Operator Tasks Insuring Public to Read their Policies

Mr. Adewunmi Adewole, managing director of Best Deal Insurance Brokers Limited, has recommended the use of insurance brokers for the insuring public whenever they are taking up any insurance policy.  This is the most logical way to avoid the pitfalls that may arise from unpaid premiums and other misunderstanding between the insurer and the insured.  The veteran insurance practitioner noted that in his three decades of practice, he has learnt that most people don’t read insurance policies.  Tracing the sad development he says “I have been on this job for the past 29 years and it’s quite painful to observe that, even among my friends, are those who don’t read their policies.”  He advised the public to always be attuned with insurance policies and liaising with their broker to ensure a fair deal.  “People should lean to take the insurance contract seriously.”
Adewole noted that, over the years, he has learnt that most agents sometimes don’t go into the nitty-gritty of dealing with the public.  Their major concern he says, “is to earn their commission and off they go, leaving the insured at the mercy of the insurance company”.
He called on government to assist the brokers noting that, “most businesses of the underwriters come from the Brokers.” Government should do something for the brokers just like they have done in the area if pension with the setting up of Pension commission (PENCOM).
Lamenting government’s lips service to the industry, the veteran broker wants government to make the insurance of public buildings compulsory in Nigeria .
According to him, “if this is done, insurance business will pick-up and all insurance companies will smile.
He also wants the Ministry of Finance to work with National Assembly in other to enact relevant laws aimed at making insurance for public building compulsory.
“The insurance companies are loosing lots of funds through many unregulated areas.  For instance, government ought to enforce the rule that any employer who has at least five people in his payroll must take a group insurance policy.  Those who are unable to do so should at least take a pension scheme.”
He frowned at the activities of the unlicensed insurance agents and brokers who are milking the industry dry.  According to him, the sector is loosing millions of naira to these unlicensed agents and brokers. “These unscrupulous elements give out fake certificates to people without caring about the implications.” He stressed that in the nation’s licensing offices, “there is no insurance company’s certificate that they cannot procure,” adding that because of the low level of awareness, “even the police cannot distinguish between the original and fake certificates.”
This problem is further compounded by both the lukewarm attitude of government and the intrigues in the industry which he said, “has encouraged the influx of fake and cheap certificates.” Adewole also identified   third party insurance, as another area that has fallen to unregulated scene.  “What operates now” he says is that motorist pay between N1, 000 to N5, 000 to obtain third party certificate.  In his word, “rather than going for these cheap and often fake certificates, people should go for a comprehensive policy”.  The advantage of this, he explains, is that “it covers your car, liability against third party and bodily injury or death to the third party”  He called for an aggressive collective action against these fake licensing operators, noting that “with comprehensive cover, one is sure that if his car is stolen, the insurance company will pay.”
He blamed government’s insensitivity as one of the problems bedeviling the industry.  “For instance, why should government wash its hands off insurance ownership?  They sold off their shares in NICON.  At the moment, it’s only in the Nigeria Agricultural Insurance Company (NAIC) and to some extent, Niger Insurance, that government still has some interests.”
The insurance boss advised the insurance public to always pay their premiums.  He likened non payment of premiums to building a house without providing the means or paying the bricklayer,” adding that, “no insurance company will use its own money to pay when the need arises.”
He emphasized that brokers are necessary as they “are trained to guide the insured; noting that “there is a clause in the business which says no premium, no cover.”  Once this is applied, he said, most insurance companies are not likely to pay unless it’s a large claim, which might even lead to litigations.  One reason why the public should go through the broker, according to him, is that they know the insurance companies in and out.
“That is why the banks are speedily taking up many traditional insurance grounds in addition to their core duties.”  What makes this issue of grave concern to all is that Nigeria belongs to the global community.  Therefore, it is expected that the rule of he game is applied as it is done elsewhere.
He explained that in the western world, nobody toys with insurance.  In South Africa , for instance, insurance practice is highly developed.  Besides, even in some West African Countries of which Nigeria is one, insurance business is highly regarded.
In the last decade, it has been established that business in Nigeria is loosing to the smooth operational environment in the sub region including insurance.
He called for an awareness campaign in order to make the public develop interest in insurance.  The public also, he says “should brace up to the challenges by insuring all insurable issues such as property, car and even life.”