• 30 Jun, 2025
• Faith Kegh
• No comment

Insurance Claims in Nigeria: What Policyholders Need to Know.

Insurance is designed to provide financial relief in times o

f crisis, but for many Nigerians, receiving a claim payout remains an uphill battle. Despite holding valid policies, numerous policyholders face frustrating delays or outright denials. This article explores why this happens and how claimants can improve their chances of timely settlement.

In August 2024, Nigeria’s Commissioner for Insurance, Olusegun Omosehin, made it clear that the industry must shift toward prioritizing claim settlement. “We must find reasons to pay all genuine claims,” he said, signaling a renewed regulatory focus on rebuilding public trust. Since then, the National Insurance Commission (NAICOM) has taken steps to spotlight unpaid claims and hold insurers accountable, including publishing consumer complaints.

At a recent Insurers Committee meeting, claim settlement again took center stage. Moruf Apampa, Vice Chairman of the committee’s subcommittee on communication, affirmed that the industry was aligned with NAICOM’s direction. He urged insurance companies to streamline claims processes and ensure legitimate claims are paid promptly.

Still, despite regulatory pressure, policyholders remain vulnerable. NAICOM data shows that more than 1,500 complaints have been lodged, involving over ₦24.5 billion and \$22.5 million in unsettled claims especially in life, group life, and motor insurance.

One case involves Bose Abidemi, who has been waiting five years for a life insurance payout after her uncle, who had named her as a beneficiary, passed away. Her continued attempts to claim the benefits have only added emotional distress to an already difficult time. Similarly, a Lagos entrepreneur was denied coverage after his car accident claim was rejected for not using a partner repair center despite the center’s distance from the incident site.

These real-life scenarios reflect a common perception: that insurance companies use technicalities or documentation loopholes to avoid paying. Such practices have long damaged the industry’s credibility.

      Understanding the Claims Process

Coronation Life Assurance defines an insurance claim as a formal request for compensation based on the policyholder’s coverage. This could follow events such as accidents, fires, thefts, or even death. To access benefits, a claim must be properly filed and the process can either be smooth or complicated, depending on how well-prepared the claimant is.

To help policyholders navigate this, insurers offer several tips:

      1. Understand Your Policy

The first step is knowing exactly what your policy covers—and what it doesn’t. Read the fine print, understand exclusions, limits, and deadlines. This knowledge helps manage expectations and reduces surprises when filing a claim.

Legal experts also recommend reviewing policies thoroughly and seeking clarification or legal advice before signing. This proactive approach ensures that there are no gaps in coverage or misinterpretations.

      2. Organize Documentation

Lack of documentation is one of the biggest reasons claims get delayed or denied. Essential documents may include medical records, death certificates, identity verification, police reports, or repair estimates. Having everything ready speeds up the process.

      3. Be Honest and Transparent

Trust is essential in the claims process. Any attempt to exaggerate or omit facts could raise suspicion and trigger further investigation, delaying payment. Even when additional information is requested, beneficiaries must respond truthfully and promptly.

      A Changing Industry Climate

With increased scrutiny from regulators and the threat of sanctions for non-compliance, insurance companies in Nigeria are under more pressure than ever to fulfill their obligations. But policyholders also have a role to play by staying informed, organized, and honest.

As trust is slowly rebuilt, better outcomes are possible for everyone involved in the insurance ecosystem.

Faith Kegh

Content & Editorial Manager – Leads the creation, review, and publication of high-quality news and media content. She ensures that all editorial work reflects the organization’s standards of accuracy, professionalism, and relevance, while also engaging and informing the audience.

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