Genuine claims from consumers will curb rate cutting — Operators – Vanguard News

By Rosemary Onuoha

Insurance operators have called on consumers to always file genuine claims to their insurers to curb the menace of rate cutting and inappropriate premium in the sector.

According to the operators, some insurance companies have formed the habit of charging inappropriate premium rates over the years because a huge percentage of consumers don’t demand for claims when their insured losses crystallise.

Vanguard investigations reveal that while most insured are ignorant about how to go about filing a claim, a greater number just decide to bear the cost of replenishing the loss, especially in motor accidents.

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Speaking to Vanguard on the development, Executive Director, General Business, Leadway Assurance Company Limited, Adetola Adegbayi said that consumers should always demand for their claims whenever they suffer an insured loss because when the insurance companies settle genuine claims overtime, they will be compelled to charge appropriate premium rates.

Adegbayi said, “Insurance consumers with genuine claims must always go to their insurers and collect their claims because the more claims the insurer gets, the more the insurer will get his acts right. The public should demand value from insurers.

According to Adegbayi, some insurers assume that people will not make claims hence they undermine the value of insurance by charging inappropriate rates.

She said, “Insurers have no right to breach public trust by taking money from people and disappoint them. The lower you drop your price, the riskier your business becomes. In essence, we are hurting ourselves when we cut rate and also hurting the public.”

Also speaking on the issue, President of the Nigerian Council of Registered Insurance Brokers, NCRIB, Mr. Shola Tinubu said that insurers should start charging the right rates because only a seller will price his goods right and by charging right, they can settle claims promptly.”

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Tinubu said, “Insurers have continued to charge inappropriate rates despite the devaluation in the naira some years ago. As such, they have continued to sell at old price and some of them have not been able to meet up with claim settlements.

“When you have devaluation in your currency and you still charge old rates, it affects claims; meanwhile, premium is the same. Sadly, the industry did not do price adjustment when we needed to.

“However, insurers should be held accountable for their pricing and they should be able to price their products adequately. Until the seller gets up and do the needful, he will continue to be affected negatively.”