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Nigerian Auto Insurers: Do They Ever Pay Up? - Car Talk - Nairaland

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Nigerian Auto Insurers: Do They Ever Pay Up? by silvasurfa(m): 12:24am On Jun 22, 2012
Most of us are excusably skeptical of insurance companies especially when it comes to payments for justifiable claims. At the beginning of the relationship, the insurance company will usually project itself as a company that pays claims promptly for most classes of risk eg theft, damage (3rd party or comprehensive), fire etc as long the as the premium payments are regular and up-to-date. However, from anecdotal evidence, it appears that whenever claims are presented, the insurance companies employ all kinds of professional (and sometimes unprofessional) strategies to avoid paying - including recourse to the famed 'fine print' in the contract papers.

A former colleague crashed his Toyota Avensis awhile back and went through hell with the insurance company despite the fact that his mother was a high court judge at the time. It took the combined efforts of his mum's connections and other overt threats to get the insurance company to replace the totalled vehicle.

I am constrained to start this thread because I am interested in buying a new car and considering the deteriorating security situation of the country, I want to be absolutely confident that any Auto Insurance Company I deal with will pay or replace my vehicle promptly in the event of a theft without too much diversionary tactics or stories.

Kindly share your stories so we can learn. At the end of the day, my scepticism just might be unfounded. Also, I would appreciate it greatly if you could recommend any good auto insurance company that has a good track record for payment of claims.

Thanks.

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Re: Nigerian Auto Insurers: Do They Ever Pay Up? by oayombo: 12:49am On Jun 22, 2012
The issue is not about an insurance company refusing to pay legit claims. Anyone taking an insurance policy needs to read the terms and conditions attached to it. You'd be surprised at the kind of fraud some people commit in order to get claims.

2 Likes

Re: Nigerian Auto Insurers: Do They Ever Pay Up? by faithin9ja: 12:50am On Jun 22, 2012
Insurance premiums are too low in Nigeria, a flat rate of 5% does not justify the real cost of risk. in other countries premiums are calculated depending on your driving experience, your age, gender, where you live and other factors. In Nigeria everybody is expected to pay 5% flat rate regardless if you are the worse driver in the world, third party, fire and theft is even just a fixed fee regardless of even the car!!!

how do you expect insurance companies to pay up N17 million for a truck, when the premium they collected was N800k

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Re: Nigerian Auto Insurers: Do They Ever Pay Up? by thepakmail: 1:09am On Jun 22, 2012
Nigerian auto insurance companies do pay but there is always a catch. My friend pays 5% of declared value for his Ford edge 2011 model. Sometime late last year someone hit his car from behind, his insurance paid the claim though he had to take the other party to the police station and they wrote statements and the other party had insurance too which made the claim process easier. And the insurance companies always install a tracking device on your vehicle when you require the full coverage.
Re: Nigerian Auto Insurers: Do They Ever Pay Up? by bugmenot: 1:19am On Jun 22, 2012

@faithin9ja

I beg to disagree with you. Insurance never really pays claims from an accumulation of the claimant's premiums. Premiums are supposed to NOT be exorbitant relative to the item being insured. For each individual mishap and claim, there are numerous individuals who will not have any need to make claim, that's how the insurance companies make money. It is however not unthinkable for an insurance company to incur a loss in a given financial year, it's part of the risk they take.

Insurance premiums in Nigeria are low, I agree but that is is a situation that I believe arose from competition. Similar situations obtain in some developed countries - in the US for example, annual insurance premiums for houses are often ridiculous relative to the value of the houses being insured. Guess why? Competition. Many insurance companies refuse to get into the property (housing) insurance business because of this.

