Traders Shun Insurance Policy, say operators not sincere

LAGOS- Despite heavy losses incurred by traders in Lagos in some recent major market fire outbreaks, many of the traders are still reluctant to insure their products and businesses, investigations by the News Agency of Nigeria (NAN) has indicated.

Over five major markets in Lagos have experienced fire outbreaks in the last one month, resulting in losses worth billions of naira.

However, in separate interviews with NAN in Lagos, many of the traders said they would not insure their businesses because they believed that insurance companies were not sincere.

Mr. Lekan Oguntunde, the market leader of Oluwagbemi Market in Lagos Island, said most insurance companies delayed in paying compensation over property insured whenever tragedy occurred.

“The experience of few of our members that registered with them is unpleasant.   “ These insurance companies are diligent in collecting premiums but when it is time for compensation, they will start demanding for unnecessary things.

“One of our members was asked to bring receipts for goods bought many years before the fire outbreak that gutted his shop,” Oguntunde recalled. A victim of a recent fire outbreak at Ereko Market on Lagos Island, Mrs Remix Bakinson, said the confidence many Nigerians had in insurance companies, was gradually fading away.

Bakinson said she stopped insuring her business five years ago because she did not see the need for it.

“All that insurance people are concerned about is the collection of premiums, after that, nothing else.

“At least, they should be able to tell us what happens to the money if no losses are recorded after a period of time,” he said. She , however  said she regretted not insuring her business, adding that she lost goods worth billions of naira in the fire outbreak.

Mr Silva Okereke, the Leader of fabric sellers at the same market, said he distrusted insurance companies because of their high premiums, especially, for comprehensive insurance.

According to Okereke, the insurance companies demand up to N500,000 per annum on business valued at N5 million.  “This is just too high; some of us collected loans from the bank to float our businesses and we are still repaying with interest. “We pay almost five million naira per annum as rent on our shops; this is apart from other expenses.

“So, it will be good if insurance companies can bring down the premium they demand,” he said.