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Chuks Udo Okonta
As a journalist, many insurance policyholders assume I work in an insurance company and are quick to report underwriters that are defaulting in settlement of claims.
Having knowledge on signs exhibited by companies that don’t honour claims responsibilities is essential to avoid trusting your risks on another risk.
Below are warning signs to watch out for before buying a policy.
* Litigations
Before buying a policy do a background check on litigations against the company.
*Prolonged failure on dividend payment
Insurance companies with negative earnings are barred by the regulator to pay dividend to shareholders, therefore, a company that has continuously failed to pay dividend would definitely default in claims payment due to financial challenges.
* Regulatory fines
Companies with consistent regulatory fines due to infractions would never pay claims.
* Prolonged posting of losses (Negative profit before tax and profit after tax)
Companies with negative financial results would definitely find reasons not to dishonour claims.
* Cheap insurance policies
Companies selling policies below stipulated premium, have from the on set resolved not to settle claims arising from such transactions.
* Unethical practices
Companies that perpetuate unethical practices would definitely dishonour claims.
* Poor after sales service
Companies with poor after sales service would default in claims payment.
Such firms neglect after sales to avoid contact with policyholders.
* Poor technology deployment
Firms with poor technology solutions stay far away from policyholders and ensure they are frustrated while trying to access claims.
* Poor visibility
Companies that don’t advertise and remained obscure would never honour claims.
* Avoidance of Corporate Social responsibility
Companies that failed to engage in Corporate Social Responsibility (CSR) would failure to honour claims. This is because they are unmindful of clients and the society.
Before buying an insurance policy with your hard earned income, endeavour to run a background check on the insurer using the aforementioned signs amongst others.
Insurance remains one of the best tools to mitigate risks, but it is worthwhile when done with a reputable company.
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