Insurance is meant to provide a safety net during life’s most difficult moments. Yet, for many Nigerians, filing a claim only brings more frustration. Delays and denials have become a familiar experience for policyholders seeking compensation.
In August 2024, Olusegun Omosehin, the Commissioner for Insurance at the National Insurance Commission (NAICOM), addressed the issue head-on. “Find reasons to pay claims,” he urged insurers. “We are prioritising claims settlement and have established a department dedicated to this. The market’s approach to claim payments must shift. We must honour all genuine claims to restore public trust and confidence. Claim settlement is a cornerstone of my administration.”
Since then, the Commissioner has continued to drive this message home. NAICOM has even gone as far as publishing unresolved consumer complaints to hold insurance firms accountable.
At a recent meeting of the Insurers Committee, the issue remained central. Moruf Apampa, Vice Chairman of the Committee’s Subcommittee on Communication and Stakeholder Engagement, reinforced this shift, saying, “NAICOM is taking the right steps. Companies must do everything possible to ensure seamless payments to genuine claimants. The goal is to find every reason to approve, not deny, legitimate claims.”
With regulators and industry leaders seemingly aligned on the need to pay valid claims, attention now turns to policyholders—those who suffer most when claims are delayed or denied.
According to NAICOM, over 1,582 unresolved complaints amount to unpaid claims worth more than ₦24.59 billion and $22.56 million. Life, group life, and motor insurance policies dominate these disputes, with group life assurance leading the pack at ₦22.65 billion in unpaid claims.
Take the case of Bose Abidemi. She has been locked in a five-year dispute with an insurance company over a life assurance claim following her uncle’s death. Named as a beneficiary, Abidemi, now a widow caring for his children, has been repeatedly stonewalled.
“Every time I visit their office, it’s another excuse,” she said. “They’re making me relive my uncle’s death over and over again. We still haven’t received the money, and it’s only causing more pain.”
Another case involves a Lagos-based entrepreneur who was denied compensation after a major car crash. Despite holding a comprehensive auto policy, his claim was rejected because repairs were not done at the insurer’s partner facility—which was miles away from the crash site.
In both instances, the claims were legitimate. Yet technicalities and documentation issues became convenient barriers to payout. These stories feed into a widespread public perception: insurers intentionally frustrate claimants until they give up. It’s a perception that has long damaged the industry’s credibility.
How Claims Work and How Policyholders Can Protect Themselves
Coronation Life Assurance defines an insurance claim as a formal request for compensation under a policy after a covered event—such as an accident, theft, or death—has occurred. The clarity and completeness of the claim filed can significantly affect how quickly it’s processed.
To help ensure smooth payouts, the company offers practical advice:
1. Know Your Policy Inside-Out
Coronation Life urges policyholders and beneficiaries to fully understand their insurance contracts before signing. This includes knowing the scope of coverage, exclusions, and timelines for filing a claim.
“Understanding your policy enables you to manage expectations and prepare for contingencies,” the company advises. “It makes decision-making easier during emergencies.”
Gunn Law Group, a U.S.-based legal firm, echoes this sentiment: “Review your policy early. This helps you spot any gaps or misrepresentations and address them before trouble arises. Ask questions and seek legal advice if necessary.”
2. Keep Thorough Documentation
One of the leading causes of unpaid claims is poor documentation. Submitting all required evidence—such as medical reports, death certificates, valid ID cards, and any additional documents requested by the insurer—is crucial.
Well-organized and complete documents can greatly speed up the claims process.
3. Be Transparent and Truthful
Trust is essential in insurance. When filing a claim, it’s vital to present the facts accurately. Any attempt to exaggerate or conceal information raises red flags and often results in delays, even for valid claims.
Insurers may follow up with requests for additional details—responding promptly and honestly can make all the difference.
A Changing Landscape
With stricter regulatory oversight and the risk of licence revocation looming, Nigerian insurers are under growing pressure to honour genuine claims. But for that system to work efficiently, policyholders also need to be proactive—armed with knowledge, complete documentation, and a clear understanding of the process.
Insurance is meant to be a promise—a lifeline in hard times. It’s time both insurers and policyholders did their part to make sure that promise holds true.