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Re: Nigerian Auto Insurers: Do They Ever Pay Up? by linearity: 1:31am On Jun 22, 2012
faithin9ja: Insurance premiums are too low in Nigeria, a flat rate of 5% does not justify the real cost of risk. in other countries premiums are calculated depending on your driving experience, your age, gender, where you live and other factors. In Nigeria everybody is expected to pay 5% flat rate regardless if you are the worse driver in the world, third party, fire and theft is even just a fixed fee regardless of even the car!!!

how do you expect insurance companies to pay up N17 million for a truck, when the premium they collected was N800k

5% flat insurance premium is too much....insurance coverage works on the law of large number....even in the USA where insurance is metered based on individual risk, etc...those who fall into the high risk insurance pool do not pay upto 5%.....my two cars two driver insurance runs around 1.8%
Re: Nigerian Auto Insurers: Do They Ever Pay Up? by fstranger6: 1:36am On Jun 22, 2012
linearity:

5% flat insurance premium is too much....insurance coverage works on the law of large number....even in the USA where insurance is metered based on individual risk, etc...those who fall into the high risk insurance pool do not pay upto 5%.....my two cars two driver insurance runs around 1.8%

1.8% of what?
Re: Nigerian Auto Insurers: Do They Ever Pay Up? by linearity: 1:47am On Jun 22, 2012
fstranger6:

1.8% of what?

both cars were bought new.....insurance is around 1.8% of the cost price...not that insurance is based on the cost of the car...it is base on a lot of criteria like gender, age, when u first start driving, educational level, where u live, where the vehicle is parked at night, ur driving history, u own a house vs renting, average miles driven per year, general usage of the vehicle, etc....

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Re: Nigerian Auto Insurers: Do They Ever Pay Up? by Nobody: 2:25am On Jun 22, 2012
I believe insurance is supposed to be the next thing that could spun into big business in Nigeria. The potentials are there but I think the awareness is missing along the line.

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Re: Nigerian Auto Insurers: Do They Ever Pay Up? by manny4life(m): 2:29am On Jun 22, 2012
linearity:

both cars were bought new.....insurance is around 1.8% of the cost price...not that insurance is based on the cost of the car...it is base on a lot of criteria like gender, age, when u first start driving, educational level, where u live, where the vehicle is parked at night, ur driving history, u own a house vs renting, average miles driven per year, general usage of the vehicle, etc....

1.8% of both cars? Are you serious or just joking? Assuming that the estimated book value of your car is $50,000 and you have a 1.8% annual premium, so you're convincing us that you're paying $900 annually for both cars, BRAND NEW? I mean regardless of the fact that it's brand new, maybe you're an excellent driver, you drive avg miles on he car, etc

Keep in mind that I used $50,000 for both cars, what this means is that, the higher the value of the car, obviously the higher the premium.

faithin9ja: Insurance premiums are too low in Nigeria, a flat rate of 5% does not justify the real cost of risk. in other countries premiums are calculated depending on your driving experience, your age, gender, where you live and other factors. In Nigeria everybody is expected to pay 5% flat rate regardless if you are the worse driver in the world, third party, fire and theft is even just a fixed fee regardless of even the car!!!

how do you expect insurance companies to pay up N17 million for a truck, when the premium they collected was N800k

I mean, there are parts to claims, depending on what you're insured for. I think 5% is modest for standard cars, for more expensive cars, you simply DON'T insure them; that's so much risk and companies apply discretion. I mean if you purchased the Minimum Liability Coverage and you're expecting full payout, like seriously? Who does that?

Besides, from the way I understand insurance works in general, it works by a pool system. If 10,000 people are insured for a whole year with an annual premium of say $600, insurance companies expect to pay claims based on different outcomes. Probably, their risk analyst might say 2 out 5 persons might seek claims, and each claims is grouped into a class. I mean, it's impossible for insurance to pay 100% claims to ALL it's clients and it's not based on what you contributed but based on a shared coverage.
Re: Nigerian Auto Insurers: Do They Ever Pay Up? by deor03(m): 3:16am On Jun 22, 2012
GT Assurance does

1 Like

Re: Nigerian Auto Insurers: Do They Ever Pay Up? by Murphy7h4: 3:24am On Jun 22, 2012
BUMPS
grin
Re: Nigerian Auto Insurers: Do They Ever Pay Up? by Murphy7h4: 3:24am On Jun 22, 2012
BUMPS
Re: Nigerian Auto Insurers: Do They Ever Pay Up? by Partteen: 3:35am On Jun 22, 2012
Leadway Assurance pay claims

1 Like

Re: Nigerian Auto Insurers: Do They Ever Pay Up? by Novice1(m): 4:27am On Jun 22, 2012
IGI made me go thru hell b4 settling my claim for a fender bender. Hell, I even gotpissed off and did the repirs myself b4 they paid me much later

1 Like

Re: Nigerian Auto Insurers: Do They Ever Pay Up? by omosexy1: 4:29am On Jun 22, 2012
Be prepared to bear 10% of your claims. However insurance do pay
Re: Nigerian Auto Insurers: Do They Ever Pay Up? by Nobody: 5:12am On Jun 22, 2012
@Topic Buuhahahahahaha cheesy cheesy cheesy
Re: Nigerian Auto Insurers: Do They Ever Pay Up? by Excuzeme: 5:48am On Jun 22, 2012
The worst amongst the insurance companies is CRUSADER!
Very unprofessional Mgt level staff, the only thing they are good at is using our premiums to buy New Cars for themselves every January of every year.

