Do I need Health Insurance?

Do I need health insurance?

To determine whether you need health insurance or not we first need to deduce what health insurance is. Only then can you make an informed decision as to whether you need it or not.

What is health insurance?

Health insurance covers medical expenses for illnesses, injuries and conditions. When taken out privately by an individual it is something paid for by the individual, which differs from when taken out through an employer.

Health insurance is a type of insurance coverage that covers the cost of an insured individual's medical and surgical expenses.

A health insurance policy works in a similar way to car insurance or home insurance, you choose a plan and agree to pay a certain rate, or premium, each month.

Why should I get health insurance?

• Because accidents or health problems can happen at any time
• High quality private Medical expenses can be high
• To gain access to a network of private doctors and hospitals that have negotiated lower rates with insurance companies
• To pay and keep track of medical payments quickly and easily
• To safeguard your way of life and your family’s physical and financial wellbeing without having to rely on free medical services provided by any government

Is health insurance worth it?

This question very much depends on your individual preferences and circumstances. If you do not want to rely on government hospitals, waiting lists or clinics and can afford the premium then yes it can be worth it for you.

Private health insurance will give you access to quicker services, provide better hygiene standards, you can push for more checks and you can gain access to specialist care.

For health insurance in Nigeria check out Mansard Health Insurance

Do I need a Goods in Transit Insurance for my Business in Nigeria?

Introduction
There are risks involved in the transportation of goods from one point to another, either due to the nature of the goods being transported or due to the mode of transportation. It is not uncommon to see valuable goods littering accident scenes, sometimes leading to the occurrence of other accidents. The financial loss from such incidents can be very high and in some instances can cripple a small or medium scale enterprise. Goods-in-Transit insurance, therefore, covers the loss or damage to goods (moveable property) while in transit by land, rail or inland waterways but within the territorial water ways of Nigeria.

A Goods-in-Transit policy is usually arranged to indemnify the insured for theft or loss of goods while in transit, or damage caused by accidents during transit. It covers other damages in transit and, in some cases, the consequences of any untoward delay.

In view of the fact that the Goods-in-Transit cover provided as an add-on to some other policies is limited, having this type of insurance will usually give a company an edge over competitors that do not carry Goods-in-Transit insurance and peace of mind for them and their customers. Without this cover, a transport company could face devastating expenses that could put it out of business. Depending on who is responsible for the goods at any particular time, a Goods-in-Transit policy can be instituted by the owner of the cargo or the transit company (or the haulage company), for protection against liabilities under a haulage contract.

1.0 Scope of Cover
There are two major types of Goods-in-Transit cover:

1.1 All-Risks Cover: This is arranged to indemnify the insured for accidental loss or damage (by any form) while the insured’s property is in transit, being loaded and/or unloaded and while temporarily housed in the ordinary course of transit subject to specified policy conditions.

1.2 Restricted Cover: This type of cover is limited to specific risk exposure. It covers losses due to the occurrence of certain events such as:
a. Fire, explosion, lightning or flood;
b. Collision of the conveyance carrying the goods with an external object;
c. Overturning, jack-knifing or derailment of the land conveyance carrying the goods;
d. Grounding, sinking or capsizing of the vessel carrying the goods or livestock;
e. Crashing or forced landing of the aircraft carrying the goods;
f. Discharge at a port of distress;
g. Loss by theft only as a result of accidental collision or overturning of the conveying vehicle.

A Goods-in-Transit policy can be extended to cover the cost of debris removal following an accident, loss or damage discovered after delayed unpacking, similar risks in an acquired company and risk exposure between the insured’s premises and the premises of a professional packer.

2.0 Types of Goods-in-Transit Coverage
Goods-in-Transit insurance can be arranged in any of the following ways:

2.1 Single Transit: Cover can be arranged for a single trip from one part of the country to the other within a short period. For example, transporting biscuits from Lagos to Ibadan for a specified period (two days, between August 10 and August 12). In practice, a few days may be allowed in between (say August 10 to August 14) to cater for unforeseeable events which might make it impossible for the insured to transport the goods during the specified period. It is recommended that the insured communicates inability to conclude the delivery of goods under this arrangement, to the insurance company, immediately.

2.2 Declaration Basis: Under this arrangement, all the insured’s Goods-in-Transit risks are automatically covered for a period (usually 12 months). At the commencement of the policy an estimate is made of the total value of goods to be transported by the insured during the 12 (twelve) month period and the actual value of goods so transported will have to be declared on the expiration of the insurance period. A limit per carrying (per trip) is usually advised in order to inform the insurers of the maximum exposure at any one time.

