Insurance Educational Series

Introduction

Insurance penetration is very low in Nigeria. It is estimated to be about 0.3 percent, far below the three percent for Africa.

At 0.3%, Nigeria has the lowest insurance penetration level (measured as insurance gross premium written as a proportion of GDP) amongst notable African countries – South Africa (14.7%), Kenya (2.8%), Angola (0.8%) and Egypt (0.6%).

It is common knowledge that most Nigerians don't understand what Insurance is all about and the financial benefits of taking an Insurance cover.

It is therefore necessary to inform the people on what Insurance is and the need to take an Insurance Policy.

What is Insurance?

Insurance is a legal contract between two parties –individual or entity who receives financial protection (referred to as insured) and the insurance company that promises to compensate the losses (referred to as insurer) in return for the money (premium) paid by the insured. In simple words, insurance provides protection.

Insurance is a risk management mechanism wherein you transfer your risk to the insurance company by paying the required premium (cost).
Insurance is meant to mitigate future financial risks.

How does insurance work?

When you buy an insurance policy, you make payment to the insurance company for the amount of risk cover that you seek. Insurance companies pool the money paid like this by individuals and entities and then use them to compensate for the losses and damages arising out of insured events.

Insurance jargons (Terminology)

Insurer: Insurer is the party in the insurance contract who underwrites an insurance risk or the one who provides you with the financial coverage during an unforeseen event.

Insured: Insured is the party in the insurance contract whose interests are protected by the policy.

Insurable interest: Insurable interest is the prerequisite for every insurance policy. A person or entity seeking insurance has an insurable interest in the subject matter when any damage or loss would impact in financial hardship.

Beneficiary: An individual who is eligible to receive the insurance proceeds if the insured person dies.

Sum insured: Sum insured is the maximum amount that the insurance company will pay you if the insured event takes place.

Excess: Excess is a fixed amount or a percentage of the claim amount that insured needs to pay before the insurer compensates the remaining.

Deductible: Deductible is the pre-decided portion of the loss that is paid by the insured.

Types of Insurance

There are various insurance products available in the market. List of insurance types is non-exhaustive. However, insurance policies are broadly categorised as follows:

1. Life Insurance
2. General Insurance (Non-Life)
3. Halal Takaful (Islamic Insurance)

What is Life Insurance?

Life insurance is an insurance contract wherein the insurance company promises to pay a designated beneficiary a sum of money (sum assured) in exchange for a premium in the event of insured’s death. The life insurance plan provides coverage for a specific period. Apart from term insurance, which is a pure form of insurance, there are many variants in life insurance that also come with savings element attached to it.

Importance of Life Insurance

Life insurance is one of the most important financial products in your portfolio. Following are some of the major reasons for which you need life insurance cover.

1. To avail future financial security for your loved ones even when you are not around.
2. To secure your children’s future educational and other needs.
3. For your family to deal with unpaid debts in your absence.
4. To save for your golden years through pension plans.
5. To achieve your long-term financial goals by way of disciplined investments into an endowment or unit-linked insurance plans.
6. To avail tax benefits under Section 33(4d) of the Personal Income Tax Act (PITA), 2011.

Advantage of Life Insurance

Life insurance products come with numerous benefits depending on the policy that you avail. Here are the key benefits offered by life insurance plans or investments:

Safety and security: Death is unavoidable. But, unfortunate events like death can have a financially devastating impact on dependants. Life insurance provides the needed protection during the demise of the family of the insured. The lump-sum amount can help the family achieve financial stability. Ultimately, by protecting the loved one’s life insurance gives you peace of mind.

Wealth creation: Life insurance plans like money back plans, endowment plans and unit-linked investment plans come with ‘investment’ component attached to it. This helps you in building wealth for you and your family’s future.

Tax benefits: Life insurance is one such financial product that gets favourable tax treatment. The premiums you pay towards life insurance policy qualifies for tax deduction under Section 33(4d) of the Personal Income Tax Act (PITA), 2011 thus help you save tax. Lump-sum proceeds of life insurance are free from income tax.

What is General Insurance?

General insurance is an insurance contract that does not come under the scope of life insurance. General insurance gives protection for the things we value such as our health, vehicles, home, business and many other things. There are various types of general insurance products available to provide protection against every possible risk.