To pay small, legitimate claims, they begin to play pranks.

If you insure with them, you as good as O-Y-O! grin

2 Likes

Re: Nigerian Auto Insurers: Do They Ever Pay Up? by oiseworld: 7:19am On Jun 22, 2012
try royal exchange, they've been around for long. They are also well established with branches across the federation. I believe they'll pay.

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Re: Nigerian Auto Insurers: Do They Ever Pay Up? by boladez(m): 7:24am On Jun 22, 2012
Insurance companies do pay claims and you need to get a broker to explain all the fine print to you.

However IGI does not pay claims and they are like a large ministry. The company is messed up when it comes to paying claims. The place is run like a family business. I have fought them to a standstill in the past

In the event of an accident;

Thank God for your life
get the car to the garage and do not attempt to effect repairs without taking pictures
Report in writing to the insurance company or the agent
Take pictures including the plate number of the vehicle and ensure dent or breakage is clear.
Fill the insurance claims form and submit to the insurance coy ensure you get an acknoledgement copy
if they do not send the engineers to inspect the car in 3 to 4 days write them and tell them you will commence repairs in the light of their apathy
After the inspection, let them negotiate directly with your garage
They will give you a go ahead to commence repairs
Hopefull you will get paid within one month

2 Likes

Re: Nigerian Auto Insurers: Do They Ever Pay Up? by norrisman: 7:36am On Jun 22, 2012
manny4life:

1.8% of both cars? Are you serious or just joking? Assuming that the estimated book value of your car is $50,000 and you have a 1.8% annual premium, so you're convincing us that you're paying $900 annually for both cars, BRAND NEW? I mean regardless of the fact that it's brand new, maybe you're an excellent driver, you drive avg miles on he car, etc

Keep in mind that I used $50,000 for both cars, what this means is that, the higher the value of the car, obviously the higher the premium.


5% flat rate is expensive although I accept thats what works best in Naija.

I pay circa £700/ year as premium for a car I bought new and is valued @ circa £35,000. My premiums reduce annually as my no claims bonus increases. Imagine I was asked to pay 5% of the book value of the car, I would have paid about £5000 in my 3 years of ownership! God forbid, e pay me make I dey ride bicycle.

Young, first time drivers do get hit with premiums of up to and sometimes more than £2000. This is in most situations more than the value of the car they are insuring. Its all about risk calculation
Re: Nigerian Auto Insurers: Do They Ever Pay Up? by Nobody: 7:41am On Jun 22, 2012
Try GTB assure. I think they have something good. But make sure they explain everything down to earth to you because they can be too proffessional and logical in their language.
Re: Nigerian Auto Insurers: Do They Ever Pay Up? by Oluwashegzy(m): 8:18am On Jun 22, 2012
If u r looking for insurance company that pay claims @ wen due, pls try LEADWAY ASSURANCE COMP. For more info abt leadway insurance email slowzee4deal@yahoo.com
Re: Nigerian Auto Insurers: Do They Ever Pay Up? by lakeside69: 8:19am On Jun 22, 2012
boladez: Insurance companies do pay claims and you need to get a broker to explain all the fine print to you.

