I incorporate the premium as runing cost and amortized it against gross income

Wait! Did you get a loan to force you into saving the initial 10M?

If not, then your proposition isn't positive. Quite worried about your assertion that taking and servicing a loan is a good way to maintain a saving culture.

But I guess you have a better understanding of yourself, health and saving culture.

Do note that there variable factors that evolve with times and seasons.

9jatriot:
Okay, maybe a 10M TB for 8M loan may suffice. The whole idea for me is to enforce a savings culture that probably resulted in the 10M anyway.

olujaidi:


Really?! He should throw money away because he can absorb loss? If he didn't have insurance would he still be in business? NO
Nna na wa o!

Insurance makes sure its not a total loss for him. He always gets something back even if its not the full sum assured. He might even get the full sum assured if he paid for excess buyback. Instead of digging deep from his own funds (which could have been deployed to other productive uses) to replace the destroyed asset and then suffer the opportunity cost, he gets paid by the insurance company for it.

He actually gains on two ends: he gets money to defray the cost of replacement and his own funds are preserved for other uses.

ahiboilandgas:
I pay premiums regularly,G.i.t and comprehensive my boss told me am paying for my happiness ...and it true insurance firms have rescues me 2 time ...total loss 19m insurance also 17m

The insurance company is not father chrismas, they are there to make profit. Do you know what they do ?

They estimate the chances and rate of an accident occurring, they calculate expected loss PA for each customer category and bill you higher.

For example if ur expected loss per month is 5k they will bill you 6k. Effectively they are recovering what ever they paid you plus profit over time. In short, you pay more over a longer period.

If you can absorb shock it is always better not to insure.

By d way, if you keep having accidents they will revise ur premium upwards why is that?

ositadima1:





The insurance company is not father chrismas, they are there to make profit. Do you know what they do ?

They estimate the chances and rate of an accident occurring, they calculate expected loss PA for each customer category and bill you higher.

For example if ur expected loss per month is 5k they will bill you 6k. Effectively they are recovering what ever they paid you plus profit over time. In short, you pay more over a longer period.

If you can absorb shock it is always better not to insure.

By d way, if you keep having accidents they will revise ur premium upwards why is that?

But what if ur expected loss is 5k and u lose 10k?

ositadima1:





The insurance company is not father chrismas, they are there to make profit. Do you know what they do ?

They estimate the chances and rate of an accident occurring, they calculate expected loss PA for each customer category and bill you higher.

For example if ur expected loss per month is 5k they will bill you 6k. Effectively they are recovering what ever they paid you plus profit over time. In short, you pay more over a longer period.

If you can absorb shock it is always better not to insure.

By d way, if you keep having accidents they will revise ur premium upwards why is that?

Insurance is a pool of risk whereby the fortunate helps the unfortunate. They only estimate the risk involved and bill u according to that but then, that is only estimation as unforeseen circumstances will always take precedence. No matter how u see it, is good to have insurance coverage and is not a waste of money.

Emmaesty:
But what if ur expected loss is 5k and u lose 10k?

Let me explain:

If your car is insured for 4000,000 (cost of ur car) and the chances of it getting stolen in any given year are 1 in 1,000, then the annual expected loss on your car is 4000. The annual premium for the theft portion of the coverage needs to be more than 4000 for the insurance firm to make profit.

The trick is in them calculating chances of loss accurately, which they do or they would be out of business very quickly. It is the same math used by casinos, bet9ja, nairabet. The odds are computed to be in their favour always.

needful:


Insurance is a pool of risk whereby the fortunate helps the unfortunate. They only estimate the risk involved and bill u according to that but then, that is only estimation as unforeseen circumstances will always take precedence. No matter how u see it, is good to have insurance coverage and is not a waste of money.

I am not saying it is bad, it is very good if your loss will severely affect you. But for someone who has a large margin it is indeed a waste of money.

DaBogu:
I agree with the bolded. I only provided an answer to the questioned asked

Very Well Elder . We're perfectly on the same page

ositadima1:





The insurance company is not father chrismas, they are there to make profit. Do you know what they do ?

They estimate the chances and rate of an accident occurring, they calculate expected loss PA for each customer category and bill you higher.

For example if ur expected loss per month is 5k they will bill you 6k. Effectively they are recovering what ever they paid you plus profit over time. In short, you pay more over a longer period.

If you can absorb shock it is always better not to insure.

By d way, if you keep having accidents they will revise ur premium upwards why is that?

are u talking from experience or guessing ...me am having first hand expirence with sterling , prestige ,Nscia , s.t.i

ositadima1:





The insurance company is not father chrismas, they are there to make profit. Do you know what they do ?

They estimate the chances and rate of an accident occurring, they calculate expected loss PA for each customer category and bill you higher.

For example if ur expected loss per month is 5k they will bill you 6k. Effectively they are recovering what ever they paid you plus profit over time. In short, you pay more over a longer period.

If you can absorb shock it is always better not to insure.

