Despite the huge benefits that come with insurance, it is a fact that many Nigerians particularly the middle and low-income class do not easily subscribe to it.

Excuses abound when people are asked why they have little or no interest in insurance. Their excuses stem from some the negative impression they have about insurance companies.

While some believe that claims do not get paid on time, others blame it on unaffordability of policies.

No wonder that Nigeria presently has a low insurance penetration. In a special report titled, “Africa Market Review: Gearing up for Sustained Growth”, A.M. Best, the world’s oldest and most authoritative insurance rating and information source, comparing Nigeria’s insurance penetration to countries like Kenya and Morocco (with levels of 3.2 per cent and 2.9 per cent respectively)  explains that, with a population of 174million people, Nigeria is still underinsured.

While reviewing Nigeria’s insurance economy at the last annual seminar of the Chartered Insurance Institute of Nigeria (CIIN), the president, Mr. Bola Temowo in a press statement issued in Benin, stated that:  “86.6 million Nigerians have no form of insurance while 1.3 million adults, representing 1.5 per cent of the entire Nigerian adult population, maintain some category of formal insurance cover.”

However, with the introduction of Airtel Insurance, an innovative package which offers free life and hospital insurance to Airtel subscribers, Nigerians may begin to view insurance from a positive perspective and the apathy could be on a gradual decline to eventually boost insurance culture among Nigerians.

Airtel Insurance was launched last year August by the leading telecoms services provider, Airtel Nigeria in collaboration with Cornerstone Insurance Plc. and MicroEnsure.

It was launched to give a sizeable and strategic segment of the Nigeria population access to life and hospital insurance policies.

The policy offers middle and low-income earners the opportunity and access to life and hospital insurance with increasing benefits based on monthly airtime recharge.

The Airtel Insurance policy is accessible to its subscribers across the country between the ages of 18 – 65 years old.  The scheme is endorsed by the National Insurance Commission (NAICOM).

Since its launch, customers of Airtel Nigeria from all walks of life have benefitted from Airtel Insurance especially as the registration process is made convenient through the subscriber’s phone. Beneficiaries commended the Telco for the initiating Airtel Insurance to ease the complications they unexpectedly encountered.

Early this year, Iyabo Sunmola, a fashion designer in Lagos emerged one of the beneficiaries of Airtel Insurance. She received a cheque of N10, 000 to offset her medical bills after she delivered her baby on 7th January this year.

She was presented her cheque at the Airtel showroom at Oba Akran Ikeja, Lagos. Iyabo, excited to have emerged one of the many beneficiaries of the scheme, explained that she first learnt about the policy through a notification message on her phone.

Also recently, Mr. Omotayo Balogun, a transporter with a haulage company, registered through the USSD and forgot about it until he realised he could use the insurance policy.

“Airtel is worthy of commendation,” he said, for caring for its subscribers beyond the services it offers.

Between October and December last year, many Airtel customers also received hospital cash through Airtel Insurance.

Mr. Augustine Peters, a final year Business Administration (DLI) student in University of Lagos; Mr. Adeniji Owolabi, a self-employed Aluminium structural engineer and Mr. Ojo Aderogba, a stockbroker, received their cheques of N50, 000, and N25, 000 and N25, 000 respectively at the headquarters of Airtel Nigeria, Banana Island, Ikoyi, on Thursday 30th October 2014 to receive their claims. A police man also emerged a beneficiary.

Chief Commercial Officer, Airtel Nigeria, Mr. Maurice Newa, explained that the service showed the telecom’s continued commitment towards making lives better for Nigerians. “This further corroborates Airtel’s commitment to creating a robust platform that helps customers accomplish their professional and personal success and goals in life,” he said.

Registration and Payment Made Easy

To subscribe for the free service, customers are expected to register by dialling a code, and then reply the confirmation message with the intended customer’s name, as requested.

Then subscribers are expected to recharge their Airtel line with a minimum of 1000 naira or, 5000 or 10, 000 naira units before the last day of each month to get an insurance cover for the next month.

The amount recharged each month determines the life cover for the next month. 

Airtel Insurance makes it easy for prompt payment of claims when the need arises. Customers can lay claim to their policy by dialling Airtel customer service on 121 for the documents needed and where to submit them. Payment for claims is made within 72 hours after the required valid claim documents are received.

Cornerstone Insurance and MicroEnsure noted their delight in partnering with the world-loved telecoms brand. Mr. Ganiyu Musa, group managing director of Cornerstone Insurance Plc, said: “That we are grossly under-insured as a nation is very well documented; we are glad to be able to provide a platform for millions of financially excluded Nigerians to enjoy the benefits and peace of mind of insurance – for free.”

In the same vein, Mr. Peter Gross, regional director for MicroEnsure Africa said, “MicroEnsure is proud to be leading the world as a mobile insurance provider, and this launch in Nigeria marks a milestone in free mobile insurance offerings.”

He expressed that, “This combination of insurance products, all offered for free, is unprecedented in the industry here, and we take pride in introducing a cutting-edge micro-insurance product here in Nigeria.”

MicroEnsure is one of the fastest-growing insurance organisations in Africa, presently with 11million customers, 6 million in Africa and with 85% never insured before.

It presently offers mobile insurance for Life, Accident and Hospital through technical service provider to telecom in countries like Tanzanzia, Ghana, Kenya, Senegal, Malawi, Bangladesh, Malaysia and Pakistan.

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