Insurance Products

Property Insurance

Fire & Special Perils

A standard fire policy covers Fire (whether resulting from explosion or otherwise), Lightning, and Explosion of boilers or gas used for domestic purposes for lighting or heating as long as the building does not form part of a gas work. For an additional charge, the policy can be extended to include special or additional perils such as storm, flood, burst pipes and overflowing of water tanks, impact by vehicles, malicious damage, earthquake damage, aircraft damage, bush fire, explosion, tornado and cyclone, and riot and strike. There are several extensions that amplifies this policy.

Industrial All Risks

An industrial all risk policy is a ‘packaged’ policy designed to cover material loss/damage and business interruption. include risks of fire and special perils, consequential loss following fire, accidental damage, burglary, money, goods-in-transit and fidelity guarantee.

Burglary

This policy offers protection against loss or damage, by theft, of property belonging to the insured or for which the insured is responsible.

All Risks

This policy grants a wide range of cover for individual commercial items such as jewelries, paintings, small moveable tools of trade, etc. It provides protection beyond the normal scope of fire and burglary policies as loss to the subject matter due to accidents, larceny, infidelity, transit and temporary housing are covered. This policy is most suitable for expensive personal and/or commercial non-heavy equipment moved frequently from one place to another, e.g.. laptop computers, mobile phones, cameras, fieldwork equipment, etc.

Houseowners/Householders

This policy can be effected by the owner of the building (houseowner) or tenant (householder) in respect of the building and/or contents. It covers fire/special perils, burglary/theft, public liability, personal accident, and rent.

Goods-In-Transit

This insurance covers moveable property while in transit by land, air or sea. The type of covers available are All Risk (which covers loss or damage by any accident or misfortune while in transit, course of loading/unloading, and while temporarily housed) and Restricted cover (which indemnifies the insured against loss or damage resulting from loss by fire, accidental collision, impact or overturning of the conveying vehicle, and theft following accidental collision or overturning of the conveyance).

Pecuniary Insurance

Fire Consequential Loss

This policy is mainly suitable for manufacturers and it covers loss of earning power following damages/loss caused by fire/special perils. It makes good (net) profit lost, fixed/standing charges, cost of working/additional expenses, wages and auditors’ fees.

Machinery Consequential Loss

Machinery consequential loss policy covers loss of revenue resulting from interruption or interference to business caused by an accident to the machine(s) insured.

Money

Money policy provides cover against loss of money through theft, fire and other causes while in transit/on premises, in a locked safe/strong room, personal custody, in cash boxes, and damage to safes.

Fidelity Guarantee

This policy covers an organization against all direct pecuniary loss sustained through any act of fraud or dishonesty committed by its employee in the course of employment. Acts covered include stealing of money or stock, falsification of account, etc..

Accident Insurance

Workmen’s Compensation

The policy is required of employers by law to provide compensation to workmen for death resulting from injury, permanent total disability, permanent partial disability, temporary disability, and medical expenses and cover is limited to official working hours. In Nigeria, there are provisions relating to compensation both in the common law and specific legislation passed by government. The principal legislation on workmen’s compensation in Nigeria is the Workmen’s Compensation Decree of 1987.

Group Personal Accident

This policy covers insured persons on 24 hour basis against death, permanent and temporary disability or medical expenses.

Medical Expenses

This policy cushions the effect of high cost of medication. It is taken on group or individual basis to cover surgeon and anaesthetist fees, hospital and nursing home fees, and doctor’s bills, specialists’ fee and other medical expenses. In Nigeria, a well-defined national health insurance scheme (NHIS) has been introduced with similar benefits.

Liability Insurance

Public Liability

This policy is essentially for corporate organizations and it is designed to indemnify the insured against all sums (including litigation costs and expenses) for which he/she is legally liable in respect of accidental bodily injury to or illness of any person (resulting to death or not) and accidental loss of or damage to property, resulting in connection with the business of the Insured. Liability in respect of manufactured or supplied products is not covered by public liability.

Products Liability

Insurance by this policy covers legal liability to pay compensation for death, bodily injury or property damage caused by any defect in any goods (or their containers) .

