Insurance education key to robust disaster mgt – Stakeholders
CHIGOZIE AMADI
Stakeholders in the social and economic sectors have advocated comprehensive enlightenment programmes to educate Nigerians on the insurance to mitigate impact of natural disasters.
They also called for the review of insurance policy to address religious and cultural perceptions militating against effective insurance coverage among Nigerians.
The stakeholders including economics, scholars and insurance managers, stated this in seperate interviews with the News Agency of Nigeria (NAN) in Bauchi, Dutse and Gombe.
Dr Nigel Bachama, a Gombe-based economist, said that Nigerians are wary of insurance due to lack of awareness, poverty and cumbersome insurance policies.
He said that most people including the elites were not conversant with benefits of the insurance in addressing social and economic impacts ocassioned by flood, fire outbreaks and natural disasters.
According to him, the level of awareness on insurance is low, adding that people could not insure their lives and properties due to poor understanding of the system.
Bachama listed poor attitude of insurance companies and poverty as some of the obstacle militating against effective insurance coverage in the country.
“You need to first create awareness in that regard and why we have insurance before people can subscribe to it.
“Those who have purchased insurance have tales to tell on how difficult it is to get your benefits should there be a disaster.
“This is because the insurance companies do not adhere to their policies and what they are supposed to do.
“For instance, if you insure your vehicle against accident and you have accident, it will take months before they will look at it.
“This is negligence on the part of the insurance companies,” he said, adding that poverty was making insurance inaccessible to many people.
Malam Umar Said, Chairman, Nigeria Union of Journalists (NUJ), Bauchi State Council, also discribed poor sensitisation as largely responsible for the low insurance coverage in the country.
He said that insurance policies had direct impact on lives of the people, and stressed the need for proactive measures to mobilise participation.
“Poor sensitasation on insurance policies also affects compliance, especially Health Insurance Scheme (NHIS).
“We need testimonies to win over such policies,” he said.
Also, an Islamic cleric in Dutse, Jigawa, Auwal Funtua, said that Muslim faithful are wary of insurance due to perceived controversy in Islamic jurisprudence.
He said that although insurance is controversial among contemporary jurists, but it could be lawful when viewed from the “Takaful” perspectives.
Takaful is an Arabic word meaning, “solidarity or mutual guarantee”.
It is a cooperative system of reimbursement or repayment in case of loss caused by disasters or accident, organised as an Islamic or sharia-compliant alternative to conventional insurance.
Funtua described Takaful as a donation made by people against disaster or accident, and enjoined Muslims to seek more knowledge on disaster prevention and mitigation.
However, some residents of Dutse in Jigawa, dismissed insurance as unlawful due to lack of probity and transparent management.
Mr Sulaiman Dahiru, a resident, argued that insurance is unpopular in the area as it’s not consistent with the Islamic law.
“This is why most people in the north do not insure their lives and properties,” he said.
Dahiru said that people should be educated on the merit and demerit of insurance, to enable them to benefit during disasters and emergencies.
Similarly, Ahmad Muhammad, attributed the low insurance coverage to poor compensation of disaster victims by the insurance companies.
He said that people were apprehensive about how to recover their monies in the absence of disaster or accident within the insurance tenure.
“This is evident due to lack of proper awareness and transparency in the insurance system, it must be made clear for people to understand,” he said.
Another residents, Mrs Binta Garba, added that Nigerians lost trust and confidence in the insurance companies because of the payment of compensation to the victims.
She also called for the introduction of new insurance policies to suit Nigerians according to their religion and culture.
To buttress the call, Bachama stressed the need for community sensitisation to enlighten Nigerians on financial literacy and insurance policies in the country.
While urging insurance companies to ensure speedy processes of accessing benefits by the victims, Bachama advised Nigerians to embrace insurance, to protect themselves against losses during disasters.
“Insurance provides cover against life uncertainties and protects you against losses, so it is a good policy for all Nigerians no matter your financial status’’
