Insurance: Nigerians unaware of Takaful product
NAN-HE-23
Insurance
By Lucy Nwachukwu
Abuja, July 20, 2017 (NAN) Most Nigerians resident in the Federal Capital Territory (FCT) are still ignorant of some insurance products such as the Takaful insurance in the market.
A News Agency of Nigeria (NAN) correspondent who interviewed a cross section of the residents reported that majority of them were unaware of the existence of the product.
Takaful is a type of Islamic insurance where members contribute money into a pooling system to guarantee each other against loss or damage.
It is based on Sharia, Islamic religious laws and principles and explains how it is the responsibility of individuals to cooperate and protect each other.
Ms Gloria Musa, a civil servant, who said she had a third party insurance policy for her Toyota vehicle, added that she had never heard about the Takaful insurance.
Mr Amos Terhemen, a public servant, however, said he was aware that the product existed but did not know what it entailed.
Mr Chukwuka Onyedika, a businessman, said he knew about the product but would not buy it because it was meant for Muslims alone.
Onyedika said,“ I am a businessman and I do a lot of insurance. All my vehicles are insured and even some of my businesses are also insured because I know the benefit of insurance.
“However, I cannot do the Takaful insurance because everything about it tells you it is specifically for Muslims and I am a very good Christian, so I cannot partake in it.
Another business man, Mr Micheal Obande, said he heard about the Takaful product but was yet to buy into it because most his friends discouraged him from buying the product.
Obande said “ I know about the Takaful insurance but I think so many people are still ignorant of the benefits of the product.
“I will advise that more awareness be created so that people will understand the benefits of the products and be encouraged to begin to buy it”.
Meanwhile, an insurance expert, Mr Paul Ibe, said Takaful was one of the measures approved by the National Insurance Commission(NAICOM) to ensure inclusiveness in the sector.
Ibe, Head of Technical, Unity Kapital Insurance, said “the reason people have not really taught it deep to take Takaful is because they feel it has a form religious connotation, a religious bias.
“Takaful is basically a form of insurance from Islam, so our people look at the source that is why it has not been so deep as it is supposed to be.
“Takaful is a form of insurance which is good for everybody, it is just like going to the market and finding variants of products and then deciding the one that fits you most and you buy it.
“Takaful says, if after the period of insurance and nothing happens to you, we will share the profit from our operations between you and me, so it is very good.
However, Mr Rasaaq Salami, the Head, Corporate Affairs, NAICOM, said the commission was working at ensuring more awareness on Takaful to increase people’s participation.
According to Salami, the commission will soon start running jingles in some radio stations, using the major languages in the country.
“We are looking at endorsement of some popular figures, including traditional rulers to help increase the awareness of this product in the country.
“We will also do awareness engagements, do town hall engagements in areas where there are likely to be lots of public consumers.
“ A lot is already on ground and the commission will not relent to do more to ensure increased awareness of the public on the gains of Takaful and other insurance policies in the country,’’ Salami said.(NAN)
LCN/IA
(Edited by Idris Abdulrahman)