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National Insurance Company scrambles over fake $1.2M policy

…Delibrate Market Miscalculation

The National Insurance Company known by abbreviation as “NIC” is living and surviving on its shadow and former glory. It was established during the period when monopoly was at the centre stage of economic activities and relied on Government Assets to make huge bucks. With the advent of market liberalization and the death of monopoly, the National Insurance Company is living on assumption and believes in destiny.

Contemporary market situations makes no provision for destiny or the reliance of Government Assets as the primary insurer, but how effective challenges can be resolved to promote financial growth, independence and market expansion.

The National Insurance Company has been a disgrace to the Country as the first Insurance Company established with a marketing strategy that is as old as Methuselah whose knowledge of the intricacies of risk management and insurance products coverages merely sold as commodities. The assumption that the monopoly ideology that had been long enjoyed has left the institution and its marketing team with a complete lack of adequate understanding of the disadvantages of monopoly and the benefits of contemporary insurance world, where competition has been identified as the principal driver of success that can strengthen the financial backbone of any business

The armchair market strategy and beliefs that the National Insurance Company is a Government established entity; therefore all Assets and Properties owned by the Central Government must be insured by the Company has left the Company in a few weeks back grappling for a fake $1.2Million Insurance Policy.

With the deplorable looks of the structure that is gradually falling apart and its armchair marketing officials, public confidence has since eroded; coupled with the refusal to honour claims and benefits have exposed the Company as one of Government’s entities not credible to do business. This has seen customers shying away from the Company, but the exodus has not taught officials of the Company with any lesson to revisit their strategies and transform the Company into a business entity that is credible, productive and can compete with others, instead the old aged unacceptable doctrine continued to be preached. A doctrine that is not earning the Company any dividend or moving its sales portfolio forward, but shifting and blaming its competitors for its progressive retrogression in the Insurance Industry in the Country.

Investigation recently conducted by this medium relating to the 100 buses that recently arrived, which NIC was of the opinion that as the Government Insurer must be giving part of the cake or all has proven contrary. The amount assumed that the buses were insured for has also been proven wrong and miscalculated. Whether NIC deliberately miscalculated the amount to present a foggy picture or raise a false alarm to the public in a bid to attract public sympathy has boomeranged as the figure displayed by authorities of the Sierra Leone Road Transport Co, operation and why both Aureol and Ritcorp Insurance Companies were chosen has left NIC now walloping and groping in the dark in search of the truth.

The two Insurance Companies were used because of the capacity they have not only to honour claims and pay benefits, but because they are credible and reliable in the business they do. Additionally, they have convincing business records that showcased their performances over the years and not because of political connections or any reason associated with the search for favour. According to a senior official at SLRTC, they are not going to put their money where they would have problems in future, despite the fact that NIC is a Government entity doesn’t mean as a corporation they should jeopardize the future “We are in business and what we are managing belongs to the public, which should mean whatever business relationships we entered into with any other entity the public interest comes first and not a relationship that will be a problem to us in future” He said.

It is no secret that payments of genuine claims and benefits to premium holders have been a major concern to many people doing business with NIC.

The 100 buses were divided into two groups and 50 of them insured by Ritcorp and the other 50 by Aureol for a fee of $1,000 equivalent to Le5,000 each. Ritcorp received Le270Million including other administrative fees paid and Aureol the same amount and not $1.2Million as NIC or its official would want the public to believe. What could be described as a spectacular failure of NIC, the Country’s oldest Insurance Company to market itself well in the midst of competition is a case of monumental marketing failure that is seeing the Company going down hill. Perhaps it would require some consultations with the Sierra Leone Insurance Commission (SLICOM) for lectures and training of the way forward in the industry that has been diverse and challenging.

Posted by on 7:28 am. Filed under Breaking News, NEWS, OTHER NEWS. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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