Ask the average Nigerian how s/he is prepared in case of a disaster that could result in loss of property, fortune or injury to self or loved one(s), and you are likely to get “God forbid!” as a reply.
The same Nigerian, however, can, in the same breath, admit to life’s uncertainties and give instances of tragedies that have befallen themselves or others, like the sad news of a fire outbreak in a busy Onitsha market last week which resulted in the loss of lives and properties.
#Onitsha fire and #Prayforonitsha trended last week on social-sharing platform, Twitter, as discussions formed around the failure of firefighters to respond to the tanker – fire, and minimize the loss which should run into millions of naira in terms of properties lost.
While some Nigerians blamed the state government and others prayed that God averts any more tragedies, there can be no denying that uncertainties are a part our daily lives and it has intensified for many of the fire victims who have no insurance and would have to start over from the remnant of the fire.
These insurance policies could have made a difference
In the case of the Onitsha fire, insurance could not have prevented the fire but policies like fire (and special peril) insurance, life insurance, home insurance, burglary and theft insurance, and consequential loss of business interruption insurance, can make the discomfort in the aftermath of such event more bearable.
In case you are wondering what insurance is, think of it generally as a contract between you and an insurance company that guarantees a restoration to your previous state if any bad thing happens to whatever you insured.
While you must pay a certain fee called premium to be able to access the insurance product, the events insured against must not be self – inflicted.
One need not get all the policies as some of the above-stated insurance policies already imply the others.
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Fire and Special Peril
This refers to insurance policies that compensate a policyholder for loss incurred in a fire accident including those caused by an explosion, lightning, and chemicals.
The policy also covers damage from natural events like flood, earthquake, landslide etc., while compensation for loss from social events like a riot, strike, malicious damage as well as liability from the bursting of pipes, water tanks, and impact by animal, vehicles and aircraft are guaranteed.
It should be noted that the premium to be paid would depend on your probability of being a victim of the events insured against. For instance, if you work with very combustible items then you would be required to pay a premium much higher than someone else with less risk.
As mentioned before, to enjoy the benefit of fire insurance, the accident must not be deliberate.
The insurance policy guarantees a return if the fire grows beyond the normal limit to damage items which should not be on fire, damages caused by firefighters in the course of putting out the fire and damages to the structure caused by the accident.
Life Insurance
Life insurance is an agreement between a policyholder (perhaps, you) and an insurance company for a named beneficiary to receive payment of a death benefit upon the death of the insured.
There was the silent “God forbid” right? Nobody hopes to die, but God would love one to make sure his or her family does not suffer when s/he is no longer alive.
Life insurance is so powerful in that in instances of a conflict between will and a life insurance policy in terms of the beneficiary, the former takes precedence.
Referring to the Onitsha tragedy (only to draw lessons), breadwinners of families were among the deceased and the implication could be that their loved ones would have to start fending for themselves. If the family left behind are majorly dependents, the accident would throw them into economic despondency.
Home Insurance
In the accident last week homes were also affected by the inferno, resulting in loss of property.
People can go from landlord to becoming tenants if their residential properties are affected by devastating accidents. With the net worth of a good number of people in real estate (especially in buildings), life investments can go down the drain in a few hours.
Corporates and individuals (whether landlord or tenants) can leverage this policy to get compensation when events like fire, theft and burglary and environmental damage occur concerning the insured building.
The policy can also guarantee rebuilding cost, replacement of damaged property and personal accidents.
