Ahead of February 16th general elections in Nigeria, experts have called for caution and increased vigilance to avoid risks exposures that could affect life and properties.
The experts noted that in transition to democracy there is usually election related violence, sometimes affecting those that are not targeted.
So, understanding the potential for violence and adjusting plans, procedures and resources during an election period will help mitigate risks and lay the groundwork for responding to emergencies if they arise
Insurance experts note that life and property insurance ordinarily does not cover riot or violence, stating that this accounts for why many are not able to make claims when properties are destroyed as result of riot.
Kola Ahmed, an insurance broker and former director general of the Chartered Insurance Institute of Nigeria(CIIN) said what brokers who manage clients have done over time is to request for an extension of the property and fire policy to include cover for riot and violence.
“And what this means is that the insured would have to pay extra premium to get cover extension”.
Ahmed noted that in advanced economies like the UK, it is usually the responsibility of government to pay compensation for damage as result of riot.
“In the UK, we have what is called Riot Damage (Compensation) Act, which makes provision for insurers to recover their loss if they pay claims to insured on damages due to riot.”
According to Ahmed, such policy is not here in Nigeria and that is why insurance companies are reluctant to give cover for riot.
Chika Onwunali, managing consultant, Premium Debate said loss from riot could be huge and capable of wiping out a whole insurance company.
“It is the responsibility of government to pay for premium on riot and political violence and it is taken as subsidy to insurance. Unfortunately it is not available in Nigeria, that is why most violence is not insured.”
Meanwhile, the Association of Registered Insurance Agents of Nigeria (ARIAN) had stated that, as the nation embarks on the most important election in her history over the next few weeks, it urge all stakeholders to ensure that election is free, fair and credible. “We must ensure it is violence / war free”.
The group said this is because, as an insurance expert, the cover for war risks are always excluded from our policies meaning that if there is war , your car, house, properties even life if destroyed, insurance companies will not be available to pay claim, except in case of extension.
“For this reason, we in the insurance industry plead with every Nigerian to do everything within their powers to see that this election is free, fair and credible. Also War will definitely introduce new hazards which cannot be accurately calculated for.