The premium paid, which is usually based on the estimated annual carriage, will then be adjusted based on the actual carriage at the end of the insurance period. If the Estimated Annual Carriage (EAC) is greater than the Actual Carriage then a return premium is due to the insured. If, however, the EAC is less than the Actual Carriage, then additional premium is due to the insurer. Visit www.mansardinsurance.com for more..

Public Liability: Part 2

This week, we will continue from where we stopped last week on Public Liability Insurance.

7.0. Basic Exclusions
The following are some of the exclusions under employers’ liability insurance:
(a) Insured’s liability to employees of contractors to the insured;
(b) Bodily injury intentionally caused or aggravated by the employer;
(c) Any injury by accident or disease directly attributable to act of foreign enemy, war and nuclear risk;
(d) Any liability of the insured which attaches by virtue of an agreement;
(e) Punitive or exemplary damages because of bodily injury to an employee employed in violation of the law;
(f) Accidents resulting from riot, strike and civil commotion; however, this exclusion can be covered on payment of additional premium;
(g) Accidents occurring outside the workplace or outside working hours; this exclusion can also be covered upon payment of additional premium.

8.0. Benefits of Employers’ Liability Insurance
8.1. Employer: This policy guarantees the employer financial security for his/her business in the event that an employee is involved in an accident for which the business is liable, especially for some industrial diseases that manifest after a long period. The employer will also be seen as actively interested in the welfare of its employees.

8.2. Employee: This insurance policy also provides security for employees. Hence, employees are able to work without any fear of being abandoned in the event of an accident. This increases the productivity of employees.

9.0. Occupiers’ Liability Insurance
Occupiers’ liability insurance is one of the compulsory insurances in Nigeria. It was created to satisfy the provisions of section 65 of the Insurance Act of 2003. Section 65 of the Act requires all owners or occupiers of ‘public buildings’ to take up occupiers’ liability insurance to cover their legal liabilities with respect to loss of or damage to property or bodily injury suffered by any third party user of their premises.

Examples of possible scenarios where another party can claim under occupiers’ liability insurance are where personal injury results from accidents in a neighbour’s house such as slips, trips or falls within the property; or being bitten by their dog.

Similarly, if you have been injured, through no fault of your own, in another place such as an airport, public swimming pool, or shop, you may be able to sue the insured occupier for compensation.

An occupier is anyone who owns or occupies the premises, or has a ‘sufficient degree of control’ over an area; and might be a local authority, a company, or an individual. Consequently the occupier is responsible for the safety of those premises or that area, for the benefit of other people.

‘Public building’ under this Act includes a tenement house, hostel, a building occupied by a tenant, lodger or licensee and any building to which members of the public have access for the purpose of obtaining educational or medical service, or for the purpose of recreation or transaction of business.

10.0 Scope of Cover
The occupier liability policy can be arranged to include the following covers.

10.1 Personal Liability: This section cover payments for all sums for which the insured, spouse, relatives and anybody living with them is liable to pay for injury and medical expenses to any third party for accidental injury while on the insured’s premises.

10.2 Public Liability: This pays for legal liability of the insured for accidental damage to public utilities (underground water pipe, electricity cable, etc.) or any underground installation. Injury, death or property damage to any member of the public arising from excavations extending to the insured’s property is also covered by this section.

10.3. Accidents to Domestic Servants: In the event of a bodily injury or disease arising out of and in the course of employment of any domestic servant like gardener, driver, security guard, etc., this section will cover the insured’s liability to compensate these employees.

11.0 Sanctions for Non-compliance
It should be noted that refusal to take up this insurance policy attracts a fine of N100, 000 or one (1) year imprisonment, or both, upon conviction.

Conclusion
All of the above liability insurances help protect the assets of the business, homeowner or occupier.

To save or to invest?

The global economy is slowly starting to recover and the Nigerian economy is amongst them. With more people now in work and people earning again the question has arisen – should one save or invest for the future?

Studies have shown that the Nigerian economy although recovering, still has an unstable Naira value. The current high inflation rate is not contributing to the recovery or the stability of the nation’s economy.

So the question remains, should one invest their money or save it?
Financial experts will tell you to build a good portfolio of investments rather than leaving money in a savings account. It is wise to remember that investment, with its high returns, has the potential of enhancing ones earning capacity than savings does. Industry experts support the notion of it being good for one to save, but it is also good for the person to learn to invest a good portion of the savings in a long-term plan, capable of yielding returns.

Savings vs Investing – the risks
The fact is that saving money in a savings account is a low risk approach although the yield may be lower. With investments the overall yield can be a lot more but the risk involved is greater. At the end of the day it comes down to personal preference and circumstance. In an ideal scenario one would be able to put some money into savings whilst also making good intelligent investments.
 

