Leadway Assurance Harps On Benefits Of Micro Insurance
LEADWAY Assurance Company Limited has listed the many benefits of micro insurance products especially in meeting the needs of the insured as well as deepening industry’s penetration.
Explaining the benefits of one of the micro insurance products of her firm, at a training workshop organized by Leadway Assurance for Insurance Journalists in Lagos, recently, the Executive Director, General Business, Adetola Adegbayi, said micro insurance is designed to meet the need of every Nigerian.
She said Hospital Cash Insurance Plan is a cover that is activated in the event of hospitalisation of the insured person due to illness for a consecutive period of more than two days, a daily benefits is payable up to a maximum of 20 days during the policy period.
In the event of hospitalisation arising out of accidental injury for consecutive period of more than two days, she said, a daily benefits is payable up to a maximum of 15 days during the policy period.
In this instance, she said, those under the basic plan and are hospitalised due to illness, will be getting N4,000 claims per day throughout the duration of their stay in the hospital provided its not more than 20 days. Those under the Classic plan would be entitled to N7,500 per day while those under the Plus plan would be entitled to N10,500 per day.
She disclosed that the company also has Personal Accident Plan, which covers medical expenses arising from accident and Home Flexa-Silver Insurance Plan, saying, these were mass market policies aimed at deepening insurance penetration across the country, promising that company would not relent on its oars until most Nigerians are insured.
Earlier in his lecture, the Head, Retail Business, Leadway Assurance, Tunji Amokade, had said the future of insurance industry lies in the retail market, noting that, the commercial market is saturated.
Amokade, who was speaking on ‘Micro Insurance Business in Nigeria’ at the training, added that despite the huge population the country is blessed with, low insurance penetration is still a major issue.
“The problem of penetration is because we are cash-based economy unlike other countries that are credit-based,” he said. The success story of insurance in South Africa, Kenya, Morocco, and so on, he said, was as a result of their credit-based economy, stating that until Nigeria borrow a leaf from these countries, low penetration will continue.
While calling for institutional structure that allows credit to thrive, through this, he said, insurance can be incorporated into some credit-based services, thereby, increasing insurance adoption and contribution to the nation’s economy.
Charging insurance companies to offer good value for money for their clients, he urged underwriters to increase their visibility through effective use of technology as well as building more offices where there are none.
The industry has been targeting the upper class, but the market now resides in the middle and the lower classes, he said.
