₦airaland Forum

I have always wondered how insurance claim really work in Nigeria. Most car owners or motorcycle owners have insurance or at least pay for it as part of "document of the vehicle ".

Why then 2 people fight and throw hands when they "jam themselves "??

Also, I actually have not heard of anyone here in Nigeria filing insurance claim for their vehicle.. it seems like everyone leaves things for God?

Easyincome24:
Infact, you nail it here. Insurance company is another gimmick by the corporate world to swindle the people they are to protect. When you want to make a claim of your insurance, policy changes, you won't be notified earlier until the event happens.
If you are blessed, go for it, but also have an emergency wallet which may be separate from insurance to mitigate any delay that may not be promptly attended by your insurance company.

If you insure your property, you dare not miss a monthly payment else your policy will be cancelled.or you'll be hit with stiff penalties. By the time you now experience theft or destruction of that property, they start dribbling you around, looking for a loophole where they'll disqualify you from collecting your own money. Fear Nigerian insurance companies o

Badgers14:
I have always wondered how insurance claim really work in Nigeria. Most car owners or motorcycle owners have insurance or at least pay for it as part of "document of the vehicle ".

Why then 2 people fight and throw hands when they "jam themselves "??

Also, I actually have not heard of anyone here in Nigeria filing insurance claim for their vehicle.. it seems like everyone leaves things for God?

People fight because they are not aware of the benefits of the insurance document in their hands.

People file claims everyday , insurance companies in Nigeria pays billions in claims every quarters. The reports are on the internet. Most companies and businesses don't do without insurance, and they make claims regularly.

dominique:
If you insure your property, you dare not miss a monthly payment else your policy will be cancelled.or you'll be hit with stiff penalties. By the time you now experience theft or destruction of that property, they start dribbling you around, looking for a loophole where they'll disqualify you from collecting your own money. Fear Nigerian insurance companies o

You're right about the dribbling but note that the insurance policy document contains lots of terms, warranties and conditions that the customer should or ought to comply with, violations of these terms and conditions may give rise to accident or damage happening and then the insurance company may deny paying out to settle the customer.

The problem is most customers don't read the policy and when claims happens there, the insurance company will point out where they erred.

emmabest2000:
Nigerians sees INSURANCE as a waste of money 💰

Some will argue with you that what if he or she pays for insurance for 10 years without any incidents happen within the years, do you know how much I have wasted ?

Ignorance is a disease

You are wrong. Nigerians will do insurance if they truly get insured . Most do not pay a dime when insurance is to be collected .

Basically, instant gratification, then add to weak laws and weaker protection. No one wants to lose everything but will still take that chance than give a company too much leverage.

People will flock to savings and loan apps than they will ever go to insurance products, because they don't have any immediate benefit.

Not to mention that insurance is also a high-risk business for the owners, so they have to be careful and balance the costs. And that means they will only target those who could afford it.

Ankakh:
Basically, instant gratification, then add to weak laws and weaker protection. No one wants to lose everything but will still take that chance than give a company too much leverage.

People will flock to savings and loan apps than they will ever go to insurance products, because they don't have any immediate benefit.

Not to mention that insurance is also a high-risk business for the owners, so they have to be careful and balance the costs. And that means they will only target those who could afford it.

You're right.

Here in Nigeria, most individual buyer of insurance will ask what do they gain after one or two years of paying premiums and there is no claim?

Most people do not know that a single claim can swallow years of premium paid. Also, the peace of mind that insurance gives in case life happens is priceless.

dominique:
Because insurance companies are the same all over the world. Quick to collect your money but when it time to retrieve your money from them, na war! The only insurance policy that actually works is employees health insurance which is covered by the companies. If you do HMO out of your pocket, you'd be surprised that your HMO only covers malaria and typhoid when you get to the hospital

Even the ones covered by the companies will at some point be giving excuses and evading taking responsibility. Insurance is largely a fraud.

Stephen0mozzy:
If there's one thing we learnt about, even in secondary school those days was "Insurance" - a definition that still rings in my head is "Insurance is protection against potential future loss".

