Insurance Industry Faces Massive Claims As Hoodlums Destroy Properties

The insurance industry may be facing potential threats from the payment of claims following the massive destruction of properties by protesters in Lagos State and other cities.

The agitation by EndSARS protesters was hijacked by hoodlums who took advantage of the protest to unleash mayhem on several cities.

Most affected is Lagos State where mayhem was unleashed on both the protesters and innocent people.

The development made the Governor, Babajide Sanwo-Olu to impose a 24 hour curfew on the state.

Few hours after the curfew was declared, soldiers were deployed to disperse the protesters at the Lekki toll gate. The development led to the reported death of seven of the protesters while several others were injured.

The action of the Security agencies infuriated the youths who went on rampage and started destroying properties belonging to individuals and corporate Organizations.

As of the time of writing this report, properties destroyed run into several billions of Naira.

Some of them are in the police stations on the mainland in Igando, Ikotun and Bariga which were razed by angry mobs in Alimosho Local Government.

Also, the office of Television Continental, Federal Road Safety Corps, Vehicle Inspection Office, Lekki Toll Company, BRT Terminal in Oyinbo, Nigeria Port Authority building, Shoprite in Jakande Estate were all burnt by protesters.

The Oriental Hotel on Victoria Island was also torched by the hoodlums while the family house of Lagos State Governor in Surulere, GT Bank in Lekki and several vehicles were also burnt.

According to experts, the collosal loss of properties as a result of these protests may have opened an era for the settlements of claims by insurance companies.

Figures obtained from the National Insurance Commission showed that in 2019, the insurance industry, paid a total claim of N 330.36bn, showing a 31 per cent growth in claims payment from a total N252,19bn claims paid by operators in 2018.

The 2018 figure also depicted 35 per cent growth from a total of N186.44bn claims paid by the industry in 2017.

Economic experts said the mayhem caused by the protest may further increase the amount to be paid by insurance companies on claims settlement.

They said that insurance companies should begin to brace up for the huge claims that might follow when the situation is normalised.

But the Acting Managing Director, Cosmic Insurance Brokers Ltd, Mr Jide Bello said the industry may not be facing massive claims as a result of the protests.

He said, “This may not be so. Most government agencies and even businesses take insurance cover for only arson. But arson does not cover fire as a result of riots or public disturbances.

“Many of them don’t even take fire insurance. They will tell you goverment did not provide money. I will not be surprised if BRT is not insured against fire or the NPA.

“Look, the Federal Secretariat in Abuja does not have any insurance cover. I know that for a fact. So, at the end of the day, the industry may not be facing any major problem.”

On how the riots could affect the insurance industry, he expressed doubts if many of the houses razed had insurance cover.

He added, “It is only in Lagos that much damage has been recorded. But don’t be surprised that many of the houses razed are not insured.”