Importance of General Insurance

General insurance is important to lead a risk-free life. Risk is associated with everything that we own and value such as home, bike, car and business. Also, health is our true wealth. It’s important to protect our health also. Following are the reasons that make general insurance an important need.

To avail protection for your valuable assets against man-made and natural calamities.

Insurance keeps you financially prepared for any kind of mishaps.

Insurance for your business helps you maximise the profit and continue to grow without hassles.

It’s important to be insured to deal with emergencies effectively.

Advantage of General Insurance

There are a variety of general insurance products available in the market to cover numerous risks and uncertainties. Following are some of the common benefits offered by general insurance plans:

Provides financial security for your health and assets during unforeseen events.

Lowers your tax burden by way of tax benefits and reliefs.

General insurance provides coverage against a wide array of risks and helps you deal with contingencies effectively and efficiently.

Insurance Products

Auto Insurance

Auto Insurance covers all types of automobiles for both private and commercial uses. Also covered are motorcycles and tricycles.

Auto insurance is one of the compulsory insurance classes and anyone using a motor vehicle on the public highway must have it.

Auto insurance which is the most common of all the known classes of insurance is designed to protect the insured for loss of or damage to his/her vehicle, damage to Third Party property including bodily injury and death to Third Party caused by an accident whilst using their vehicle.

Why do I need auto insurance?

1. It is compulsory; it is the Law! (Road Traffic Act,1950).

2. Provides replacement cost of damage or theft of your car.

3. To provide financial support for you when you damage other people’s property.

4. Re-imbursement of litigation cost

Types Of Auto Insurance

Third Party Auto Insurance

This policy covers death, accidental bodily injury and damage to the property of a third party.


Comprehensive Auto Insurance

The Comprehensive Auto Insurance plan covers the loss or damage to insured vehicles as a result of fire, theft, vandalism, accidental damage or collision. Coverage also includes Legal Liability for death, bodily injury or damage to the property of 3rd parties arising out of the use of insured vehicles.

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Fire and Special Perils Insurance

Small sparks or power surges could lead to a raging flame that could consume a building costing a fortune. It’s not worth the risk.

Fire & Special Perils policy will indemnify the insured against any material damage, loss or destruction to the property due to a fire disaster or any other insured peril.

Virtually all tangible material ranging from buildings, plant & machinery, furniture, household & office content as well as factory stock are insurable items.

The cover under this class of insurance can be extended to include the allied perils of flood, burst, leaking or overflowing water pipes, apparatus & tanks, storm damage, riots & strikes, including malicious damage.

Standard perils covered are:

1. Fire
2. Lightning
3. Explosion
4. Storm, flood and landslides
5. Impact damage by vehicles / animals / aircraft
6. Riots and strikes
7. Bursting of pipes/water tanks, sprinkler leakage

Scope of the Cover

1.Buildings.
2.Contents – furniture, household & office.
3. Stock-in-trade.
4. Plant and machinery.
5. Rent loss.

Who can buy this cover?

Government, Corporate organizations and every individual.

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TRAVEL INSURANCE

Travel insurance is designed to provide cover for risks associated with traveling temporarily outside your country of residence. The available covers are: Schengen, Worldwide Plans, Student Plan, and Pilgrimage Protection (Hajj & Umrah).

FEATURES

1. Provides worldwide coverage
2. Provides cover for accidental demise, health and property
3. 24 Hours assistance services
4. Group discount available
5. Maximum insurable age is 81 years and above with exceptions

WHAT DOES IT COVER?

1. Medical expenses and hospitalization abroad during the period of cover.

2. Emergency medical evaluation.

3. Unlimited transport or repatriation of family member traveling with insured.

4. Compensation for in-flight loss of checked-in baggage.

5. Location and forwarding of personal effects.

6. Compensation for delayed departure.

7. Compensation for hijacking in means of public transport.

8. Trip cancellation expenses.

9. Repatriation of mortal remains.


PREMIUM

The premium varies depending on the country of destination and the number of days to be covered.

NOTE:

1. It's advisable to take out travel insurance, regardless of where you're travelling to.
2. All the Schengen countries have mandatory travel insurance as a requirement.
3. Embassies only recognize/accept Travel Insurance from few selected insurance companies, so don’t just go & pick up travel insurance from unacceptable insurance companies. The client can be refused visa for that.

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Insuranceman why is difficult for the insured party to get compensation?

edoairways:
Insuranceman why is difficult for the insured party to get compensation?

