The Creation Of Democracy Day And Insurance Developments
- By Ekerete Ola Gam-Ikon
In the 1993/1994 post-election protests, we occupied the stretch of Ikorodu Road to make it difficult for those who wanted to go about their normal business when we couldn’t even reach our offices in Surulere.
At this time in the history of the insurance industry in Nigeria, the Insurance Brokers held sway and as an Insurance Executive in any insurance company, you dare not try them.
Premiums were paid directly to them rather than insurance companies, as we sometimes have today, and you dare not enquire about the premiums. You are better off waiting and praying that the Owner/CEO of the insurance brokerage firms will turn around. This was the state of the insurance industry in Nigeria by 1993/1994!
Most insurance companies were fond of declaring Gross Premium of N500m but had only cash of N100m to show the Board and Shareholders while noting that N400m was OUTSTANDING!
Now, during those riots that followed the 1993 elections on Ikorodu Road and other parts of the country, many insurance companies just could not honour their claims obligations because there was no money in their coffers. Some borrowed funds against the outstanding premiums to meet their obligations.
In some critical cases, the insurance brokers could come forward to pay the claims to avoid any backlash from the client (policyholder). This was a very selective approach to claims settlement.
So, as our democracy evolved towards the creation of Democracy Day, which we celebrate today, the insurance industry was also evolving towards the “No Premium, No Cover” situation we have today.
Crafters of the Insurance Act 2003 saw the need to state it there categorically and prepare the insurance brokers for a new lease of life.
Today, there is still a gentleman’s agreement that the insurance brokers can hold the premiums paid for 30 days. However, the law also recognizes that the moment you have paid the insurance broker, your insurance company has been paid and you are covered.
Democratizing insurance is evolving quite well as policyholders can now get compensated when there are violent riots and strikes where properties are destroyed as we experienced during and after EndSARS.
Now, thanks to Insurtech, you can buy insurance for as little as N125, and you can consider buying the usage-based Motor Insurance for as little as N100, whereby you are only covered when your vehicle is moving. So, insurance products are becoming affordable and accessible having always been available.
Don’t just buy insurance but pay for the one that meets your immediate and long term needs from an insurance company that cares for its reputation and through an insurance brokerage firm that is professionally managed with your interest paramount.
As we celebrate Democracy Day today, we are not on the streets protesting because we have learnt our lessons and have matured Nigerians in the forefront of affairs, and evidently the insurance industry in Nigeria has developed into the engine that provides the economic resilience we enjoy.
We are still shaping Nigeria into a greater nation knowingly and/or unknowingly.
Good morning and happy Democracy Day!
