On Thursday 28 of June, tragedy struck along the Lagos-Ibadan expressway.
A tanker loaded with fuel exploded while in motion. The resulting inferno incinerated no fewer than 50 vehicles. The incident also claimed 12 lives, according to data made available by state authorities in Lagos.
If this were to happen in more developed climes, insurance companies would have been the ones counting their losses.
But since that incident, not many of those affected have walked to their insurance firms to make their claims.
This goes to show how low, insurance penetration is in Africa’s largest economy.
For some unknown reasons, insurance is still perceived as a financial instrument used only by the elite to protect themselves against unforeseen circumstances.
But it is indeed available to everyone.
Whatever the income brackets you belong, there is something for you. And it is worth mentioning that insurance is used to make the most of any possible terrible situation, including loss of lives.
Also Read: 7 Things To Note About Prophet Who Foresaw Otedola Bridge Accident
A Marketing Executive at AIICO Insurance, Nnamdi Ezeani told Bounce News in an interview that the over 50 cars destroyed on Otedola Bridge could have easily been replaced to the owners if they had comprehensive covers.
According to him, the two insurance products that would have been invaluable to the victims of Otedola bridge accident are Life and Auto insurance.
“The Auto insurance would have seen to the replacement of those cars burnt beyond recognition in the incident if the owners were among the lucky ones that escaped alive.
“The life insurance cover on the other hand would have ensured that their loved ones which they have left behind, have something to fall back on,” said Mr. Ezeani.
How To Get Auto Insurance Policy
Explaining further on how to get auto insurance, Ezeani explained that to insure cars, there are two insurance options.
“First, is the third-party insurance, which has limited liability and is compulsory.
“Second is the optional comprehensive cover which allows for total liability. In this instance, if the car were to be stolen, (snatched by armed robbers for instance), involved in an accident or total damage like it happened at Otedola bridge incident, the insurance company just replaces the car for the policy holder. AIICO paid out a total of 23 billion naira in such claims in 2017 alone,” he said.
Surprisingly, to get comprehensive insurance cover for your vehicle is simple, as Mr. Ezeani explained.
“For the comprehensive insurance, the policy holder is expected to provide certain information relating to his car and pay a premium. The information required include: The valuation of the car, which will be ratified by AIICO, the model, the year, the type of car,” he said.
5 Comprehensive Auto Insurance Quick Facts:
Comprehensive auto insurance is valid for one year.
The premium is usually up to 5% of the ratified value of the car.
You can get 4% but the maximum you always get to pay is 5%.
Whatever the percentage, after one year from when the policy goes live, it expires, and you will have to renew it.
If the policy holder fails to renew it, then the car is stripped of its cover.
What Does Comprehensive Auto Insurance Cover?
“The comprehensive auto insurance covers everything, from theft to accident. Usually the major things when you talk about auto insurance is theft, or accident or total damage like what happened at Otedola bridge,” said Ezeani.
According to him, “in such a scenario, what AIICO will do, when a claim is submitted by a policy holder, is to simply replace the car.
“This means, if your car that had comprehensive insurance cover is a 2005 Honda Accord for instance, AIICO will have to replace your car with a 2005 Honda Accord. It is that simple.
“That is why at the time of policy initiation, the policy holder has to provide all the information about the car, which is subject to ratification.”
And as for life insurance, there are two packages offered by AIICO that would have benefitted the victims of the Otedola bridge accident.
The first one is the Single Premium Level Term Insurance offered by AIICO. This life cover provides a one-off annual payment option for a life cover of up to 25 years.
It also has a minimum sum assured of 500,000 Naira.
This means that from the time that the policy goes into effect and the next 25 years, if anything happens to the policy holder, AIICO will pay the sum assured to your beneficiaries whom you have left behind.
We shall go into more details about AIICO’s life packages in the next series on insurance.
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