I read an interesting article on page 35, businessday of 2/11/11 on why it is important to read the fine prints on your policy document. A lot of us do not, including myself. Now imagine, you suddenly need your brother to come and pick you up at the airport with your car on a Sunday evening. On his way to the airport he unfortunately has an accident which damages your car. You feel sad, but consoled by the fact that your vehicle was fully insured. On getting to the Insurance officer he to your bewilderment tells you that you cannot be paid claims. Is this possible in Nigeria, you may ask? Oh well, in a way it is. Its all in the fine prints.
According to the article, if a clause in your Insurance policy says that your policy does not cover a third party driver then you are not qualified for payments. Usually policies like these will ask you to name someone other than yourself, who is eligible to drive your car. If you are married and your wife can drive, its is likely that you will name your driver. In most cases, these policies also come with cheaper premiums and trusting some of us, we will just go for it. In fact, if you have an accident with your car without having a valid driving licence as at the time you had the accident, you may not be able to get your claims.That is why it is important to read the fine prints in your insurance policy.
Insurance is Nigeria is catching up fast growing by 47% in Nigeria. In fact the net premium for 2007 was a whopping N24.8b. It is expected to grow further and with growth comes competition and more streamlines products. Insurance companies will offer various kinds of policies that can appeal to several risk appetites. So, next time you get your Insurance Policy, I will advice you read it.