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How insurance industry can win public confidence

The insurance industry can only win the confidence of the general public when they are able to meet the obligation of what they insure to people.

Managing director of MaxiFund Investment Limited, Mazi Okechukwu Unegbu, who stated this to Vanguard noted that if not for the law, nobody will insure anything interms of property and vehicle because of the negative way insurers started their business in the country.

According to him, in Nigeria nobody believes in insurance as such people are only compelled by law to buy one form of insurance or the other, stating “When operators in the insurance industry are able to meet the obligation of what they insure to people, people will now have confidence in doing business with them.”

Unegbu reiterated that the problems of insurers started when people will insure with them and they will never tell them exactly what the conditions are for enshrined in such policies only for them to make obvious the said conditions during a time of claim.

In his words, “Insurers have to have a code of conduct that maybe if Mr. or Mrs. X is coming to insure, they state the terms, and not when the event has finished happening, you now say this is why we cannot pay.”

He posited that it is very important that insurance companies educate the person who is coming to insure stating “Look at what I am selling to you which is A, B, C, under the condition of 1, 2, 3. The man buys A, B, C under condition 1, 2, 3 and when the event happens, you now say there is condition 5, 6, 7 which you didn’t see. That’s wrong.”

Unegbu noted that insurers need to make it clear what they are selling so that people will know from the onset rather than people resisting them, adding that such actions will make people voluntarily want to go to an insurance company to get insurance policies.

He lamented that people insure their houses only when they want to go to take a bank loan because banks require earthquake and tornado policy. They just want to use it to get a loan not that they believe in insurance and that is not right.


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