1 month ago
15 ARTICLE AD
Stakeholders in the social and economic sectors have advocated for comprehensive enlightenment programmes to educate Nigerians on insurance to mitigate the impact of natural disasters.
They also called for a review of insurance policies to address religious and cultural perceptions hindering effective insurance coverage among Nigerians.
The stakeholders, including economists, scholars, and insurance managers, expressed these views in separate interviews with the News Agency of Nigeria in Bauchi, Dutse, and Gombe.
A Gombe-based economist, Dr Nigel Bachama, stated that Nigerians are wary of insurance due to a lack of awareness, poverty, and cumbersome insurance policies.
He noted that most people, including the elites, are not familiar with the benefits of insurance in addressing the social and economic impacts caused by floods, fire outbreaks, and natural disasters.
According to him, the level of awareness about insurance is low, and people are unable to insure their lives and property due to a poor understanding of the system.
Bachama highlighted the poor attitude of insurance companies and poverty as obstacles preventing effective insurance coverage in the country.
“You need to first create awareness of why we have insurance before people can subscribe to it.
“Those who have purchased insurance often have tales of how difficult it is to claim benefits in the event of a disaster.
“This is because insurance companies do not adhere to their policies or fulfil their obligations.
“For instance, if you insure your vehicle against accidents and have an accident, it can take months before they even assess the claim.
“This negligence on the part of insurance companies,” he said, adding that poverty makes insurance inaccessible to many.
The Chairman of the Nigeria Union of Journalists, Bauchi State Council, Malam Umar, also attributed low insurance coverage in the country to poor sensitisation efforts.
He explained that insurance policies have a direct impact on people’s lives, stressing the need for proactive measures to encourage participation.
“Poor sensitisation regarding insurance policies also affects compliance, particularly with the Health Insurance Scheme.
“We need success stories to help promote such policies,” he said.
Additionally, an Islamic cleric in Dutse, Jigawa, Auwal Funtua, mentioned that many Muslims are wary of insurance due to perceived controversies within Islamic jurisprudence.
He explained that while insurance is contentious among contemporary Islamic scholars, it could be deemed lawful when considered from the “Takaful” perspective.
Takaful, an Arabic word meaning “solidarity or mutual guarantee”, is a cooperative system of reimbursement or compensation in case of loss caused by disasters or accidents. It is an Islamic or Sharia-compliant alternative to conventional insurance.
Funtua described Takaful as a donation made by people against disaster or accidents and encouraged Muslims to seek more knowledge on disaster prevention and mitigation.
However, some residents of Dutse in Jigawa dismissed insurance as unlawful due to a perceived lack of probity and transparent management.
A resident, Mr Sulaiman Dahiru, argued that insurance is unpopular in the area because it is not consistent with Islamic law.
“This is why most people in the north do not insure their lives or property,” he said.
Dahiru stated that people should be educated on the merits and demerits of insurance so they can benefit during disasters and emergencies.
Similarly, Ahmad Muhammad attributed low insurance coverage to poor compensation of disaster victims by insurance companies.
He noted that people are often apprehensive about how to recover their money in the absence of a disaster or accident within the insurance term.
“This is due to a lack of proper awareness and transparency in the insurance system. It must be made clear for people to understand,” he said.
Another resident, Mrs Binta Garba, added that Nigerians have lost trust and confidence in insurance companies due to delays in compensating victims.
She called for the introduction of new insurance policies that align with Nigerians’ religious and cultural beliefs.
Supporting the call, Bachama emphasised the need for community sensitisation to improve Nigerians’ financial literacy and understanding of insurance policies.
While urging insurance companies to ensure faster processing of claims for disaster victims, Bachama encouraged Nigerians to embrace insurance to protect themselves against losses during disasters.
“Insurance provides coverage against life’s uncertainties and protects against losses. It is a good policy for all Nigerians, regardless of financial status.”
NAN