Investment options available in Nigeria
•    Buy land or property
•    Buy shares and stocks
•    Bonds and debenture

Whether you are saving, investing or doing both, always remember to periodically check your choices to ensure that they are suitable for your current investment goals.

Skill Acquisition on Mansard Safe Cruise

Is skill acquisition of any importance; Yes or No?

Join Mansard Safe Cruise this evening at 6:10pm on Smooth 98.1fm and let us know what your thoughts are on this.

Mansard - Thinking Insurance

What is Travel Insurance

With foreign holidays and international business trips becoming more frequent, travel insurance has become a necessity. Yet, many of us do not understand what travel insurance actually is.  Travel insurance can be divided into two main categories:

• Trip Cancellation Insurance
• Travel Medical Insurance

Trip cancellation insurance consists of:

• Trip Cancellation - If you cancel your trip prior to departure, you will be able to claim back your deposit or entire holiday cost
• Trip Interruption - If you need to return home before your scheduled departure, the policy will help you pay for flights and any other arrangements.
• Emergency Medical Expenses - Your travel insurance package will pay for your medical costs whilst abroad
• Emergency medical Evacuation - The travel insurance policy will arrange and pay for transport to the nearest medical facility. Some policies will also pay for your flight home if special arrangements are needed
• Repatriation of Remains - If you do unfortunately pass away while on your travels, your travel insurance policy will pay to have your remains brought back
• Baggage - Most travel insurance policies will cover lost luggage, damaged luggage and late luggage.
• Accidental Death & Dismemberment - The policy would pay out if you died in an accident or post two limbs in the accident
• Miscellaneous - Some policies will also cover extra items such as delayed flights, emergency cash transfer and ID theft.

Travel Medical Insurance
This type of travel insurance focuses mainly on medical benefits. This type of policy will specialise in medical fees, evacuations and other medical emergencies. Cancelled or delayed trips will not be covered.

Travel Insurance Excess
Both types of policies will most likely have some form of excess. The size of the excess will depend on the specifics of the claim and the cost of the premium. Please remember to double check and query your excess with the provider before you take up the insurance.

Different Types of Car Insurance

There are three main types of motor insurance products; they offer different levels of cover for your vehicle. In most cases third parties are not affected by which level of cover you have. The three main products are:

1.       Third Party

2.       Third Party Fire & Theft

3.       Fully Comprehensive

When shopping for car insurance quotes it is a good idea to check the premiums for all three types, but before selecting the quote make sure you are comfortable with the level of cover. Drivers of expensive cars tend to choose fully comprehensive. New and young drivers often choose Third Party as it is the cheapest option.

Third Party Car Insurance
If you choose third party car insurance you will most likely pay less for your premium, but the level of cover is minimal. If you were to have an accident and it was your fault then your insurance provider would only pay out for loss to other vehicle, you vehicle repair costs will not be covered. If the other driver is at fault then it does not make a difference what level of cover you have. 

Third Party Fire & Theft Car Insurance
As above but with the additional peace of mind that if your vehicle was stolen or burned it would be covered. So, your road risk cover is still the same as third party only cover. This level of cover is more popular than third party only. Be advised that there will be some level of excess applied if you were to make a claim – check your policy for exact details.

Full Comprehensive Car Insurance
This level of cover includes the first two levels plus, if you were to have an accident and it was your fault your car repair costs would be covered. This level of cover is the most expensive but it offers full protection in the event of an accident. Again, there will be excess amounts applied to any claim so check your policy wordings.

Keyman Insurance

What is Keyman/Person insurance?

It is an important form of business insurance, which is taken out by the business to compensate for financial losses that might arise from the death or extended incapacity of an important member of the business. Keyman insurance does not indemnify the actual losses incurred but compensates with a fixed monetary sum as specified on the insurance policy.

Since keyman insurance is more of a type of insurance policy it may include other insurance used for other business specific purposes, including:

• Buy/Sell Insurance (Shareholder Insurance)
• Debt Protection
• Revenue Protection

Keyman insurance can provide compensation for losses in four categories:

• Losses related to the extended period when a key person is unable to work
• Insurance to protect profits
• Insurance to protect shareholders or partnership interests
• Insurance for anyone involved in guaranteeing business loans or banking facilities

Who is the keyman in a business?

A key person can be anyone directly associated with a business whose loss can cause financial strain to the business. In a small business, it’s usually the owner or founders, the people whose absence would sink the company.

Why is keyman insurance important in a business?

The purpose of keyman insurance is to help a business survive the sudden loss of the person who makes the business work. The business can use the insurance proceeds for expenses until it can find a replacement person, or, pay off debts, distribute money to investors, pay severance to employees and close the business down in an orderly manner.