers 38% Decline In Q1 2021 – NBS
Rail transportation suffered a 38 per cent, year-on-year average decline in passenger and cargo travel in the first quarter of the year 2021 (Q1’21).
The National Bureau of Statistics (NBS) disclosed this yesterday in its Rail Transport Data for Q1’21, which showed that passenger travel fell by 34.4 per cent, year-on-year, to 424,460 passengers in Q1’21 from 647,055 passengers recorded in Q1’2020.
Similarly, cargo travel fell by 43.13 per cent, year-on-year, to 10,511 tons in Q1’21 from 18,484 recorded in Q1 2020.
The NBS stated: The rail transportation data for Q1 2021 reflected that a total of 424,460 passengers travelled via the rail system in Q1 2021 as against 647,055 passenger recorded in Q1 2020 and 134,817 in Q4 2020 representing -34.40 per cent decline year-on-year and +214.84 per cent growth QoQ respectively.
“Similarly, a total of 10,511 tons of volume of goods/cargo travelled via the rail system in Q1 2021 as against 18,484 recorded in Q1 2020 and 35,736 in Q4 2020 representing -43.13 per cent decline year-on-year and -70.59 per cent decline QoQ respectively.
Revenue generated from passengers in Q1 2021 was put at N892,467,526 as against N398,999,290 in Q4 2020.
Similarly,revenue generated from goods/cargo in Q1 2021 was put at N26.19 million as against N82.57 million in Q4 2020.
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