Personal Liability

The policy protects the individuals against legal liabilities that may occur in their private capacities from third parties for death, injury, illness or property damage arising out of their fault or negligence.

Environmental Impairment Liability Policy

This is a new class of policy in Nigeria. It covers specifically losses or damage resulting from pollution or contamination which is not accidental and sudden in origin. In rare cases, this cover added by endorsement to other policies such as public liability, fire & special perils, professional indemnity, etc.

Professional Indemnity

The policy protects the insured against legal liabilities that may arise by reason of any neglect, error or omission committed in a professional capacity by the insured or by any partner, director, or any person who may be in his employment.

Warehousing

Warehousing policy offers protection against loss or damage to third party property in the insured’s care as bailee or warehouseman. It provides indemnify for third party property consequent upon the negligence, breach of duty, incompetence or error of judgment of the insured, his agents, employees or any other person for whose acts the insured is responsible. It also grants protection against any legal liability arising from loss of life or bodily injury and other damage occurring within he premises under the control of he insured emanating from the keeping of the property.

Engineering Insurance

Erection All Risks

Erection All Risks policy protects the insured who manufactures or erects plants and machinery, against financial loss due to sudden and unforeseen damage to property, machine, structures, installations, etc. on the site, while being stored, erected, tested and maintained. The cover is taken out on Single Contract or Individual Basis (where each contract work is individually rated and insured) or Open Cover Basis (where a general description of contract works to be undertaken by the insured will be given and any erection contract falling within the description is automatically covered subject to a maximum limit).

Machinery Breakdown

Machinery Breakdown policy is designed to indemnify the insured against damage to the machinery (already fixed and in use) caused by breakdown, principally from sources within the machinery. The breakdown could result to the machinery while working or at rest; or while being dismantled, moved or re-erected for the purposes of cleaning, inspection, repair or installation in another position within the premises. Cover is arranged on Individual Machine basis (where the insured selects only certain machines leading to saving in premium) or Blanket Cover basis (where all the machinery of the insured are to be covered).

Plant All Risks

This policy covers loss or damage to the insured from any cause outstanding the machine, e.g. fire, impact, explosion, theft, and to a limited extent public liability. The protection of the policy is meant principally for constructional plants/machinery with high values.

Contract Works

This aims at providing financial protection for the insured against loss, liability and/or damage that can occur during the building of a structure – whether accidental damages to the structure itself, the installations, on-sit plant and machinery or third party liabilities caused by the construction project. The policy can be issued in the name of the contractor only or contractor, sub-contractor and the principal.

Boiler/Pressure Vessel

This policy is specially designed for boilers and pressure plants due to their special nature coupled with the statutory requirements for periodical inspections. It offers protection for the insured against damage (except from fire) to the boiler or pressure plants and property owned by the insured; liability at law arising from death of or bodily injury to any person (except the insured’s own employees, workmen or members of his family) caused solely by the boiler/pressure vessel’s explosion or collapse, damage (other than by fire) to property held in trust or on commission or for which the insure is responsible, damage to property not belonging to the insured caused solely by explosion or collapse; and all costs and expenses of litigation recovered by claimant from the insured and all cost and expenses incurred with the written consent of the insurer.

Bonds

A bond is an undertaking by one party (guarantor or surety) that if another party (e.g. contractor or obligor) fails to perform his obligations to another party (principal or beneficiary), the guarantor will make it good; although the liability of the guarantor does not arise until the obligor has actually defaulted. Types of bonds include Bid, Performance, Advance Payment, Credit, Maintenance, Retention Money, and Custom bonds, etc.

Electronic Equipments/Computers

A computer (electronic equipment) insurance policy is purposely designed for the computer and its peripheral, i.e. data carrying material and air-conditioning plant. These are all parts of the electronic data processing installation and data-carrying materials including programs. The policy covers material loss or damage (theft or damage from external means and damage from internal sources, e.g. breakdown risks) and consequential loss (loss of data/increased cost of working).

