Many people in the social circles or business world underestimate the power of insurance as aid to commerce and future security. Or perhaps they have had a bitter story told them by people how insurance policy has been corrupted by some quack insurance houses or brokers.
Notwithstanding, we need to understand that insurance as an aid to business is sine-qua-non to our assets and liabilities,even our lives ,if adequately handled.
A father who leaves a tangible legacy for his children –houses, cars, chain of businesses and what have you, can be assured of adequate care and protection , uninterrupted business life and sustainability, even after his demise; which may be otherwise if such a father ignorantly left his or her assets unprotected or indemnified while living.
For better understanding, insurance is a means of spreading the burden of losses over a large number of those who are likely to suffer losses, so that no particular individual’s losses are not made good.
In the world today, small and big, national and multinationals vote colossal amount of money in a variety of business-Building, machineries and plants are put up for the purpose of production.
There could be accidental outbreak of fire and floods(which is too rampant now in Nigeria) which can cause unexpected damage to properties and goods or even workers of the company. If the business is not indemnified against such losses, such business owners would naturally loathe to take business risks. This is where insurance company comes in-it reassures the business owner that accidental losses would be put back into its former financial position.
What Insurance Did For Arere Town
This is an illustration- In a small village of Arere, life often felt secure and peaceful . This sense of safety was largely thanks to the town’s widespread understanding and use of insurance policy.
One day , a devastating storm struck Arere, causing significant damage to homes and businesses. Thanks to their insurance policies; many residents received the necessary funds to repair their houses and restore their livelihoods quickly. Without insurance, these families would have struggled for years, potentially leaving the community scarred and devastated.
Insurance policy is not only for tangible things but also for intangible. Insurance plays a crucial role in healthcare. When Emma, a young mother, faced a sudden illness, her health insurance covered much of her treatment. Her recovery was swift , and could return to her family more than expected. This, not only saved her life, but also prevented her illness from becoming a financial burden on the community’s healthcare system.
Moreover, insurance encourages responsible behaviour. This leads us to Auto insurers. They encourage healthy use of motor vehicles and encourage the public to insure their vehicles in case of damage or loss. In Nigeria, motor vehicle insurance is compulsory.
Types of Motor Vehicle Insurance:
- Third Party Vehicle Insurance-This does not cover the damage suffered by the owner of the vehicle but only the damage done by the vehicle to the third party .
- Third Party, Fire and Theft-In addition to covering the damage done to the third party, or his property, it also provides for compensation for loss arising from fire or theft of the vehicle. This is cheaper than the comprehensive insurance policy.
- Comprehensive Insurance-This covers all the losses to the third party and also the owner of the vehicle but it is the most expensive of the three.
Other forms of insurance policy include: Fire Insurance , Burglary, theft and Robbery Insurance, Fidelity Insurance, Accident Insurance, Life Assurance, Goods or Cash In-Transit Insurance, Marine Insurance and many others.
Make a decision for the future, but be sure to patronise a registered insurance house and research your broker before filling the proposal form.