Insurance companies to be stronger than banks because of the nature of their business.
In a country where things work the way it suppose be. You eventually ensure everything you have from life, school, building, children, funeral, wedding and so on. Insurance is different from Phone warranty.
But in Nigeria as a case study many are not aware on how insurance companies operate and many insurance companies have closed or folded.
If you know how much it takes to insure a car of $100k then you will but cheaper car.
Types of insurance
1. Public Liability Insurance. This type of insurance If you injure someone or damage their property through negligence, we are legally obliged to pay compensation. The event that defend all about the injury or property damage from a third-party.
2. Business Interruption: This type of insurance in case of cost of work or low gross revenue arising as a result your business interruption. This may be caused by damage under building or other things.
3. Employee Liability Insurance: This type shield employee in case he sustains injury in a working place. Once he pay his premium in event of any mishap he will be well compensated. Remember that Premium is the amount agreed between the insurer and insurance company.
How to Pay Nigeria Car Insurance
4. Office Content Insurance. This type of insurance covers the breakdown of office equipment cost by building or machine or electrical failure. Sometimes your office equipment to may breakdown due to mechanical or electrical fault. This can cause severe damage to the office computers machines and so on. If the company has insured the equipment the insurance company can pay compensation or foot the bill of replacement
5. Legal Expenses Insurance: This type of insurance cover the legal costs you incur owning to charge against you. The prosecution may be individual or organization. most often this type of insurance is applied when you work in big company or the nature of your work. Insurance company can pay you compensation and make settlement depending on your insurance plane.
6. Life Insurance. This type of insurance covers your life expenses. In some cases Your-next-of-keen is always a beneficiary to the premium you paid. Many people are scared of this type of insurance policy but remember death inevitable. The premium you pay to insurance company as life insurance in this case is just like will. This is because it can be inherited.
7. Health Insurance: This is type where you pay premium against future illness. In less developing countries the worst killer is complicated sickness. You see a person with high fever buying medicine for headache because he can't afford the other. In USA you have heard about Obama's Care which is almost abandoned by new government. Nobody is praying for illness but being prepared before it strike you or your family member is a nice decision. In case of the event the insurance company will cover your medical bills, pay your compensation if disability.
8. Car Insurance: Why do we ensure our cars?. A car applies on the road almost everyday the probability of accident, theft or breakdown is very high. So if insure your car, the insurance company will take care if unexpected happens. No matter how much you insured your Car in case of accident or mishap there must be investigation. Remember terms and conditions apply for any car insurance type. Premium for car depends mainly on the car price and road worthiness.