Marine Insurance

Marine Cargo

Marine cargo insurance has undergone series changes and legislation to get where is presently is. Before 1976 all goods imported into Nigeria where insured by the overseas supplier; in 1976, the government of Nigeria passed a decree making it compulsory to take marine policies in Nigeria on goods being imported into the country. There are presently three types of marine cargo covers available:

• • • • Institute Cargo Clauses A: This covers all risks (range of contingencies including breakages, damages, shortages, etc.) of loss of or damage to the subject-matter insured.§ Institute Cargo Clauses B: This type of cover is not as wide as clauses A. It covers only loss of or damage to the subject matter reasonably attributable to fire or explosion, vessel of craft, grounded, sunk or capsized; collision or contact of vessel, craft or conveyance with any external object apart from water; discharge of cargo at a port of distress; earthquake, volcanic eruption or lightning; entry of sea, lake or river water into vessel, craft, hold, conveyance, container, liftvan or place of storage; total loss of any package lost overboard or dropped whilst loading into or unloading from vessel or craft; and jettison and washing overboard. This clause does not cover claims for partial losses.

• • • • Institute Cargo Clauses C: This cover is the least. It provides cover against specific perils like under clauses B but excludes earthquake, volcanic eruption or lightning; entry of sea, lake or river water into vessel, craft, hold conveyance, container, liftvan or place of storage; total loss of any package lost overboard or dropped whilst loading into or unloading from vessel or craft; and washing overboard of cargo. This clause does not cover claims for partial losses.

Marine Hull

This policy is for all ocean going vessels including fishing trawlers and speed boats. Common perils covered include perils of the sea, rivers, lakes or other navigable waters; jettison; piracy; negligence of masters, officers, crew or pilots; barratry of master, officers or crew. Covers available are based on the Marine Insurance Act 1906 and are as follows:

• • • • Institute Fishing Vessel Clauses: This covers the vessel at all times (with or without a cargo of catch and fishing gear) including sailing without pilots, on trial trips, to assist/tow vessels/crafts in distress or render salvage services so far they are not carried out under a contract previously arranged by the assured, owners, managers, charters.

• • • • Institute Yatch Clauses: This policy covers loss, damage or liability arising from using the vessel while in commission; when being lifted or hauled out and launched, sailing or navigating with or without pilots, on trial trips and when assisting/towing vessels or crafts in distress; while laid up out of commission; while being used as houseboat; for loss or damage caused by latent defects in hull or machinery, breakage of shafts or bursting of boilers; the negligence of an person (excluding negligence or breach of contract). Certain extensions on prompt notice and/or payment of additional premium can be applied to the policy, e.g. continuation of cover when policy expires while the vessel is at sea, in distress or at a port/place of refuge or call, etc.

• • • • Institute Time and Institute Voyage Clauses – Hulls: The policy covers the vessel at all times while sailing or navigating with or without pilots; while on trial trips; while towing and/or assisting any other vessels or craft in distress or customary towage of the insured vessel in connection with loading and discharging operations.

• • • • Institute Time Clauses Hulls – Port Risks: This policy is for vessels that are being built or undergoing repairs in the ports or other stated places. It covers the vessel while proceeding to and from any wet or dry docks, harbours, ways, cradles and pontoons.

• • • • Private Pleasure Craft/Speedboat: This policy is similar to the Institute Yatch clauses though the private pleasure craft policy covers automatically claims due to outboard motor dropping off or falling overboard; while it excludes chemical action of petrol or oil on expanded plastic and wear and tear, depreciation and deterioration from use.

Aviation Insurance

• • Aviation Hull: Aviation Hull insurance is generally divided into three:

• • Hull – Loss or Damage – This is effected by the owner or operator against loss or damage to the aircraft itself.

• • Third Party Liability indemnifies the insured for all sums legally due to third parties resulting from accidental injury to or death of persons or damage to property on the ground and outside the aircraft provided such incident is caused directly by the aircraft or by objects falling from it. It also covers liability due to sound and pollution damage arising from accident occurring to the aircraft as well as liability for damage caused in the air to other aircraft r their occupants. It further covers legal costs incurred with the permission of the insurers in the defence of any claim.