There are different insurance products and offerings in the world and Nigeria, from life insurance to health, to fire, to vehicle, just to name a few. But it appears the only time people bother about insurance is when bureaucracy of certain registration makes it mandatory, but after which they don't renew it.

You hear news of people losing their lives because they can't afford hospital bills, when there's life insurance.

You hear news of people losing their businesses to fire and they're literally sent into poverty, when there's fire insurance.

You hear people whose family sink into extreme poverty when they lose the breadwinner of the family, when there's life insurance.

I'm genuinely curious. Why don't we take insurance serious in this country?

And on a lighter note, why are we not hawking insurance services to people as we're hawking Dangogo Shares?

If you're in the field of insurance, please share your insights, on the pros and cons.

Public distrust and low participation in the Nigerian insurance sector are major challenges, driven by historic issues with claims settlement, poor awareness, and economic constraints.

Many individuals in Nigeria are skeptical of insurance due to previous experiences, either personal or through stories they heard from others, where insurance companies did not pay out claims or extended the claims process with unnecessary bureaucracy.

Listed below are some of the reasons why many Nigerians avoid insurance products:

1. Trust and Claims Settlement Issues

- Delayed or Unpaid Claims: This is the single biggest barrier. When people feel that insurers find "fine print" loopholes to avoid paying valid claims.

- Complex Bureaucracy: The paperwork and lengthy verification processes required to get a payout often frustrate policyholders, leading to a perception that companies are quick to collect money but slow to give it back.

2. Economic and Structural Barriers

- Disposable Income Limits: With high inflation and a challenging economic climate, many Nigerians prioritize immediate survival needs (food, housing, education) over a future risk that may or may not happen.

- Inflation Eroding Value: High inflation rates mean that a payout promised today might buy significantly less by the time a claim is actually made years down the line.

3. Cultural and Educational Factors

- Low Insurance Literacy: There is a lack of deep awareness about how different insurance products work, what is covered, and what rights the consumer has.

- Cultural and Religious Beliefs: Many people rely heavily on faith, community networks, or extended family support systems to handle emergencies, viewing formal insurance as unnecessary.

Insurance itself is not even assured in naija, na person when dey alive dey worry of insurance. Do you what people are passing through?

dominique:
If you insure your property, you dare not miss a monthly payment else your policy will be cancelled.or you'll be hit with stiff penalties. By the time you now experience theft or destruction of that property, they start dribbling you around, looking for a loophole where they'll disqualify you from collecting your own money. Fear Nigerian insurance companies o

That is why we need a law that can protect the people against such. I'm aware it is not usually same in other countries but Nigeria is number one in fraud so expect such from our insurance firms.

Like Insurance, like Pension in Nigeria


All of them dey the same boat.


Crooks through and through

Hopez456:
Insurance works in Nigeria. With the new recapitalisation and the regulator in town, insurance firms are sitting tight.

You must be working in an insurance company.

dominique:
Because insurance companies are the same all over the world. Quick to collect your money but when it time to retrieve your money from them, na war! The only insurance policy that actually works is employees health insurance which is covered by the companies. If you do HMO out of your pocket, you'd be surprised that your HMO only covers malaria and typhoid when you get to the hospital

My brother NHIS is a replica of what the Bible say it will be easier for a camel to pass through the eye of a needle than a rich man.

I have answered this question here before
So let me say it again
In a very religious and conservative country like Nigeria selling INSURANCE is a massive risk because majority believe in spiritual insurance so the best any insurance company can do is to target organizations, high net worth businesses and business people
Simple
It's not that hard
🚶‍♂️🚶‍♂️

insurance is good. most especially motor vehicle insurance.

0taPiaPia:
This is one of the reasons but the worst is with the government hospital. To get clearance for the said services you require, you might die in the process or develop another ailment because of stress. You will see just few people at the desk attending to hundreds.... sometimes your request isn't sent same day because of backlog so it becomes a better option to pay from your pocket if you have the means

Mmm.

2 things I see as nonsense in todays nigeria
Saving for retirement
Insurance
Only going to school to receive education and not learn a skill.
Investing in stocks with money for survival.

You mean those thieves?

Liability is already personal so why should I pay somebody to pay my liability?

They are all thieves and the same people who burnt businesses so that people could start paying them.