By d way, if you keep having accidents they will revise ur premium upwards why is that?

A tanker fell in festac burning a car lot with about 70 cars and no insurance!

The owner is still in coma on hospital bed accruing more loss.

There are unforeseen circumstances that's why people insure.

ositadima1:


Let me explain:

If your car is insured for 4000,000 (cost of ur car) and the chances of it getting stolen in any given year are 1 in 1,000, then the annual expected loss on your car is 4000. The annual premium for the theft portion of the coverage needs to be more than 4000 for the insurance firm to make profit.

The trick is in them calculating chances of loss accurately, which they do or they would be out of business very quickly. It is the same math used by casinos, bet9ja, nairabet. The odds are computed to be in their favour always.

at a go I can have 5 truck of a.t
K worth 50m on 5 truck worth 50m ....u wan make I die

OgogoroFreak:
A tanker fell in festac burning a car lot with about 70 cars and no insurance!

The owner is still in coma on hospital bed accruing more loss.

There are unforeseen circumstances that's why people insure.

Let's make it balanced Sir.

If a comprehensively-insured truck falls into this kind of scenario burning 70cars. Does the insurance company pay for the loss associated with associated cars in the evident of an accident?


Cc: Ahiboilandgas kindly attend to this question elder.

ahiboilandgas:
at a go I can have 5 truck of a.t
K worth 50m on 5 truck worth 50m ....u wan make I die

Hahaha insure some, leave some out

ahiboilandgas:
are u talking from experience or guessing ...me am having first hand expirence with sterling , prestige ,Nscia , s.t.i

Are you saying that what you paid so far for all your trucks since you started is less than 40 mill ? I mean money spent on insurance.

OgogoroFreak:
A tanker fell in festac burning a car lot with about 70 cars and no insurance!

The owner is still in coma on hospital bed accruing more loss.

There are unforeseen circumstances that's why people insure.

Does insurance cover the other 70 cars ?

healthserve:



Let's make it balanced Sir.

If a comprehensively-insured truck falls into this kind of scenario burning 70cars. Does the insurance company pay for the loss associated with associated cars in the evident of an accident?


Cc: Ahiboilandgas kindly attend to this question elder.

That's a big No!

That would mean when your company is in heavy debt, insurance would clear it.

OgogoroFreak:
That's a big No!

That would mean when your company is in heavy debt, insurance would clear it.

Btw, that's a horrid picture. God forbid it to anybody.

The insurance company only reimburses the value of the insured vehicle and not the associated cars.


As for payment of debts, we all know the insurance companies are not cheer-givers


It seems smooth on paper, but when the monthly and annual insured cost is put on paper, its not small milesage Sir.

BTW, there's no how we'll talk about this subject matter without reflecting the personality/choice and character of our individual composition. Its not a right or wrong situation.

OgogoroFreak:
That's a big No!

That would mean when your company is in heavy debt, insurance would clear it.

it stated in the policey documents , if third party is involved both insurance firm will share the cost,the pay for towing ,injury etc policey varies

ositadima1:


Are you saying that what you paid so far for all your trucks since you started is less than 40 mill ? I mean money spent on insurance.

for nnpc work we pay annual premium of 4.2 m that including fidelity guarantee for an estimated annuall carriage of 800m naira at 5.3 per carrier

ahiboilandgas:
it stated in the policey documents , if third party is involved both insurance firm will share the cost,the pay for towing ,injury etc policey varies

Sorry, but will they pay half the cost for as much as the case of the 70cars? Will they pay that much or is there an ascribed limit

To be clear no oil firm or fmcg firm will deal with you without insurance cover including nnpc it part of the requirement to get contract....a container of Redhill or Milo na 30m

healthserve:


Sorry, but will they pay half the cost for as much as the case of the 70cars? Will they pay that much or is there an ascribed limit

I lost a consignemet of 9.2m Sti paid 7.3 using several grammar to reduce the amount ( under insurance )cos I insured for 9m then price jump to 9.1...the company gave me discounts too and installment payments

healthserve:


Sorry, but will they pay half the cost for as much as the case of the 70cars? Will they pay that much or is there an ascribed limit

my truck worth 6.2 sterling paid 5.3 for accident total damage

ahiboilandgas:
for nnpc work we pay annual premium of 4.2 m that including fidelity guarantee for an estimated annuall carriage of 800m naira at 5.3 per carrier

Sorry, but I don't understand any of this. My simple point is, what you paid in the last 10 years towards insuring your trucks is more than what they paid you as compensation for accidents that occured in that time. Is this correct?

ahiboilandgas:
I lost a consignemet of 9.2m Sti paid 7.3 using several grammar to reduce the amount ( under insurance )cos I insured for 9m then price jump to 9.1...the company gave me discounts too and installment payments

I guess that's why they say we must not erase ancient landmarks trying to play smart and genius and just leave things as they've been programmed before us


In all, you're right, to insure is the right way. Paying 4 Million as against a risk value of 800m is fine wine to me. Its not a waste of money. The risks associated with doing business is transfered to the risk bearer and the peace of mind that you have a cover in stormy times makes you carry out business without being subject to tension.