It's not difficult to get compensated whenever an insured loss/peril occur once the required documents needed for compensation are complete.

Presently, most insurance companies in Nigeria settle genuine claims within 3 - 5 working days.

Term Assurance

This is a form of life assurance that offers a basic guaranteed sum assured payable on the death of the policy holder within a fixed number of years (specified term). The sum assured is made payable to the beneficiaries as a lump sum to help protect the beneficiaries against financial hardship that may occur as a result of the death of the policyholder.

Benefits

1. It could serve as additional security to secure loan.
2. It gives peace of mind to the life assured.
3. Affordable and cheap form of insurance for every member of the family.
4. 24 hours life assurance protection for policyholder.
5. To relieve the family of financial commitments associated critical illnesses and death.
6. Prompt disbursement of benefits.
7. To help protect the beneficiaries against financial hardship.

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Motor Insurance

Attention:

Don't buy a 'fake third party insurance' from VIO with ur hard-earned #5000 whereas you can get a valid cover (that you can make a claim of #1,000,000) at the same amount from any insurance company of ur choice. Be informed!

Choose the Motor Policy that you want:

1. Third Party: provides cover if one of your vehicles is involved in an incident in which third party property is damaged, or if someone is injured or dies in the incident.
2. Third Party Fire and Theft: provides cover if one of your vehicles is damaged by fire or is stolen. This policy also covers third party damages and liabilities.
3. Comprehensive: provides cover if one of your vehicles is damaged by fire, theft, vandalism, accidental damage or collision, or is stolen. This policy also protects you against legal liabilities if one of your vehicles is involved in an incident in which third party property is damaged, or someone is injured or dies in the incident.

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CHILDREN EDUCATION FUND (CHEF)

This is mainly a savings plan that assists in providing a lump sum over a period of time for the education of one’s children/dependants. However, if the policy holder dies during the agreed period, the account fund balance plus the sum assured on the plan (outstanding premium as at date of death) is paid to the named beneficiary; but if there is no death, the policy holder gets his total contribution with accrued interest at the expiration of the agreed period.

FEATURES & BENEFITS

1. Policy can be surrendered after a minimum of one year in force, subject to policy terms and conditions.
2. Policy loan, subject to a maximum of 70% of the fund balance after a minimum of one year in force.
3. Policy can be tendered as collateral with any financial institution.
4. Minimum annual contribution of N60,000.00
5. Flexible payment of contribution (monthly, quarterly; half yearly and yearly).
6. Tax exemption on contribution
7. Minimum policy period is five years

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7 COMPULSORY INSURANCE POLICIES IN NIGERIA.

Did you know that there are seven compulsory insurance policies in Nigeria? Yes, the Federal Government has made it compulsory for individuals and businesses in the country to be protected by a few insurance policies. Here they are:

1. Motor Third Party Insurance: People who have been caught by law enforcement agents while driving, for not having insurance, may be able to relate to this. To ensure the safety of road users, the government has made it compulsory for citizens and residents to have motor insurance before plying public roads. It protects you against your legal liability to other road users for (i) Property damage (ii) Death or injury.

2. Employee Group Life Insurance: Are you an employer of labour? This is for you. The employee group life insurance requires that every employer of labour with five or more employees must take out a life insurance policy on each of these employees. The sum is at least three times the annual total compensation for the employee and applies to employees in the private and public sectors.

3. Health Care Professional Indemnity: As a patient, are you aware that every licenced health care provider must obtain insurance before treating you? Health care professionals are required to obtain insurance that will protect their patients in case of accidents or fatalities resulting from professional negligence. A health care provider comprises any registered government or private healthcare practitioner, hospital or maternity centre.

4. Insurance of Public Buildings: Did you know that your favourite shopping mall and hangout spot ought to be insured? The law provides that every public building must be insured against liability in the case of loss, damage to property, death or bodily injury that may be caused by collapse, fire, earthquake, storm or flood. A public building refers to any building accessible to people for educational, medical, recreational or commercial purposes.

5. Insurance of Buildings under Construction: Site workers’ lives matter! This is why the owner or contractor of any building under construction with more than two floors, must undertake insurance from the construction stage. The purpose is to guard the public against construction risks that may be caused by negligence on the part of the contractor; resulting in bodily injury, loss of life or property damage.

