Home Business and Economy Insurance Companies under siege for Massive Claims as Hoodlums Destroy insured investments

Insurance Companies under siege for Massive Claims as Hoodlums Destroy insured investments

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This is one of those moments that the insurance industry across the world will never pray for. Lots of comments have been going round that with the current rampaige of hoodlums destrying properties worth trillions especially in Lagos and few other States, the insurance industry may be facing potential threats from the payment of claims.

The agitation by EndSARS protesters was hijacked by hoodlums who took advantage of the protest to unleash mayhem in several cities. for a state like Lagos, the development made the Governor, Babajide Sanwo-Olu to impose a 24-hour curfew on the state.
Few hours after the curfew was declared, soldiers were deployed to disperse the protesters at the Lekki toll gate, instead they went on a shooting spree which resulted to the death of about 50 protesters while several others were injured.

The action of the Security agencies infuriated the youths who went on the rampage and started destroying properties belonging to individuals and corporate Organizations.

As of the time of writing this report, properties destroyed run into trillions of Naira which inclde, uncountable police stations and vehicles, Television Continental, Federal Road Safety Corps, Vehicle Inspection Office, Lekki Toll Company, BRT Terminal in Oyinbo, Nigeria Port Authority building, Shoprite in Jakande Estate, the Oriental Hotel on Victoria Islan, family house of Lagos State Governor in Surulere, GT Bank in Lekki, lots of business premises, etc

As a matter of fact, the colossal loss of properties as a result of these protests may have opened an era for the settlements of claims by insurance companies.

Figures obtained from the National Insurance Commission showed that in 2019, the insurance industry, paid a total claim of N 330.36bn, showing a 31 percent growth in claims payment from total N252,19bn claims paid by operators in 2018. The 2018 figure also depicted 35 percent growth from a total of N186.44bn claims paid by the industry in 2017.

Economic experts said the mayhem caused by the protest may further increase the amount to be paid by insurance companies on claims settlement this 2020, insurance companies should begin to brace up for the huge claims that might follow when the situation is normalized.

be it as it may, an insurance expert said, it might be as we have stated here because most government agencies and even businesses take insurance cover for only arson which does not cover fire as a result of riots or public disturbances. saying that many of them don’t even take fire insurance. They will tell you government did not provide money. Don’t be surprised that BRT is not insured against fire or the NPA just as the Federal Secretariat in Abuja does not have any insurance cover.