When tragedy strikes, insurance is supposed to offer relief, not additional pain, yet some Nigerian policyholders still struggle to receive timely payouts when they file claims. In this piece, OLUWAKEMI ABIMBOLA explains how to ensure your claims are paid faster, especially within the current regulatory space that seeks to rebuild trust in the insurance industry
“Find reasons to pay claims. We are prioritising claims settlement, and we have set up a department for that purpose. The attitude of the market to claims settlement must change. We must find a reason to pay all genuine claims to effectively restore public trust and confidence in the insuring public. Indeed, claims settlement is one of the key priorities of my administration,” said the Commissioner for Insurance of the National Insurance Commission, Olusegun Omosehin, in August 2024, setting the tone for the industry and its players about the new outlook in time.
Since then, the CFI has taken other opportunities to emphasise the need for insurance players to pay claims. The regulator even took it further by publishing consumer complaints of unpaid claims by insurance companies.
At the 18th meeting of the Insurers Committee held recently, the matter of claims payment was a key highlight on the agenda. At the end of the meeting, the Vice Chairman, Subcommittee on Communication and Stakeholder Engagement of the Committee, Moruf Apampa, noted that industry players are in step with the CFI.
He said, “What NAICOM is doing is the right step in the right direction. You should do whatever you need to do to ensure seamless payment of claims to genuine claimants. The key thing here is to find every reason to deny claims.”
Now that both the regulator and industry players have agreed to genuine claims payment, the focus should turn to the policyholders, who are often at the receiving end when claims are not paid or delayed.
The data from NAICOM indicated that aggrieved policyholders with 1,582 complaints were owed over N24.59bn and $22.56m. Life, group life, and motor insurance policyholders topped the list, with disputed claims worth about N22.65bn, the highest value being group life assurance.
Bose Abidemi is one of many still waiting for closure. She has been engaged in a five-year battle with an insurance company over a life assurance claim following the death of her uncle, who named her as a beneficiary. A widow caring for her late uncle’s children, Abidemi recalls the promise he made before his passing: that the policy would secure their future if he didn’t survive a lingering illness. But what should have been a straightforward process turned into an emotionally exhausting ordeal.
Every time I go to their office, it’s one excuse after another,” she said. “They make me relive the painful experience of my uncle’s death all over again. We haven’t received the money, and instead, they’re giving me and my cousins heartaches.”
A Lagos-based entrepreneur who had a comprehensive auto policy was denied compensation after his vehicle was severely damaged in a crash. The insurance firm rejected his claim because he didn’t use a partner repair centre, even though the location was far from the accident scene.
In both cases, the claims were genuine, yet unpaid, often due to technicalities or documentation issues.
These types of experiences reinforce a persistent public perception: that insurers deliberately frustrate policyholders or their beneficiaries until they abandon their claims. It’s a perception that has long harmed the industry’s credibility.
But how exactly do claims work, and what can policyholders do to protect themselves?
According to Coronation Life Assurance, an insurance claim is the formal request a policyholder or a beneficiary makes to their insurer for compensation according to their policy coverage. Claims are typically filed after an unfortunate incident, such as a car accident, fire outbreak, or theft, which was insured against, occurs and results in permanent disability or death of the policyholder. Also, claims are important because the policyholder or beneficiary filing can immensely influence how lucid or difficult the process is. For the compensation to be activated, a claim must be filed.
To ensure prompt payment of claims, the company has an advisory for beneficiaries.
Understand your policy: The number one thing that Coronation Life calls for is a clear understanding of the policies and their fine print, and this should be in place before the policyholder signs off on the contract.
“Policyholders must take time to understand their policy, the limits of its coverage, exemptions or conditions, and if there are any timelines for filing a claim. This applies to beneficiaries also. This provides clarity and enables the management of expectations. An in-depth understanding of a policy also makes it easier to make alternative preparations and decisions in unforeseen circumstances,” the company said in its advisory.
US legal firm, Gunn Law Group, made the same call saying, “By reviewing your policy early, you can identify any misrepresentations or gaps in your coverage and address them before an emergency arises. Being informed is your best defence against an insurance company that may try to deny or downplay the extent of your damages.
Knowledge is power in this instance. Before you sign on the dotted lines, ask as many questions as possible, and if there is a need for legal advice, please get some.”
Documentation: A major reason that claims are not paid is a lack of proper documentation. Whatever claims you are filing, you must be able to provide irrefutable pieces of evidence, and this can be achieved by obtaining documents such as medical reports, a death certificate, a valid identity card, and other documents that the insurer may require from the beneficiary.
These documents mean that your claims will be processed faster, leading to a quick and easy payout.
Sincerity: Trust is the backbone of the insurance business; once it is breached, then both parties are at liberty to go to extra lengths to determine the veracity of the claims made. Even after a claim has been filed, insurers may require additional information to move forward.
When contacted, the beneficiary needs to provide the needed information to aid the speedy payout. In the process, it is important to avoid embellishing or omitting facts about the claims. This raises suspicion, leading to a closer look and a delay in the payment, even if the claim is genuine.
With regulatory pressure mounting and the threat of licence withdrawal hanging over defaulters, Nigerian insurance companies now have stronger incentives to pay valid claims. But they can only do so when policyholders come prepared, with knowledge, transparency, and the right documentation.
