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However, in choosing an insurance cover, you must do your due diligence to be sure you do not take out one that you will regret later. This is important as there are many Insurance brokers and agents out, both genuine and fake, on the streets who will not waste any time to sell you on one of their insurance covers, so long they consider it profitable. Here are 4 tips for you to keep in mind before taking out any insurance cover, no matter how affordable it may seem.
Insure Only What Needs Insurance
The whole essence of insurance is simply to provide you with some form of cover for risk and to ensure you do not lose out totally in the event of loss or damage. That said, it is important therefore that you only take out a cover for the things that need an insurance cover. In determining the things that need insurance cover, two things you need to consider are the risks involved and the value of the object. If there are little or no risks involved, then an insurance cover may not be needed for it. Also, if the item or object holds no reasonable value, then you may need to rethink taking out an insurance cover for it. In the two instances highlighted here, you will do better managing the risks yourself. Find out how to do this effectively in this post.Sign up to the Connect Nigeria Daily Newsletter
Do Your Research
The National Insurance Commission (NAICOM) is the primary body charged with the regulation of the insurance business in Nigeria. The commission is doing a great job in ensuring the regulation of the insurance industry in Nigeria and the protection of consumers’ interests according to international best practices. However, the commission has been criticized in time past for not doing much to curb the proliferation of fake insurance companies into the industry. So, as the number of insurance brokers, agents and companies seem to be on the increase every day, you must carry out your research before taking out an insurance cover. Research into the agent, broker or company before buying insurance. This is to ensure you do not fall prey to any of the many fake insurance agents, brokers and companies out there. The National Insurance Commission has lists of licensed insurance companies and brokers on their website www.naicom.gov.ng, you can check these. Also, the commission has a portal where you can check the validity of any insurance policy purchased.Ask The Right Questions
In deciding on the right insurance cover to take, you must be asking the right questions. Questions such as the conditions of the insurance cover, the premium to be paid, how and who to call to make your claims, will go a long way in saving you from regrets.Study And Understand The Contract
An average Nigerian rarely read a written contract or agreement before signing. Think about when you went to open an account in the bank and you were given several forms to fill, do you take out time to go through it before filling out? An insurance cover comes with a contract and this contract is what will specify the various conditions of your insurance and is the basis upon which any court of law will hear your case in the event of any dispute with your insurance provider. So, you must do your due diligence and study the contract before signing it. Remember, when it comes to a contract, a lawyer will help you see through the letters and help you understand the provisions. Featured image:AARPGot something you want to read about on our platform? Contact us: editor@connectnigeria.com
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