Business
Quacks, Bane Of Nigeria’s Insurance Sector -Expert
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
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