• Compare Quotations. Before you commit yourself to an insurance policy, obtain several quotations from different insurance companies for comparison then choose the policy that suits you the best.

When selecting an insurance company, you should look for one that provides good security, reputation for claims service, reasonable prices and prompt documentation. You may seek advice from INSCAN.


• Insurance Agents. You can also obtain the assistance of insurance agents. When selecting an agent, you should look for one that provides prompt, efficient and helpful service. However, to ensure that you are protected from unscrupulous agents, make sure that you deal only with NAICOM registered agents and ARIAN member.


• Insurance Broker. You can also obtain advice on insurance cover through an insurance broker. Insurance Brokers are full time professionals who advise their clients on the most appropriate scope of insurance covers, the insurance companies that offer the most advantageous insurance protection and at the price that suits their individual client's needs. To ensure that you are protected from unscrupulous brokers, make sure that you deal only with NAICOM licenced and NCRIB registered brokers.


• Read the Fine Print. After making a decision to purchase a particular policy, read the policy when you receive it. If any item in the document is not in order, you are advised to query this and request that the necessary amendments be made. The policy that is purchased is the evidence of the contract and would be required in the event of a claim or litigation. Hence, it is preferable to keep this document which is the evidence of the insurance contract in a secure place. As a policyholder, you should always ensure that the policy coverage period is monitored as the insurance companies usually insert the condition that they are not obliged to send reminders of expiry or renewal dates of Insurance contracts. However, most agents, brokers and underwriters have put in place a system of sending our reminders on policy renewals.


• Pay Premium on Time. Nigerian Insurance companies have a No Premium No Cover Condition which means that if you have not paid your premium, your insurance cover is invalid. To avoid lapsing or non-renewal of an insurance policy, insurance premiums should be paid on time. It is advisable to make payment via crossed cheque with an endorsement stating the purpose of the payment and, if possible, the policy number. Most life policies provide 30 days of grace while Insurance brokers have 30 days credit facility. Insurance Agents do not enjoy any form of credit facility.


• Keep All Documentation in a Safe Place. It is advisable to ask for a receipt stating the amount and purpose of the payment whenever a payment is made. Keep all receipts, policy documents and other documents received from the Insurance Company in a safe, waterproof/fireproof location. Also keep records of all forms filled and all correspondence with the Insurance Company/Broker/Agent.