INSURANCE 101

Championing insurance in Africa. 

Life and ownership of property involve risks. This may be risk of loss by theft, flood, fire, damage, debilitating illness or death. In the event of any of these, the burden of repair, replacement, burial or containment may be overwhelming to those involved or affected.  This risk or burden can be shared, reduced or transfered.

Insurance is a transfer of risk. An individual or company can transfer the risk or burden of the occurrence of an unforeseen event to an insurance company by the payment of an agreed sum or premium, so that for the agreed period of time, if there is an unfortunate event like the theft or damage of an insured car or fire in a business premises ,death etc, the insurance company comes in to bear the financial burden that will immediately arise. This is the beauty of insurance. 

With good insurance cover, you have a lot less to worry about when it comes to unforseen circumstances.

In Nigeria as in other countries, car insurance is compulsory and every reasonable person insures his car. This is commendable and prudent. However, your other valuables can be insured too; your equipments, houses, goods in transit, your education and even your life.

In the coming weeks, will be looking at the different types of insurance.