6. Aviation Third Party Insurance: Fly with cover! Aircraft operators in Nigeria are not permitted to operate without first undertaking this insurance policy. The policy involves three parties namely; the aircraft operators, the insurance company and the third party i.e. passengers, employees and the public at large. The aim is to provide cover in the case of accidental injury, death or property damage to third parties caused directly by the aircraft.

7. Marine Insurance (Cargo): If you’re planning on starting your own container shipping business, this is for you. Individuals and organisations that regularly engage the use of marine transportation are required to obtain marine insurance. It covers for losses that may occur as a result of marine adventures, from the use of vessels and yachts as a means of transportation.

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Credit Life Assurance

Credit Life Assurance is a policy designed to pay off a borrower's debt if that borrower dies, permanently disabled or loses his job. The amount of the policy decreases proportionately with an outstanding loan amount as the loan is paid off over time.

Credit Life Assurance pays the lender of your loans at a time when you cannot pay due to disability, illness, getting laid off work or death.

Why should you buy credit insurance?

Life is unpredictable. And if you are suddenly unable to work, having your credit insurance policy pick up your loan payments can be a big help at a very stressful time.

 What it covers:

* Death
* Permanent Disability
* Critical Illness of the policyholder
* Loss of job

Benefits to the Lender:

1. Credit Life Assurance will reduce the non-performing loan ratio arising from death of beneficiaries or accidental damage to the assets.
2. The fund will be protected from the cumbersome process of loan recovery arising from death or disability.
3. It will allow the lender to take reasonable and moderate risk while increasing lending portfolios for beneficiaries.

Benefits to the Beneficiaries:

1. It will protect the family of the borrower from loss of assets or burden of debt as a result of the death or permanent disability of the beneficiaries.
2. It gives the beneficiaries peace of mind.

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Professional Indemnity Insurance

Any person or business that gives advice, designs, or offers services in a professional capacity runs the risk of liability for any financial loss or personal harm incurred by a client as a result of such service.

Professional Indemnity insurance provides necessary financial protection for professionals in such a precarious situation due to alleged neglect, error or omission whenever and wherever committed or communicated in the conduct of the insured’s business in their professional capacity.

This policy meets the cost of defending claims and any damages payable. This cover is especially necessary for expert service professionals including:

1. Doctors and medical practitioners which covers registered medical practitioners
2. Medical establishments
3. Insurance Brokers
4. Lawyers| Advocates| Solicitors | Counsel
5. Chartered accountants| Financial accountants| Management consultants
6. IT Contractors & Consultants| Web Designers
7. Estate Agents | Surveyors

PII not only protects against risk and legal expense, it gives the policyholders flexibility and choice in relation to their insurance package giving the confidence that all areas of activities are covered and the peace of mind in the event you are exposed to claims.

What it covers:
1. Your profession
2. Financial loss
3. Legal costs
4. Negligence or breach of duty or care.

In case you never knew:
It is a legal requirement under section 45 of the NHIS Act 1999 and Insurance Act 2003 for medical practitioners in Nigeria to have Healthcare Professional indemnity insurance policy.

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Fidelity Guarantee Insurance

Fraud and stealing in the workplace is on the rise, occurring in even the best work environments. The employers are at risk of huge financial loss which may occur from dishonesty of employees, so it is important for a business to ensure a way of compensating these losses which might affect the business negatively. Fidelity Guarantee insurance can help to minimize and cover the losses.

Fidelity Guarantee Insurance provides coverage against any direct financial loss sustained by the employer through acts of fraud, dishonesty, forgery or theft committed by his employees in connection with their occupation and duties.

This insurance is targeted to cover loss of monies or real properties and merchandise of the employer through dishonest acts of its own employees such as cashiers, finance or sales personnel and other such employees.

Type of Covers

Cover can be arranged on all or selected employees on the following basis:

1. Named basis with specific guarantee amount for each employee.
2. Named basis which guarantee amount floating for all employees.
3. Unnamed basis with guarantee amount floating for all employees in the employment of the insured.

What is Covered?

1. Employee theft
2. Money and securities while on premises or in transit
3. Funds transfer fraud
4. Computer fraud

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Following...

I call on my industry colleagues to flood this thread to enable us collectively enlighten and educate Nigerians on insurance.

@insuranceman you're sighted.

A reinsurance analyst in the building.

Appliedmaths:
Following...

