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Chuks Udo Okonta
Payment of claims promptly is a major obligation insurance companies own their policyholders having collected premium from them.
In insurance contract, the insurer and insured both have obligations that must be followed statutorily. Therefore, each of them is expected to have an understanding of the position of other party.
While the insurer conducts Know-Your-Customer (KYC) analysis, the insured also should carry out Know-Your-Insurer (KYI) before sealing the insurance contract.
Conducting the KYI, would help reveal why an insurance firm won’t be able to pay claims.
Symptoms of non claims payment insurance firm
*Premium rate-cutting
Any insurer that sells its products far below the approved rate can’t honour nor pay any claims.
*Delay/default in salary payment.
An insurance company that is unable to pay its workers can never pay claims.
*Regular regulatory sanctions
An insurance company that is regularly fined by its regulators, can never pay claims.
*Penny stock
Any insurance company that its stock price remains stagnant from year-to-year can never pay claims. This is because stock prices are often impacted by a company’s performance.
*High labour turnover
An insurance company with high rate of labour turnover can never pay claims, as there is deep rooted problem that makes workers leave the company.
*Poor publicity
Insurance companies with something to hind don’t engage in publicity for it will reveal their bad side.
*No partnership
Insurance firms that operate solo without partnership should be feared, for the solo attitude may be as a result of failure of other firms to relate with them owing to past bad experiences.
*Poor customer service
An insurance firm that wouldn’t pay claims can never put in place good customer service.
They will never have after sales service as their business with the insured ends at the point of premium payment.
To avoid joining the league of defrauded policyholders, ensure you test any insurance company wooing you for business with the aforementioned and others before paying your premium.
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