“There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction.” J.F Kennedy. The words of former President of the United States of America J.F Kennedy resonate at a time like this in our existence as a nation.
The recent tragic event that happened in Lekki now known as the Lekki Massacre or Black Tuesday by many culminated in widespread violence by hoodlums who used the opportunity to loot and burn down properties across the country leaving numerous deaths in their trail.
The turn of events reminds us of the old saying – who knows whether the gods will add tomorrow to the present hour? Thus, uncertainty calls for preparation and putting in place palliatives to mitigate risks and cushion unwanted eventualities. Available reports revealed the desperation and extent hoodlums and miscreants could go to satisfy their anti-social taste for illegal invasion and theft. In some quarters, hoodlums carted away an Automated Teller Machine (ATM) while others butchered state of the art cars amongst other valuable properties. It is unimaginable! In Lagos and other states, the value of what was lost inclusive of BRT Buses, Nigerian Port Authorities Office, shops, banks and so on were estimated to be valued at about ₦1trn. The issue of insecurity is another major problem ravaging the very existence of Nigeria that calls for great attention by the government otherwise it might rob Nigeria of its very existence if the Government keeps paying lip service to it.
Having said that, after all the loss recorded as at the last count, what can be a semblance of solace to Nigerians today at this turbulent time is Insurance. Insurance is a financial tool that is convenient for individuals, groups and businesses to safeguard unpleasant outcomes as recorded recently in Nigeria. Some classes of cover worthy of note are Burglary and House Breaking, Fire and Special Perils, Business Continuity, Motor Insurance, All Risks, Money in Safe and in Transit, Group Life, etc. These contracts if well-defined bring succour to the insured in times like this.
There is no doubt the losses, damages occasioned by the rampage and, looting by the hoodlums are massive and heart breaking. Traditionally, insurance excludes losses caused by riot, strike and civil commotion. However, the policy could be extended to cover losses arising from these acts to relieve the insured; cost is usually minimal if there is a need for extra premium. Extension may also be granted on a long term business relationship basis.
The benefits of Insurance post-loss cannot be overemphasised. Businesses are therefore enjoined to always obtain valid and suitable covers at all times to protect their financial interest as well as sustainability of the business. Most businesses thrive on credit support. It is expected such credit lines and business are adequately insured with a competent and viable underwriter. Other than the financial compensation, the peace of mind and second level security enjoyed by the insured is unquantifiable.
On their part, insurers should increase the level of sensitisation and provide credible advice to the public. The merits and limitations of each insurance cover should be highlighted to guide expectations and further strengthen trust and reliability in the market. Insurance firms must brace up to the current realities as a shock absorber to the economy as well endear the public through prompt claims settlement. This will in no small measure help in redeeming the battered image of the risk underwriting industry.
It is indeed a trying time for our nation as we have lost loved ones, properties and businesses. Let us be aware that all human things hang on a slender thread, the strongest fall with a sudden crash.
