BY OLUSEYI IFATUROTI—Apart from resources being made available for development in other sectors of the economy. Removal of fuel subsidy brings about an immediate spike in cost of goods and services.
In the removal of fuel subsidy the government has a responsibility to introduce compensatory measures via palliatives for the public especially the poor and vulnerable.
The social safety nets need to be greatly enhanced. I strongly believe the President Bola Ahmed Tinubu is working on this.
In all of these to our insuring public this is a time to ensure your assets are covered by mechanism of insurance and adequately too.
This is because the replacement values will be much higher than the value at the time of loss.
Just as dealers held on to fuel and were not selling whilst waiting to know the value of reorder to ensure their ability to continue in business of dealing in PMS at the unsubsidized rate , so do all our insuring public need to value their assets and ensure their insurance policies are in line with current realities paid up to date and kept in force.
The removal of fuel subsidy has actually increased the value of assets generally. If the assets are not valued adequately for Insurance and a claim occurs the current insured value which will be the basis for settlement of claims shall not be able to match the current cost of replacement .
There by defeating the essence of insurance which is to put the insured back in the position he was before the loss occurred.
In summary, removal of subsidy leads to increase in the value of your insurable and insured assets and the insuring public is hereby advised to be prudent and protect the value of their assets.
Oluseyi Ifaturoti, a Past President of Chartered Insurance Institute of Nigeria( CIIN), an Associate of Nigerian Council of Registered Insurance Brokers, ( NCRIB) and Managing Director of Transparency Scape Insurance Company
