The constant effort by insurance industry to push compulsory insurance policies beyond the scope of present business control, has to take a shift from gliding on compulsory insurances to placing emphasis on the value those policies offer the policy buyer.
The lack of stable interest by the underwriters to promote the value of the legislation backing compulsory insurances, has become the stumbling block to insurance development. The managing director, SCIB Insurance Brokers Limited, Mr. Shola Tinubu, said, this is one of the things driving and sustaining fake insurance certificates.
Tinubu, said people perceive compulsory insurance as a “grudge buy”, made compulsory by law and they do not buy to seek value; therefore, when the insured risk happens they do not return to make claim.
He also said compulsory insurances, generate fake insurance certificates unlike other insurances like fire or householders insurance policies where fake policies do not exist.. He noted with interest the few instances of fake insurance certificates in policies that are not compulsory which policy holders willingly take up and they have adequate knowledge of cover purchased.
SCIB Insurance Brokers boss who was part of a recent webinar hosted by First Law & Impact Consulting Limited, admonished operators not to concentrate on how to block fake insurances certificates rather, “we should concentrate on how to build value for that document. We have a challenge when people still do not know that they can make claim.”
He reiterated that the concentration should be on value, explaining more to the public what the policy offers and also, make it easy for them to make and collect claim.
Also the executive director, general business, Leadway Assurance Limited, Ms Tola Adegbayi, pointing to the value platform, explains further; “our business is one of trust. We basically sell monetary notes. As we sell the monetary notes, we need to reach out and let people understand that it is money we are selling.”
Adegbayi, said a third party policy is money in the pocket and would cover injured person admitted in a public hospital who would be treated and the cost of treatment taken back from the insurer, adding that insurance is one of the ways the public hospital could be funded.