Insurance in Nigeria: Why "God Forbid" Is Not a Strategy

In Nigeria, when you mention insurance, the most common response is "God forbid!" or "It is not my portion."

While faith is important, it is not a financial strategy. Accidents, illnesses, and theft happen to good people too. Insurance transfers the financial burden of these disasters from your pocket to an insurance company.

If you drive in Nigeria, you MUST have insurance. But there are two main types:

1. Third Party (Mandatory):

• Cost: Approx. ₦15,000 - ₦20,000 per year.
• What it covers: Damage you cause to other people's cars or property.
• What it DOES NOT cover: Your own car. If you bash your bumper, you fix it yourself.

2. Comprehensive:

• Cost: Usually 3-5% of your car's value.
• What it covers: Everything. Fire, theft, vandalism, and accidents (even if it's your fault).

Many Nigerians unknowingly drive with fake insurance papers bought at licensing offices.

The Test:

1. Go to www.askniid.org (Nigerian Insurance Industry Database).
2. Click "Check Policy Status".
3. Enter your Car Plate Number or VIN.

If your details do not appear, your insurance is FAKE. You have no coverage, and VIO can impound your car.

One major illness can wipe out your savings.

NHIS (National Health Insurance Scheme): Mostly for federal workers, but also has voluntary contributors. Very cheap, but limited hospital choice.

Private HMOs (AXA, Reliance, Hygeia):

• Cost: Plans start from as low as ₦4,000/month.
• Benefits: Access to private hospitals, surgeries, and maternity care.

Tip: If you run a business, getting HMO for your staff is a great way to retain talent.

Life insurance is not just about death. Many policies are Savings + Protection plans.

For example, you can contribute monthly for 5 years. If you survive (which we hope you do!), you get your money back with interest. If you pass away, your family gets a large lump sum to pay for school fees and rent.

Scenario: You hit someone's car.

What to do:

1. Do NOT fight: Stay calm.
2. Take Photos: Snap the damage on both cars and the scene.
3. Exchange Info: Get their number and insurance details.
4. Call your Insurer: Report the incident immediately.

Note: Most insurers require you to report within 24-48 hours.