I call on my industry colleagues to flood this thread to enable us collectively enlighten and educate Nigerians on insurance.

@insuranceman you're sighted.

A reinsurance analyst in the building.

@ Appliedmaths, dats the spirit. We hav a duty to educate the people on what insurance is and the numerous benefits of having an insurance policy.

Welcome onboard!

Goods in Transit Insurance

Goods in Transit insurance covers items from theft, loss or damage while they are being transported by vehicle from one place to another in the course of business. Examples include furniture removal and couriers or hauliers working for online retailers.

Goods in Transit cover is additional to commercial vehicle or courier insurance. Those policies cover the vehicle itself, whereas GIT insurance purely covers the contents – the goods carried.

As the name suggests, GIT insurance only covers goods while they are in transit, not while they are in the vehicle at the depot.

Is goods in transit insurance a legal requirement?

GIT insurance is not required by law, but in reality any business offering courier services, removal services or delivering purchased goods would be wise to have it. GIT insurance is also necessary when transporting business equipment between multiple business premises – perhaps while moving premises.

The simple truth is that Goods in Transit insurance is required, above all, because most major customers insist on it, so it becomes impossible to win many contracts without it. Furthermore, the cost of replacing lost or damaged goods could be fatal to the business.

What does Goods in Transit Insurance cover?

If materials, goods or cargo are lost, stolen or damaged in transit, claiming on Goods in Transit cover may make it possible to recover the cost. Transport, courier and haulage businesses are also subject to delays, usually when items are mislabelled, delivered to the wrong address or signed for by the wrong person. If a delivery cannot be made at the time specified, GIT insurance can enable them to claim for the cost to the business – when the recipient tries to recover any costs incurred for example.

Goods in Transit insurance can also include items left in the vehicle overnight, as long as the vehicle is locked and parked in a secure place. Always check the policy for details.

Different policies offer different levels of cover, so it is important to tell the insurer or broker about type and frequency of the cargo being carried, and to be realistic about its value. The right policy will depend on the nature of the business or personal circumstances.

Why do I need goods in transit insurance?

Because most major customers insist on it, and because the cost of replacing lost or damaged goods could easily be fatal to your business.

Many goods in transit policies also include public liability insurance and employer’s liability insurance, making it an extremely efficient and cost effective option for most courier businesses.

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CHILDREN EDUCATION FUND (CHEF)

This is mainly a savings plan that assists in providing a lump sum over a period of time for the education of one’s children/dependants. However, if the policy holder dies during the agreed period, the account fund balance plus the sum assured on the plan (outstanding premium as at date of death) is paid to the named beneficiary; but if there is no death, the policy holder gets his total contribution with accrued interest at the expiration of the agreed period.

FEATURES & BENEFITS

1. Policy can be surrendered after a minimum of one year in force, subject to policy terms and conditions.
2. Policy loan, subject to a maximum of 70% of the fund balance after a minimum of one year in force.
3. Policy can be tendered as collateral with any financial institution.
4. Minimum monthly contribution of N5,000.00
5. Minimum annual contribution of N60,000.00
6. Flexible payment of contribution (monthly, quarterly; half yearly and yearly).
7. Tax exemption on contribution
8. Minimum policy period is five years

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Marine Insurance

Marine Insurance is a type of General Insurance which covers the loss or damage of ships, cargo, terminals, and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination.

Marine insurance is a compulsory requirement for all ship/yacht owners, who are using their vessel for commercial or transportation purposes.

A contract of marine insurance is an agreement whereby the insurer covers against losses incidental to marine adventure.

Benefits of Marine Insurance Policy:

Any type of insurance is always beneficial and helpful for all. Here are some benefits of Marine insurance:

1.Marine Insurance provides all-round coverage against a wide variety of risks faced while at sea.
2. Most marine insurance providers offer claim survey assistance anywhere in the world along with claim settlement assistance.
3. Like other insurance, marine insurance also provides a variety of options and plans according to budgets and requirements.

Marine Cargo Insurance

This class of insurance provides compensation to the cargo owner in the event of loss of or damage to the cargo whilst in course of transit between one country and another either by sea or by air.

In view of the huge capital outlay, marine insurance cover is to protect you against any losses that may occur while your goods/products are being shipped into or out of the country.

Cover can be taken up either as an All Risk Policy – ICC A (covers total or partial loss of goods) or as a Restricted Policy Cover – ICC C (covers total loss only).

