A member of our community asked:
“I have been seeing a lot of people saying insurance companies in Nigeria are scams and that they don’t pay claims when something happens.
Some people even said it is better to just save your money or invest it instead of paying insurance premiums.
But at the same time, I have also heard others say insurance actually works if you understand how it operates.
So I’m confused…
Does insurance really work in Nigeria or is it a scam?
Why do some people get paid while others don’t?
What are the things someone should know before choosing an insurance company or policy in Nigeria?
And if an insurance company refuses to pay your claim, what can you actually do about it?
I just want a clear explanation in simple terms so I don’t make mistakes”
Insurance is not a scam in Nigeria, people dont believe in it because they lack adequate knowledge about how it works. Insurance helps to provide protection against any form of loss be it financial or otherwiseand it involves an individual paying a particular amout to a liscensed body in exchange foRead more
Insurance is not a scam in Nigeria, people dont believe in it because they lack adequate knowledge about how it works.
Insurance helps to provide protection against any form of loss be it financial or otherwiseand it involves an individual paying a particular amout to a liscensed body in exchange for conoensation when eventualities occur. It helps you to transfer the unpredictable in order to secure the inevitable.
We have different insurance companies in njgeria and there are regulated by a body known as NAICOM (National insurance commission), who makes sure that when eventualities occur, the insurance company pays claims to the individual as agreed upon at the start of the policy
There are different policies that cover different individuals and are designed to meet specific needs of people.
1. Children’s education trustfund:
Tbis policy helps a parent to set up an educational trustfund for their children so that in the event that the parent is no more, the children cant be school dropouts or be at the mercy of anyone. The insurance company makes sure that the children’s education is secure by continuing the sponsorship of those children until graduation and also placing them on a yearly welfare package then all benefits will still be paid at the end of the duration.
2. Personal project/retirement plan:
This plan covers a specific need where one accumulates funds to either start up a business, embark on a project or basically a worker savings towards retirement. The essence of this plan is to accumulate funds which will be channelled into a business or project and incase of any eventualities, claims are paid to the chosen beneficiary
3. Life protection cover:
This plan covers life of family members or loved ones whereby incase theres an eventuality like death, the insurance company pays the chosen beneficiary some amount of money to offset any financial difficulties he or she may have experienced.
All the insurance policies have a tenure for maturity after which your claims can be paid but the reason why most people dont get their claims paid is because tbey defaulted either by making claims before maturity or default in payment of their premiums. However, where none of these happens, payment of claims is made without any much ado.
Also in choosing an insurace policy, one must also look out for a reputable insurance companyso as to avoid disappointments when it is time to pay their claims
I am an insurance agent working with zenith insurance, we are trusted and reliable. You can google us at http://www.prudentialzenith.com
I could guide you choose a plan that suits your specific need. Feel free to contact me for further clarification.
See lessIf you still believe insurance does not work in Nigeria… then you are not broke, you are just uninformed. Let me explain: After I shared my last post, I saw many comments saying “Insurance companies in Nigeria are scammers” “It doesn’t work here like abroad” And I just smiled… Because most people doRead more
If you still believe insurance does not work in Nigeria… then you are not broke, you are just uninformed.
Let me explain:
After I shared my last post, I saw many comments saying
And I just smiled…
Because most people don’t have an insurance problem…
They have a knowledge problem.
Let me tell you something that might shock you…
Insurance works in Nigeria.
Not 50%… not 70%… 100%.
But here is the part many people don’t want to hear…
Insurance will only work for you to the level of your understanding.
You see, before you even think of buying insurance, you need more knowledge than someone entering the stock market.
Yes… I said it.
Because in insurance, it’s not just about paying premium…
It’s about understanding:
What exactly you are buying
What is covered and what is not covered
The conditions that must be met before you get paid
And the process to follow when things go wrong
Most people skip this part…
Then when problem happens… they shout “scam”
As your Financial Literacy Advocate, Let me break something down for you…
The same way accounting principles are the same all over the world…
That is the same way insurance works.
The same foundation used in the US, UK, South Africa…
Is the same thing used in Nigeria.
Because… Money does not have two languages.
And.. Risk does not have two definitions.
Insurance is built on one principle globally…
Risk management.
So the problem is not Nigeria…
The problem is ignorance.
Now let me tell you the secret that nobody will tell you…
Every insurance company in the world is designed to do one thing…
Reduce how much they pay out.
Yes… read that again.
They are businesses… not charity organizations.
You pay premium… they manage risk…
And when something happens, they check:
Did you follow the policy?
Does this claim meet the conditions?
Is there any breach?
If you don’t understand your policy…
You have already lost before you even start.
Now here is where many people are completely blind…
Between you and the insurance company… there is a system.
There are professionals called Loss Adjusters.
These are not your enemies…
And they are not the insurance company’s friends.
They are independent professionals regulated in Nigeria by NAICOM.
Their job is simple…
To investigate what happened
To assess the damage
To ensure the insurance company does not cheat you
And also ensure you are not cheating the system
They stand in the middle…
Yet most Nigerians don’t even know they exist.
Let me ask you a simple question…
For those shouting “insurance is scam”…
How many of you have ever:
Read your policy document properly?
Engaged a loss adjuster when your claim was denied?
Reported the insurance company to NAICOM?
Be honest with yourself…
Most of you did nothing.
You just complained…
Now let me open your eyes to something deeper…
Insurance is not for enjoyment…
It is for survival.
It is not for when life is good…
It is for when life breaks.
That moment when your shop burns
That moment when accident happens
That moment when sickness drains everything
That is when you will understand the power of structure.
And here is the painful truth…
Even Mama Ngozi that sells tomatoes in the village can afford insurance.
