NIA Chairman, Eddie Efekoha
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Chuks Udo Okonta
Life insurance operators have continued to pay more claims due to high death rate of people with life policy, investigations have revealed.
It was also gathered that demands for life policies have risen in recent times, as people sought for cover to protect their lives.
According to data obtained from the Nigerian Insurers Association (NIA), life insurers, with a period of five years – 2010 to 2014 paid over N127.29 billion claims. The breakdown showed that N12.11 billion was paid in 2010; N17.92 billion in 2011; N27.03 billion in 2012; N34.31 billion in 2013 and N35.95 billion in 2014.
Within the same period the premium written also continued to rise as more people embraced life insurance. In 2010, N39.77 billion was grossed; N54.55 in 2011; 69.97 in 2012; N80.42 billion in 2013 and N108.58 billion in 2014.
An Academic Don, Ogungbayibi Adedayo, School Officer Lagos State Polytechnic (LASPOTECH) at an event in Lagos, said life insurance remains one of the best ways to keep ones family financially stable when death occurs. He urged the public especially public service workers whose organisation’s did not provide group life to buy life policies to enable them bequeath financial fortunes to their loved ones when they passed on.
He noted that with the present economic situation, group life policies had helped many associations to catered for families of deceased colleagues, adding that insurance reduces financial burdens such as contributions and donations which ought to be made for deceased colleagues.
He noted that his association has been able to secure N1 million each for families of colleagues who passed way recently, adding that the claims brought relief to the families who needed money to sort out issues.
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