However IGI does not pay claims and they are like a large ministry. The company is messed up when it comes to paying claims. The place is run like a family business. I have fought them to a standstill in the past

In the event of an accident;

Thank God for your life
get the car to the garage and do not attempt to effect repairs without taking pictures
Report in writing to the insurance company or the agent
Take pictures including the plate number of the vehicle and ensure dent or breakage is clear.
Fill the insurance claims form and submit to the insurance coy ensure you get an acknoledgement copy
if they do not send the engineers to inspect the car in 3 to 4 days write them and tell them you will commence repairs in the light of their apathy
After the inspection, let them negotiate directly with your garage
They will give you a go ahead to commence repairs
Hopefull you will get paid within one month


Re: Nigerian Auto Insurers: Do They Ever Pay Up? by mbulela: 8:23am On Jun 22, 2012
Novice1: IGI made me go thru hell b4 settling my claim for a fender bender. Hell, I even gotpissed off and did the repirs myself b4 they paid me much later
how can you use such a funny insurer?
my former boss bought shares in their private placement years ago.As at the last time i spoke to him few years back, the process was still not complete.
next time try and use insurers that have a name to protect. like GT Assur and Leadway.
Re: Nigerian Auto Insurers: Do They Ever Pay Up? by mbulela: 8:24am On Jun 22, 2012
exxell: Try GTB assure. I think they have something good. But make sure they explain everything down to earth to you because they can be too proffessional and logical in their language.
folks should get a lawyer to read through the stuff they are signing.
Re: Nigerian Auto Insurers: Do They Ever Pay Up? by niyooah(m): 8:28am On Jun 22, 2012
Like my friend said Insurance company in recent time do pay legitimate Claims.

And also we should kick against this proverb of "If you want to hide something from a Black Man just put it in writing". My people should learn to read their Policy document and also ASK questions if they don't understand their terms. If for any reason you have issue with them do not hesitate to contact their Industry Regulator NAICOM they will be so willing to fight your case without any kobo from you.

From my own experience last year with ZENITH General Insurance they paid 2 of my Motor claims.
Re: Nigerian Auto Insurers: Do They Ever Pay Up? by HOTWATER(m): 8:32am On Jun 22, 2012
I most confess. I have never beem surprised in my life like the day i got my check from Consolidated Hallmark . i had hit a car on third Mainland bridge and i just had third party insurance . i was amazing the the Insurance company behaved professionally and settled the Guy i hit his car . The amount the paid to the guy is about 2000% of the Premuim i paid . I am really grateful to that Company

1 Like

Re: Nigerian Auto Insurers: Do They Ever Pay Up? by DisGuy: 8:47am On Jun 22, 2012
mbulela:
folks should get a lawyer to read through the stuff they are signing.

just for car insurance? haba
Re: Nigerian Auto Insurers: Do They Ever Pay Up? by lakeside69: 8:47am On Jun 22, 2012
I make bold to say that why most people find it difficult to get their claim paid early or even get it paid at all, is the inability of persons who takes or intend to take a policy of insurance to be informed of how insurance work. I strongly advise, pls never walk straight to an Insurance Coy without AN INSURANCE BROKER. It sounds like this, try go to court without a lawyer, u will find out that though u can approach a court for justice without a lawyer and get good judgement but u will get a better judgement with a lawyer if u do.

So is d case of insurance. A broker will make a best of judgement of d good underwriter. In insurance, their is what we call capacity under a reinsurance treaty. Every insurance coy wants to carry as much risk as it can even over their capacity, that is where d case of delay in claims settlement do arise.

I will like to say here as it is practise particularly in d UK, and this is a joint arrangement in d Nigerian Insurance market, no matter ur prefferred choice of Underwriter, pls go thru a registered insurance broker, it gives u peace even up to d point of a claim.

For enquiries e-mail me thru: profonthefield@yahoo.com[quote author=lakeside69][/quote]I make bold to say that why most people find it difficult to get their claim paid early or even get it paid at all, is the inability of persons who takes or intend to take a policy of insurance to be informed of how insurance work. I strongly advise, pls never walk straight to an Insurance Coy without AN INSURANCE BROKER. It sounds like this, try go to court without a lawyer, u will find out that though u can approach a court for justice without a lawyer and get good judgement but u will get a better judgement with a lawyer if u do.

So is d case of insurance. A broker will make a best of judgement of d good underwriter. In insurance, their is what we call capacity under a reinsurance treaty. Every insurance coy wants to carry as much risk as it can even over their capacity, that is where d case of delay in claims settlement do arise.

I will like to say here as it is practise particularly in d UK, and this is a joint arrangement in d Nigerian Insurance market, no matter ur prefferred choice of Underwriter, pls go thru a registered insurance broker, it gives u peace even up to d point of a claim.

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