The premium rate applied will depend upon the nature and value of goods being imported, the type of cover required as well as the country of origin.

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GROUP LIFE ASSURANCE

Group Life Assurance offers members of a particular group, society, company, club or association a life protection plan that takes care of them in case of any stated eventuality.

The policy helps to meet the needs of employers, employees and workers in social entities and club members or any group of people with a common interest recognized by law against the risks of death, permanent/total disability, critical illness and medical expenses as a result of death or accidents.

Benefits:

1. Group Life Assurance provides a one-off cash payment on the death of the life assured to stated beneficiary (ies).
2. The policy covers all the employees or members of the group
3. It covers death either through natural or accidental means
4. The sum assured (Life Cover) is usually a multiple of the employee’s annual emolument or a defined amount.
5. The policy may be extended to cover named critical illnesses
6. It may also be extended to cover permanent disability, medical expenses, funeral expenses in the case of accident
7. It may also be extended to cover Personal Accident.

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Computer All Risks/Electronic All Risk Insurance

This type of cover falls into two categories:-
1. Material damage section
2. Consequential loss section

Material Damage Section

This section provides cover for loss of or damage to the equipment from accidental causes while situated at the insured premises; it covers damages arising from impact, water damage, malicious damage, and damage due to negligence or carelessness.

Consequential Loss Section

This section covers loss of revenue or additional expenses in using alternative facilities, as well as cost of recompiling lost data.

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Insuranceman:
Goods in Transit Insurance

Goods in Transit insurance covers items from theft, loss or damage while they are being transported by vehicle from one place to another in the course of business. Examples include furniture removal and couriers or hauliers working for online retailers.

Goods in Transit cover is additional to commercial vehicle or courier insurance. Those policies cover the vehicle itself, whereas GIT insurance purely covers the contents – the goods carried.

As the name suggests, GIT insurance only covers goods while they are in transit, not while they are in the vehicle at the depot.

Is goods in transit insurance a legal requirement?

GIT insurance is not required by law, but in reality any business offering courier services, removal services or delivering purchased goods would be wise to have it. GIT insurance is also necessary when transporting business equipment between multiple business premises – perhaps while moving premises.

The simple truth is that Goods in Transit insurance is required, above all, because most major customers insist on it, so it becomes impossible to win many contracts without it. Furthermore, the cost of replacing lost or damaged goods could be fatal to the business.

What does Goods in Transit Insurance cover?

If materials, goods or cargo are lost, stolen or damaged in transit, claiming on Goods in Transit cover may make it possible to recover the cost. Transport, courier and haulage businesses are also subject to delays, usually when items are mislabelled, delivered to the wrong address or signed for by the wrong person. If a delivery cannot be made at the time specified, GIT insurance can enable them to claim for the cost to the business – when the recipient tries to recover any costs incurred for example.

Goods in Transit insurance can also include items left in the vehicle overnight, as long as the vehicle is locked and parked in a secure place. Always check the policy for details.

Different policies offer different levels of cover, so it is important to tell the insurer or broker about type and frequency of the cargo being carried, and to be realistic about its value. The right policy will depend on the nature of the business or personal circumstances.

Why do I need goods in transit insurance?

Because most major customers insist on it, and because the cost of replacing lost or damaged goods could easily be fatal to your business.

Many goods in transit policies also include public liability insurance and employer’s liability insurance, making it an extremely efficient and cost effective option for most courier businesses.

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Get more clearer information before taking action on:

Motor vehicle registration, particulars renewals in all parts of Nigeria, Insurance to cover accident, theft & fire;

Fire policy for ur homes, shops, business premises, schools, boutique;

Marine insurance for imported goods

Public liability insurance for road construction, building construction, schools, hotels, hospitals, offices;

Insurance bond either bid bond, advance payment, or performance bond for contractors;

Group Life to protect ur staff, members of association, & get ur PENCOM cert;

Travel health Insurance to get ur visa & provide protection when you travel abroad;

Goods-in-Transit to protect ur goods during transportation;

Children Education Plan to save, provide funds when needed & secure ur child's education against extreme life risk, accident, terminal illness and demise;

Maximum Investment Plan to save and achieve ur financial goals;

Pensions and Retirement plans like shares, stocks, debentures and Annuity to earn monthly income after retirement for life;

