“No Premium No Cover” Favours Insurance Industry – Operator

The Executive Director, Business Development, Mutual Benefits Assurance Plc, Mr Gbenga Ogunko, has said that the ‘No Premium No Cover’ policy has increased the fortune of the insurance industry.

Ogunko said at a press briefing in Lagos that since the implementation of the policy on January 1, 2012, the number of policy holders had increased.

The  reports that the policy was introduced by the National Insurance Commission to check non-payment of premium/bad debt in the industry.

According to Ogunko, the implementation has created much insurance awareness among Nigerians.

?”No Premium No Cover’ is beneficial to the industry. Before January 1, operators were not sure whether the policy would work, but now, many companies are smiling to the banks.

“It shows that insurance has come of age. Now, people pay premium and are doing it joyously,” he said.

Ogunko said that more people were realising that insurance could serve as a useful tool to check losses.

The executive director said that the industry had also created more awareness on how to obtain a third party policy.

According to him, some policy holders have also benefited from huge claims from insurance companies.

?Ogunko said that insurance premium was scientifically fixed, and that insurance business revolved around a pool of funds.