So, insurance and banks is just like paying the mob not to burn your business

LZAA:
I have answered this question here before
So let me say it again
In a very religious and conservative country like Nigeria selling INSURANCE is a massive risk because majority believe in spiritual insurance so the best any insurance company can do is to target organizations, high net worth businesses and business people
Simple
It's not that hard
🚶‍♂️🚶‍♂️

Insurance is a scam.

Why would fire just catch my building if it is not that evil somebody from the insurance company came and did it?

Ashirioluwa:
Public distrust and low participation in the Nigerian insurance sector are major challenges, driven by historic issues with claims settlement, poor awareness, and economic constraints..

The most important one is that insurance is WRONG!

If no one is wickedly enter faring in my business, nothing bad would happen. But bad things happen because bad people (bandits/mafia) have come

Insurance companies in Nigeria started 419 in the 70s
They always look for one flimsy excuse not to pay their depositors.
That is the evolution of 419 in Nigeria.

Not true. I had a car accident in dec 28 2024 and by Jan 17 2025 my insurance company paid me and I was able to get a better car. Insurance is good not just in Nigeria!

Dtruthspeaker:
Insurance is a scam.

Why would fire just catch my building if it is not that evil somebody from the insurance company came and did it?

OP shey you don hear

Stephen0mozzy:
All of you up there are citing the PROBLEMS. What solutions are you proposing?

Nor be everytime complaining about institutions, how do you think we can change the narratives?

People all over the world enjoy a working insurance industry. Dem nor swear for us.

Giving the solution can start from you, you be human too and you are part of us Nigerians.

emmabest2000:
Nigerians sees INSURANCE as a waste of money 💰

Some will argue with you that what if he or she pays for insurance for 10 years without any incidents happen within the years, do you know how much I have wasted ?

Ignorance is a disease

even if an incidence occurs ,e no sure for you that you would receive shishi....go and ask

LZAA:
OP shey you don hear

emmabest2000:
Nigerians sees INSURANCE as a waste of money 💰

Some will argue with you that what if he or she pays for insurance for 10 years without any incidents happen within the years, do you know how much I have wasted ?

Ignorance is a disease

The first thing is that, is something supposed to happen? Is it normal for something to happen?

Clearly, you are an insurance marketer

Stephen0mozzy:
All of you up there are citing the PROBLEMS. What solutions are you proposing?

Nor be everytime complaining about institutions, how do you think we can change the narratives?

People all over the world enjoy a working insurance industry. Dem nor swear for us.

Insurance is a scam. It does not satisfy reason why I should pay someone to pay for my personal liabilities if those liabilities occur naturally..

And by nature, disasters do not easily fall on a person, so it is very suspicious that a person would go into insurance business. Na im dey cause the disasters

vicoloni:
Not true. I had a car accident in dec 28 2024 and by Jan 17 2025 my insurance company paid me and I was able to get a better car. Insurance is good not just in Nigeria!

First you must be talking about about not here in Nigeria and, if here, then you are just a person they want to use to deceive your neighbours.

Common warranties, companies do not find it easy to keep is it now to replace your car.

And anyway, if you could pay premiums for your car, it means you could have bought the better car they gave you if you really wanted it after all the premium for the better car is definitely going to be better. So, already you are rich and so you can be careless and dash insurance companies your monies for them to cover your carelessness.

Tizu:
Insurance companies in Nigeria started 419 in the 70s
They always look for one flimsy excuse not to pay their depositors.
That is the evolution of 419 in Nigeria.

Up to the 90's sef. And they too caused disasters. Can't forget how they stole my neighbour's brand new beatle in front of his office at Apapa 2 weeks after he bought it like juju and it was never found.

And if you remember, throughout that time it was only brand new cars that were stolen. People now tried parking the new cars at home so armed robbers followed them home and told them to give them the keys and vroom moto don go never to be seen again.Even Anini stole brand new cars. People

When strange things happen somebody is making then happen. Insurance company is a robbery business and they are create insecurity to get business

I went for Stanbic Insurance Onboarding class for three days. That was this year.

I just went there to pack rice, chicken and drinks.

I didn't even bother learning anything because at the end of the day, Nigerians still won't apply for insurance policies.