Mortgage Protection Plan to secure your house and household in case of default in repayment of the loan;

Personal Accident to compensate against death, permanent disability & medical expenses;

Group Personal Accident to compensate against death, disability & medical expenses of loved ones, association members, & students;

Professional Indemnity for doctors, nurses, lawyers, architects, accountants, brokers, etc;

Loss of Employment Scheme to pay children's school fees during redundancy;

Special individual or group insurance, for KEYMAN or KEYMEN to meet and sustain future desire.
Thank you, thank you, thank you

FRANCISCO,
FINANCIAL RISK ADVISER, Specialised in pensions, Retirements plans, Insurance plans, Assurance plans, AutoRegistration and Asset management.
07033895094

Machinery Breakdown Insurance

The insurance is against unforeseen and sudden damage to the insured machinery from such causes as

1. Faulty materials, design, construction or erection, vibration, mal-adjustment and mal-alignment.
2. Defective lubrication, loosening of parts, abnormal stress, molecular failings, self-heating, centrifugal force.
3. Excessive electrical pressure whether due to atmospheric electricity or otherwise.
4. Failure of insulation, short circuits, open circuits or arching.
5. Failure of connected machinery or protective devices.
6. Lack of skill, carelessness or malice of persons whether in your employment or not.
7. Falling, impact, collision and the like.
8. Storm, tempest, obstruction or the entry of foreign body.

The main elements of the insurance are thus electrical and mechanical breakdown, and accidental damage from extraneous causes, while the sum insured on each item should be the replacement value to avoid under insurance.

These are few examples of the kind of items suitable for this type insurance. Boilers, Air Compressors, Refrigerating Plant, Electrical Motors, Transformers and Switchgears, Process Machinery and Lifting Plants e.g. cranes, forklifts, etc.

There are common causes of machinery breakdown such as:
1. Carelessness of the machine operators
2. Overheating due to the failure of lubrication or low water conditions for boilers
3. Overloading by underestimating the weight of a load
4. Defective safety devices.

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MONEY IN TRANSIT INSURANCE

The policy will provide indemnity for loss or damage to Money-in-Transit from all accidents and/or misfortune including Money-In-Safe, strong room, and/or on premises. Cover will be extended to include armed hold up.

Notes:

1. Please be informed that the insurers will only provide Money-In-Safe cover if money is securely locked in the Safe and not in a cash box or any drawer.

2. Money on premises cover will only be restricted to the period when the office is open for business. Immediately the office is closed for business, money on premises cover automatically ceases until next day when the office is again open for business.

3. This Insurance is always on declaration basis and you are obliged to keep records of all movement of money and to submit a declaration of all money in transit by the end being in excess of the provisional premium, you will have to pay the difference while a refund will be granted if otherwise.

4. Under this Insurance, cover will be excluded for money extracted from the Safe where the keys to the Safe are used except such keys have been obtained by threat or violence. Furthermore, the keys to the Safe should not be left on the premises or around the vicinity of the Safe at all time.

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Group Personal Accident Insurance

This policy provides cover for Death, Permanent Total disablement, Temporary Total Disablement resulting from violent, accidental, external and visible means and Medical Expenses for the employees of the insured.

The need for Accident cover for your staff has been tragically emphasized by certain serious injuries which have occurred in the recent times, some of which have resulted to permanent disablement, and in most cases, gave no entitlement to compensation.

This insurance will therefore produce a guaranteed scale of benefits for specific disabilities, irrespective of any legal liability and payable without prejudice to any other remedy (Gratuity, Life Assurance benefit or Pension benefit).

The cover is always on 24 hour basis, irrespective of whether the employee is on duty or not, the premium rate will depend on the categories of staff and the selected benefits.

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7 COMPULSORY INSURANCE POLICIES IN NIGERIA.

Did you know that there are seven compulsory insurance policies in Nigeria? Yes, the Federal Government has made it compulsory for individuals and businesses in the country to be protected by a few insurance policies. Here they are:

1. Motor Third Party Insurance: People who have been caught by law enforcement agents while driving, for not having insurance, may be able to relate to this. To ensure the safety of road users, the government has made it compulsory for citizens and residents to have motor insurance before plying public roads. It protects you against your legal liability to other road users for (i) Property damage (ii) Death or injury.

