Leadway Assurance refutes claims on uninsured property

Management of Leadway Assurance Company Limited has described as fraudulent and ill advised an attempt by one of its clients to make claims on a property that was not insured by the insurance company.

Leadway is therefore faulting a report in one of the national dailies alleging a default on the part of Leadway Assurance to meet the obligations on a purported policy under which a Nike Oladunni Omorodion is claiming for loss suffered following fire damage to a property at 8, Aduke Close, Maryland, Lagos.

In a statement by the company, the report was being used to foster blackmail against an insurer of repute in order to fraudulently secure a payout on a policy that was issued in respect of another property located at 5, Olaperi Street, Maryland, Lagos, issued to an Oladunni Olunike Morenike. “Insurers are custodians of pools of funds on behalf of various insureds and owe a trust/fiduciary relationship to ensure that they do not bankrupt the pool by paying non-genuine or fraudulent claims,” according to the statement.

The statement further said that “the value of insurance is key in safeguarding individual wealth and it is our responsibility to ensure that we protect our insured and pay their claims when they have suffered losses to property insured with us.”

If an insured omits to insure a particular property, it cannot then decide to transfer the insurance of one to another by itself after a loss to the uninsured property.

According to the insurance company, Oladunni Olunike Morenike is the insured, not Nike Oladunni Omorodion and the company is aware she suffered fire damage to a property at 8, Aduke Close, Maryland, Lagos, which is not the insured property.

“The property insured with us is another property at 5, Olaperi Street, Shonibare Estate, Maryland, Lagos, and has not been affected by fire and is the subject matter of insurance.

Leadway says the relationship with the insured was effected through Standard Chartered Bank as one of its sales outlets and the insurance application form (which forms the basis of insurance) did indicate the address as 5, Olaperi Street, Shonibare Estate, Lagos and not 8, Aduke Close, Maryland, Lagos.

“While we appreciate her pain as a customer who has suffered a loss and are indeed still taking a further look into the claim to see how we might help her despite her uninsured loss, our attempts are now being frustrated by this blackmail, which is illegal and tantamount to fraud.

“Her misrepresentation of the facts and an unwarranted attempt to use the media to arm-twist us into responding to a fraudulent claim is simply sad and ill advised, Leadway stated.

“Leadway Assurance is an insurance company with close to 45 years of service in the insurance industry in Nigeria. We understand that the value of our promise to our customers is in the claims that we pay. Industry statistics attest to the fact that we have the highest claims paid value and loss ratio that is far above industry average. For the audited financial year ended 2013 alone, we paid over N10.9 billion in claims.

“According to verifiable industry statistics (the Nigeria Insurance Digest of the Nigerian Insurers Association), over N6.1 billion in claims was paid in 2012, for its general business alone (the highest in the industry, with the next highest payer paying only N2.8bn). This indeed is why we are in business. We will however not be coerced or maligned into paying an unjustified/fraudulent claim and will insist on our legal rights against any defamation of reputation,” the company stated.

 

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