The average Nigerian see no expedient to be insured. If you are this Nigerian, this article is a must-read for you.

Insurance is a way of managing risks. When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee, known as the premium. Insurance companies invest the funds securely, so it can grow, and pay out when there’s a claim.

TYPES OF INSURANCE YOU NEED

You can insure almost anything under the sun, but certain things absolutely need to be properly insured. This typically includes your LIFE, your HEALTH, and your PROPERTY. It’s important to have HEALTH INSURANCE to cover medical costs for yourself and your family; LIFE INSURANCE, which can help provide your loved ones a measure of financial security when you pass away; PROPERTY INSURANCE to cover your home; to protect your vehicle and other properties that can be insured.

FUNDAMENTAL PRINCIPLES OF INSURANCE

Contract of insurance, however, is a special kind of contract, is governed by some additional specific principles. These principles are; Utmost good faith Insurable interest, Indemnity and subrogation.

  1. PRINCIPLE OF UTMOST GOOD FAITH (UBERRIMAE FIDEL): States that the insurer and the insured must disclose all material facts before the policy inception. In case of non-disclosure or misrepresentation of material facts, the policy can be considered null and void.
  2. INDEMNITY: A contractual agreement in which one party guarantees compensation for actual or potential losses or damages sustained by another party. These special insurance policies indemnify or reimburse professionals against claims made as they conduct their business.
  3. SUBROGATION: is a term describing a legal right held by most insurance carriers to legally pursue a third party that caused an insurance loss to the insured. This is done in order to recover the amount of the claim paid by the insurance carrier to the insured for the loss.

BENEFITS OF GETTING INSURED

  1. It protects your income from unexpected expenses.
  2. It protects the money you are saving for future plans.
  3. It gives your power to protect your family even when you are not around any more.
  4. It protects your emotional health by giving you peace of mind.
  5. It protects your future by increasing your potential to earn from investments.
  6. It reduces social burden. Insurance helps reduce the burden of uncompensated accident victims and the uncertainty of society.