2. Employee Group Life Insurance: Are you an employer of labour? This is for you. The employee group life insurance requires that every employer of labour with five or more employees must take out a life insurance policy on each of these employees. The sum is at least three times the annual total compensation for the employee and applies to employees in the private and public sectors.

3. Health Care Professional Indemnity: As a patient, are you aware that every licenced health care provider must obtain insurance before treating you? Health care professionals are required to obtain insurance that will protect their patients in case of accidents or fatalities resulting from professional negligence. A health care provider comprises any registered government or private healthcare practitioner, hospital or maternity centre.

4. Insurance of Public Buildings: Did you know that your favourite shopping mall and hangout spot ought to be insured? The law provides that every public building must be insured against liability in the case of loss, damage to property, death or bodily injury that may be caused by collapse, fire, earthquake, storm or flood. A public building refers to any building accessible to people for educational, medical, recreational or commercial purposes.

5. Insurance of Buildings under Construction: Site workers’ lives matter! This is why the owner or contractor of any building under construction with more than two floors, must undertake insurance from the construction stage. The purpose is to guard the public against construction risks that may be caused by negligence on the part of the contractor; resulting in bodily injury, loss of life or property damage.

6. Aviation Third Party Insurance: Fly with cover! Aircraft operators in Nigeria are not permitted to operate without first undertaking this insurance policy. The policy involves three parties namely; the aircraft operators, the insurance company and the third party i.e. passengers, employees and the public at large. The aim is to provide cover in the case of accidental injury, death or property damage to third parties caused directly by the aircraft.

7. Marine Insurance (Cargo): If you’re planning on starting your own container shipping business, this is for you. Individuals and organisations that regularly engage the use of marine transportation are required to obtain marine insurance. It covers for losses that may occur as a result of marine adventures, from the use of vessels and yachts as a means of transportation.

Do you belong to any of these categories and you still don’t have insurance?

Don’t wait to get caught and penalised before you take action. Do the right thing, right now!

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You are only stating the advantages. Am sure there are some disadvantage, kindly state them too.

Joenath:
You are only stating the advantages. Am sure there are some disadvantage, kindly state them too.

@Joenath, there are really no disadvantages of having an insurance cover. Rather, the benefits are just too much. The only problem we have as citizens is lack of proper information & awareness.

Insurance saves you money, stress and guarantees peace of mind.

Contractors’ All Risk Insurance

This type insurance covers civil construction projects, such as residential/commercial buildings, theatres, factory sheds, warehouses, roads, bridges, dams, reservoirs, tunnels, oil/gas pipelines, water/sewage disposal works, etc.

The cover applies during the construction period and can be extended to the maintenance period. Most contract agreements lays on the contractor for losses, damage or injury. It is solely the contractors’ responsibility to ensure that adequate insurance in place for the following:

1. Damage to the works and to the properties at the site (owner’s or contractor’s), against “all risk” of physical loss of damage both to the work itself (under construction or completed), and for your plants and equipments as well as for material destined to be incorporated into the works.

2. Loss or damage from a cause occurring prior to the commencement of the period of maintenance and for any loss or damage occasioned by the contractor in the course of any maintenance operations.

3. Damage to property or persons. Clauses do not refer to legal liability but simply asks for indemnity against any damage, loss or injury, which may occur to any property.

It is often recommended that the policy should be extended to cover:

1. Transit from storage area to site

2. Overtime, airfreight and emergency charges to speed up replacement work consequences of faulty workmanship, defective materials or faulty designs.

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Consequential Loss or Loss of Profit Insurance

This covers the financial loss to your company, resulting from reduction in earnings or increased cost of working following damage by an insured perils covered under Fire/Special Perils Insurance.

What is covered?

1. Net profit which would have accrued if the fire incident/special peril had not happened.
2. Fixed charges as interest, rents rates etc. which are compulsorily payable although no business activities is taking place in the premises again. These are called standing charges in the policy.
3. Expenses which will help to facilitate the resumption of normal business and minimize loss of net profit e.g. hiring of temporary premises, engaging the services of extra staff or working overtime. This is called increased cost of working.
4. Wages of staff whose services will have to stop immediately due to the fire damage – retained wages of skilled employees whose services are needed/for quick return of the business activities of the company.
5. Auditors’ fee of the Auditors employed to prepare any claim under the policy.

This cover is always arranged to cover an agreed sum under the following headings:

1. Gross profit
2. Wages
3. Auditors Fees

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