Noor Takaful, an indigenous takaful-insurance operator in Nigeria, on Thursday distributed surplus worth over N12m to its policy holders.
Noor Takaful licensed by the National Insurance Commission (NAICOM) in April 2016 started operation in 2017, providing ethical type of insurance.
The Chairman of the company, Ambassador Shuaibu Ahmed said at the distribution exercise held at its office in Lagos that the payment of the surplus was made possible by the model of insurance operated by Noor Takaful which he called, “a win-win” insurance.
The model operates on the concept of contributions made by the participants (insured) which are pooled into a common fund managed by the Takaful operator.
Some of the products offered include Noor Motor comprehensive takaful, Noor House owners/householders; Noor Fire and Special Perils, Noor Personal Accident Takaful, among others.
Speaking with Daily Trust, the Chairman said Noor Takaful was the first insurance company in Nigeria distributing surplus to its policy holders.
He explained that the company believes that policy holders should be able to enjoy some benefits especially when claims have not been made throughout the year.
He said the surplus payment would continue annually as long as people have not made claims to take all the money in the risk fund.
He said, “This is the first time that policy holders in Insurance industry in Nigeria are getting something back from the premium or contribution they have paid with an insurance company.
“The normal thing is, if it is a car Insurance you have or fire policy, every year, you just pay that premium. When the year finishes, you are coming back next year and say, ‘pay another premium’ and goes on like that for the next 30, 40 or 50 years as long as you are going to continue holding that policy.
“In our own case, we said it is only fair when a policy holder has made payment for a policy and at the end of the year he has not made any claim for a loss of that policy. Then he should get something back”.
A Non-Executive Director, Stephen Muia said the company sets aside the premium paid by policy holders for the purpose of settling claims. “We separate our management expenses and running cost funds from the funds that we use for settlement of claims”, he said.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
