The insurance policy is a contract binding on the policyholder and the insurance company – which determines the extent to which the insurance company is liable to pay in the event of claims. It is crucial that the policy is made available to the policyholder for his/her understanding and safekeeping.
Here are a few ways for you to keep your policy intact:
- Keeping your policy in force – this requires the regular payment of insurance premiums to validate the insurance policy. It is important to note that the golden rule of insurance in Nigeria is “No premium, No cover” – and it applies to every policy issued by any insurance company.
- Updating of Records – Insurance policies align with the current information provided by the policyholder. Given this, it’s essential to provide accurate information to the insurer at the point of initiating plan. Also, notify the insurer of changes in the future – to avoid challenges during claim processing.
- Policy Renewal – The insurance policy runs for only for some time. Upon maturity of the policy, you can renew your policy to extend the life span of the policy. Please note that the new policy is dependent on the current conditions and not on the condition of the previous policy.
- Policy Validation – You must confirm the authenticity of your insurance policy to avoid scammers. In Nigeria, there are two main ways to verify your cover which are;
- Nigerian Inter-Bank Settlement System (NIBSS) shortcode – *565*11#
- The Nigerian Insurance Industry Database
In conclusion, keeping your policy intact makes you eligible for all the benefits in your plan. It also enables the smooth execution of claims settlement in the event of a loss or damage.