By ZAKA KHALIQ
As the rate of suicide continues to grow, insurers warn that those contemplating suicide who may first go and take out life insurance policy and then go home and commit suicide hoping to earn death benefits are thinking amiss as suicide is not an accident. If a life insurance holder must commit suicide, such a person the insurers say must by law hold on for two years after taking out the policy if he must even get a look in from his insurers. ZAKA KHALIQ, Lagos writes
With the rapid increase in the rate at which people commit suicide in the country, life insurance policy holders who commit suicide would have to forfeit their claims, especially, if it happens within the first two years of their taking out such policies, LEADERSHIP Weekend can exclusively reveal.
In the last one year, there have been about 18 reported cases of suicide, while hundreds of other cases have gone unreported; a development which medical experts have termed ‘psychological’, although, the worsening economic situation in the country has been named a contributory factor.
LEADERSHIP Weekend’s investigations revealed that under the insurance contract, suicide, which is a conscious, self-inflicted act, is not covered, especially, in the first two years of a life policy. Hence, no matter the kind of life assurance policies suicide victims might have within this period, they would have to always forfeit the claims.
The suicide clause in insurance law says that: “A life insurance company won’t pay death benefits if the policy-holder commits suicide within a specific period of time after their policy takes effect. In most countries (of which Nigeria is one), that period is two years. However, after those two years are up, the suicide clause no longer applies.”
In this instance, investigation revealed that the family of the deceased would be deprived of the death benefits of the life cover the victims subscribed to, while he/she was alive. In a similar vein, it was learnt that, should a suicide attempt fail, with the victim sustaining injuries, the life policy would not apply, as well.
Some insurance plans, investigation revealed, don’t cover medical costs related to suicide, while some health insurance plans make the experience worse by refusing to cover medical costs for injuries that are related to suicide or an attempt.
Speaking on this development, the president of the Nigerian Council of Registered Insurance Brokers (NCRIB), Emmanuel Kayode Okunoren, said suicide is a psychological thing that affects individuals and, thus, the definition of insurance and accidents (risk) do not include suicide.
“The first rule in insurance is that you cannot make a profit from a loss, you cannot benefit from a crime and if you do anything that is self-inflicted, it is against the definition of accident covered under insurance contract. The definition of accident that we all know is that it must be an accident happening fortuitously and not one designed or expected. That said, suicide by itself, would render any policy that you have irrecoverable.”
He added that if it was proven that a death occurred as a result of suicide, that policy would be null and void. “You can’t benefit from a crime, unless its cause is unknown. If you also have a suicide note, that policy has been hampered,” he pointed out.
The managing director, Anchor Insurance Company Limited, Mr. Mayowa Adeduro, in an exclusive interview with our correspondent, pointed out that, within two years of inception of a life policy known as ‘waiting period’, a suicide is not covered, unless after two years.
“You are not covered within the first two years of a life policy, because you might have been contemplating suicide before you went to obtain the policy and, thereafter, commit suicide. By insurance law, you are not supposed to contemplate suicide. The first two years is called ‘waiting period’. After that, if you go and commit suicide, you are covered,” he added.
While advising those intending to commit suicide that there are insurance policies to cover whichever risks that might have depressed them into thinking that suicide would be the best solution, he pointed out that underwriters exist to insure risks.
“As an underwriter, that is the essence of our being in business, to ensure that people have an alternative way of addressing their health challenges and other risk elements of life. So, suicide is not a solution to problems. People must learn to attend to their challenges through purchase of insurance policies,” he pointed out.
Citing an example, he said his company’s Loss of Employment Insurance Scheme (LoEIS) has prevented about 200 people from committing suicide, as a result of sudden loss of their jobs, because they were assured that, in the next 24 months, after they suddenly lose their jobs, they could come get succour.
Earlier, the Lagos State police public relations officer (PPRO), SP Dolapo Badmus, said, though suicide was a criminal act, the police was, first and foremost, doing its bit by creating more awareness on the consequences of attempting suicide.
“Given the criminal nature of suicide, it is expected that those who attempt suicide be arrested and prosecuted, but, the best option would be creating awareness.
“We can prosecute anyone who attempts to kill himself or herself but that seems not to be the solution. The real solutions lie in finding out from such persons the reason for such an act and talk them out of it. We always advise victims’ families to monitor them closely, because those who commit suicide do so out of depression and frustration, ranging from marital, economic, loss of job and some other situations.”
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