November 28, 2022



Spurious claims on the rise as economic system bites – Insurers

Insurance coverage firms have stated among the individuals insured, hit by financial hardship, occasioned by rising inflation and falling incomes, are resorting to creating spurious claims.

The insurers stated they’ve seen in latest instances false claims from prospects eager to benefit from their loss scenario to higher their situation.

In response to the insurers, that is frequent in motor insurance coverage insurance policies the place on the slightest type of accident, prospects wish to benefit from it to repair and keep their autos, which they may not do earlier than the incident.

Nigeria’s inflation fee rose to 19.64 p.c in July, the best since September 2005, from 18.60 p.c in June, in line with the Nationwide Bureau of Statistics.

The Managing Director of Outdated Mutual Nigeria, Olalekan Oyinlade, who confirmed the rising incidents of fraudulent claims within the trade, stated ‘Sure, it’s true that some individuals are benefiting from their loss to make extra cash.

“There are accidents, however individuals are benefiting from it to take care of their automobiles, which they may not keep shortly.”

“An insured automobile was bashed from behind and the bumper broken; now, a brand new bumper has been purchased to interchange it, however the proprietor of the automobile is asking that the entire physique of the automobile be repainted. Meaning we’re going to pay a panel beater to work on the entire physique earlier than portray,” a junior insurer stated.

Managing Director of Lifeguard Microinsurance, Adeyinka Oyekunle, the most recent participant within the Nigerian microinsurance area, stated, “We fairly perceive the challenges coping with small revenue earners and the way usually they may ask for claims, however now we have professionals who take a look at these conditions critically and take immediate choices on claims.”

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