Yes…
Some policies are as low as ₦2,000 monthly.
So the issue is not affordability…
The issue is awareness.
Let me say this clearly…
Anything you don’t understand will always look like a scam to you.
The same thing happened when people said stock market is scam.
Today… those who understood it are building wealth quietly.
That’s why I have maintained that Financial literacy is not about arguing online…
It is about understanding how money, risk, and protection works.
That is why platforms like Fokona exist…
To break down complex financial concepts
Into simple language anybody can understand
Even Mama Ngozi.
In my next posts…
I will show you:
How to choose the right insurance company
How to pick the right policy
And how to get your money… even when they refuse to pay
Yes… including how they can be forced to pay more.
Because knowledge changes everything.
For now… just remember this…
Insurance is not a scam.
Ignorance is.
See lessSome people think insurance company is a scam due to their past experiences of not getting their claims. But it's not so,there are different types of insurance and their terms and conditions. For example we have the life assurance which covers : *Retirement plan *Children university education *ProjeRead more
Some people think insurance company is a scam due to their past experiences of not getting their claims.
But it’s not so,there are different types of insurance and their terms and conditions.
For example we have the life assurance which covers :
*Retirement plan
*Children university education
*Project fund plan
Before you buy any of these plan you need information on which one suit you and your family.
For children university education and retirement plan age of the policy holder is need to know how many years is the validity of contract.
Another thing is breaching the contract ,so it’s important to get the information about the terms and conditions before buying a policy.
See lessThere is always a form to fill and once you don’t fill the proper information,it can affect the claims at long run.
Lastly do your research on the insurance company and their credibility before you get insured.
I work with a reputable organization that have a financial structuring for our insured.
This is one of the most important questions anyone in Nigeria should ask before buying insurance. Short answer: Insurance in Nigeria is NOT a scam — but many people still struggle to get claims paid because of misunderstandings, poor policy choices, and sometimes bad insurance companies. Let me breaRead more
This is one of the most important questions anyone in Nigeria should ask before buying insurance.
Short answer: Insurance in Nigeria is NOT a scam — but many people still struggle to get claims paid because of misunderstandings, poor policy choices, and sometimes bad insurance companies.
Let me break it down simply 👇
Is Insurance a Scam in Nigeria?
No. Insurance is a legitimate financial protection tool used worldwide — including Nigeria.
Insurance companies in Nigeria are regulated by
National Insurance Commission (NAICOM)
This means:
They are licensed
They must meet capital requirements
They must follow rules
They can be sanctioned if they refuse valid claims
So insurance itself is not a scam.
But here’s the reality 👇
👉 Some people don’t get paid because:
They didn’t understand the policy
They violated terms
They bought from weak companies
Or sometimes the insurer delayed unfairly
Why Some People Get Paid (While Others Don’t)
People Who Usually Get Paid ✔️
These people:
Read the policy document
Disclose correct information
Pay premiums consistently
File claims properly
Follow conditions
Example:
Someone buys motor insurance
Accident happens
Reports within 24–48 hours
Submits documents
Gets paid
Simple.
People Who Usually Don’t Get Paid ❌
These are common reasons:
1. Non-Disclosure (Very Common)
Example:
You say your car is for personal use
But you’re using it for commercial transport
Accident happens
Insurance company rejects claim
Because you gave wrong information
2. Policy Exclusions
Every insurance policy has what it does NOT cover
Example:
Flood damage may not be covered
Intentional damage not covered
Driving without license not covered
People often don’t read this part.
3. Policy Lapse (Premium Not Paid)
If you stop paying:
Policy becomes inactive
No claim will be paid
4. Late Claim Reporting
Some policies require:
Report within 24 hours
Or 48 hours
If you report late → claim may be rejected
Why Nigerians Distrust Insurance
There are some real reasons too:
1. Poor Awareness
Many people don’t understand insurance
2. Bad Experience From Weak Companies
Some small insurers delay claims
3. Slow Claims Process
Documentation can be long
4. Cultural Beliefs
Some people think:
“Nothing will happen to me”
“Insurance is a waste”
Insurance vs Saving or Investing
This is very important:
Insurance is NOT for making money
Insurance is for protection
Example:
You save ₦500k
But accident costs ₦5 million
Your savings cannot cover it
Insurance can.
So:
Savings = build wealth
Insurance = protect wealth
You actually need both.
What To Check Before Choosing Insurance in Nigeria
Always check these:
1. Company Reputation
Choose well-known insurers like:
Leadway Assurance
AXA Mansard
AIICO Insurance Plc
Custodian Investment Plc
These companies usually have better claim records.
2. Understand What Is Covered
Ask:
What does this cover?
What is excluded?
How do I claim?
3. Claim Process
Ask:
How long does claim take?
What documents needed?
4. Financial Strength
Big companies are more reliable
If Insurance Company Refuses to Pay — What Can You Do?
You have options:
Step 1 — Write Complaint to Insurance Company
Most disputes are resolved here
Step 2 — Report to NAICOM
You can complain to: National Insurance Commission
They investigate complaints
Step 3 — Use Insurance Ombudsman
You can escalate further
Step 4 — Legal Action (Last Option)
Rare but possible
When Insurance Makes The Most Sense in Nigeria
Insurance is most useful for:
✔️ Car insurance
✔️ Health insurance
✔️ Life insurance
✔️ Business insurance
✔️ Property insurance
Simple Rule (Very Important)
Think of insurance like:
💰 Saving protects small problems
🛡️ Insurance protects big problems
You need both.
My Honest Conclusion
Insurance in Nigeria:
❌ Not a scam
⚠️ But requires understanding
✔️ Works if used properly
People who understand it benefit a lot.
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