• • Legal Liability to Passengers – This section indemnify the aircraft operator against all sums for which he is legally liable to pay in respect of accidental bodily injury to or death of passengers while entering into, being carried in or alighting from the aircraft or in the course of carriage by the operator. It also covers agreed costs incurred in defending an action under the section.

Aviation Cargo
This insurance cover is arranged on ‘all risks’ basis to indemnify against loss or damage to the property insured by any accident or misfortune arising from some fortuitous circumstances while on board or during loading and unloading from the aircraft; conveyance of the insured property to the airport; and during completion of the journey by best available means of transport following an accident or misadventure to or a forced landing or mechanical breakdown of the aircraft carrying the property insured.

Aircraft Products Legal Liability
This policy indemnifies the insured for legal liability directly or indirectly by reason of bodily injury including death any any time resulting therefrom, accidentally sustained by any person or persons, and loss of or damage to or destruction of property accidentally occurring including loss of use of the said damaged property. It also defends the insured against all suits alleging such injury, death, loss, damage, destruction or loss of use.

Personal Accident
This takes the format of the standard personal accident policy but endorsed to include flying (traveling as a ticket-holding passenger on an aircraft which is being flow on a regular air service operated by an air carrier licensed by the appropriate authority to carry passengers for hire and reward).

Airport Owners’ and Operators’ Liability: The policy is in three sections:

• • It covers the insured’s normal third party legal liability for bodily injury or property damage in or about the premises and elsewhere in the course of any work or of he performance of any duties by the insured or his employees in connection with the insured’s specified business.

• • It indemnifies the insured against loss of or damage to any aircraft or aircraft equipment (not belong to or owned by the insured) while on the ground, in the care, custody or control of the insured.

• • The policy also covers the insured against legal liability for bodily injury or property damage arising out of the possession, use, consumption or handling of any goods or products manufactured, constructed, altered, repaired, services, treated, sold, supplied or distributed by the insured or his employees after such goods or products have ceased to be in the possession or under the control of the insured.

Loss of Licence
This type of policy is often effected by the civilian aircrew themselves, their employers or professional associates against the contingency of being temporarily grounded or losing their licence permanently through injury or serious sickness. It indemnifies the insured for loss of income/earning resulting from any bodily injury or illness which makes him unfit to act in the capacity for which he holds the licence.

Compulsory Insurance
Compulsory insurance are those insurance made compulsory by law, frequently with the objective of providing protection to third parties and the general public.  There are five insurance products made compulsory by the Insurance Act 2003 and other related legislations.  These are:

Group Life Insurance

In line with the PenCom Act 2004, it is mandatory for all employers to maintain a Group Life Insurance Policy in favour of their employees for  minimum of three times annual total emoluments of each employee to provide for their beneficiaries in the event of death or disability.

Buildings Under Construction

Section 64 of the Insurance Act 2003  requires that o person shall have cause to construct any building of more than two floors without insuring with a registered Insurer, his liability in respect of construction risks caused by his negligence or the negligence of his servants, agents or consultants which may result in bodily injury or loss of life or damage to property of any workman on the site or of any member of the public.

Public Building Liability Insurance

It is required by Section 65 of the Insurance Act 2003 that every public building shall be insured with a registered insurer against the hazards of collapse, fire, earthquake, storm and flood.

Motor Vehicle (Third Party) Insurance Act 1945

The law stipulates that no person shall use or cause or permit any other person to use a motor vehicle on a road unless a liability which may thereby incur in respect of damage to a third party is insured with an Insurer registered under the Act.

Health Care Professional Indemnity Insurance

Section 45 of the NHIS Act 1999 makes it mandatory for licenced healthcare service providers to insure their legal liabilities to clients which may result from professional negligence.

Other Insurance Policies

• • • • Micro –InsuranceMicro-insurance is targeted at low income earners to withstand shock, shape their financial destines and save them from hardships.  Micro-insurance include the excluded that lack social or financial protection against disasters.

        Takaful Insurance
        Takaful insurance provides an alternative to any segment of the populace opposed to the modus operandi of the conventional insurance. It helps safeguard losses the Halal way.