I'll insure in my dealings from onwards.


Cc FarahAideed SarkinYarki Racoon Daddytime

ahiboilandgas:
my truck worth 6.2 sterling paid 5.3 for accident total damage

Care to shed more light on this to educate me better Sir? Still on a truck damage along with seventy damaged cars and the insurance company to what extent does the insurer cover.

healthserve:




Care to shed more light on this to educate me better Sir? Still on a truck damage along with seventy damaged cars and the insurance company to what extent does the insurer cover.

it better u ask a broker or visit an insurance firm ..i don't have 70 cars expirence

ositadima1:





The insurance company is not father chrismas, they are there to make profit. Do you know what they do ?

They estimate the chances and rate of an accident occurring, they calculate expected loss PA for each customer category and bill you higher.

For example if ur expected loss per month is 5k they will bill you 6k. Effectively they are recovering what ever they paid you plus profit over time. In short, you pay more over a longer period.

If you can absorb shock it is always better not to insure.

By d way, if you keep having accidents they will revise ur premium upwards why is that?

They estimate the chances and rate of an accident occurring, they calculate expected loss PA for each customer category and bill you higher.



I'm not sure what is wrong with this. Seems like a variation of cost plus pricing. The only thing is that the cost seems like a notional one. Kindly clarify


you keep having accidents they will revise ur premium upwards why is that

I reckon because you've been adjudged riskier. You can also reduce your premium if you do not make a claim. I think it's called no-claims discount is you're not as risky as they had initially assessed you.

Does anyone know how to minimise cost of comprehensive insurance apart from the no claims discount and depreciating the vehicle. What factors are considered in the risk pricing.

ositadima1:





The insurance company is not father chrismas, they are there to make profit. Do you know what they do ?

They estimate the chances and rate of an accident occurring, they calculate expected loss PA for each customer category and bill you higher.

For example if ur expected loss per month is 5k they will bill you 6k. Effectively they are recovering what ever they paid you plus profit over time. In short, you pay more over a longer period.

If you can absorb shock it is always better not to insure.

By d way, if you keep having accidents they will revise ur premium upwards why is that?

This is a very bad mentality and its why Nigerians especially traders jump into lagoons when an incident occurs.Many people don't recover due to lack of "financial backings" and this has led to untimely deaths or families being wrecked for life all because of "paying for what I don't need".Insurance companies are not charity organizations but we cant use because the bets are against us or because they make profits and not do the right thing.

Dangote ,the richest man in Africa still insures every bag of cement he produces.Do you really think losing 1 bag of cement takes away anything closely significant to his wealth?? Do you think he can't absorb losing one full trailer of cement??

Petroleum business is a very high risk business that's compounded by bad roads.There was a report here on nairaland that Nigerians lose billions of naira yearly due to bad roads only.You can't expect a person doing business that involves moving tens of millions on our roads to just absorb shock when accidents occur.

Insurance is like a condom. It is better to have it and not need it, than to need it and not have it

Adiwana:


This is a very bad mentality and its why Nigerians especially traders jump into lagoons when an incident occurs.Many people don't recover due to lack of "financial backings" and this has led to untimely deaths or families being wrecked for life all because of "paying for what I don't need".Insurance companies are not charity organizations but we cant use because the bets are against us or because they make profits and not do the right thing.

Dangote ,the richest man in Africa still insures every bag of cement he produces.Do you really think losing 1 bag of cement takes away anything closely significant to his wealth?? Do you think he can't absorb losing one full trailer of cement??

Petroleum business is a very high risk business that's compounded by bad roads.There was a report here on nairaland that Nigerians lose billions of naira yearly due to bad roads only.You can't expect a person doing business that involves moving tens of millions on our roads to just absorb shock when accidents occur.

The problem is not insurance, the question here remains, are you getting your money's worth? We all know how recklesss and unregulated things like insurance can be in in 9ja and majority of people won't dig deep and read the tiny lettered exceptions in their policy. Heck, majority don't even know what is covered and what is not covered. I worked at an insurance company for several years outside of 9ja and can tell you this, THE HOUSE ALWAYS WINS! In 9ja, it is even more precarious. Let's use the case of the tanker for example and 70 cars. They would carryout their investigation, was the driver wearing a seatbelt, was he drunk, did another person caused the accident? Was the road slippery, potholes and so on? Depending on the results of the invesrtigation, the payout could be adjusted anywhere from 20 to 80%. Heck, they could deny your claim completely.

So I would say insurance is worth it as long as you're diligent and understand what exactly is covered and what is not. It is worth it as long as you understand your risk appetite.

Good day house.

I was lucky to see 11.5% for 359 days today at First Bank. I did it and I was duly debited. However, I normally receive my upfront by 4pm but I've not been credited till now.

Fellow investors, has anyone experienced this recently with FBN?