Preliminary assessment of
the damage arising from attacks on financial institutions and their
assets by hoodlums, who hijacked the #EndSARS protests, showed that more
than 67 bank branches were destroyed and many automated teller machines
(ATMs) damaged.
However,
insurers have dispatched their officials to the various sites, banks
inclusive, to ascertain the extent of damage done to assets under their
cover that were destroyed by hoodlums across the country.
The
number of banks’ branches affected could be higher than the stated
figure as some of the financial institutions said they were yet to
ascertain the exact number of their branches and ATMs that were
affected.
While the hoodlums torched some bank branches, they broke into others in a bid to loot their vaults.
A
breakdown of the number of branches affected across the country showed
that 10 branches of FirstBank Nigeria Limited were damaged; Union Bank
of Nigeria- 10; Guaranty Trust Bank – nine; Access Bank Plc – eight;
Fidelity Bank – seven; and six branches of First City Monument
Bank(FCMB) were destroyed.
Also,
three branches each of Wema Bank and Sterling Bank were damaged; two of
the branches each belong to Stanbic IBTC and Unity Bank respectively
while Heritage Bank, Ecobank and Polaris Bank lost a branch each
respectively.
Nevertheless, the banks would be looking up to the insurance companies to underwrite the losses.
The insurance cover for banks includes vault, cash-in-transit, ATMs, fire and special peril.
Also,
insurers have dispatched their officials to the various sites, banks
inclusive, to ascertain the extent of damage done to assets under their
cover that were destroyed by hoodlums.
This
is to enable the underwriters to determine the amount of claims as well
as the modalities for payment to governments, businesses and
individuals that were affected by the violent protests.
Insurance
experts said on Sunday that when risks due to civil unrest occur as
seen last week, insurance technical persons and adjusters would be sent
to see whether the actual cause of the damage was covered by any policy
statement or should be accommodated under extensions.
Speaking
in a telephone interview, the Managing Director, Corporate Loss
Adjusters Limited, Mr. Levi Omoboyowa, said the situation would be
critically examined to determine which of them was genuine and payable.
He
said adjusters from different parts of the country had been dispatched
to the scenes of the destroyed assets, stressing that until they collate
the result of their findings and their judgment filed to the respective
companies, insurers cannot know how much claims they have to settle.
He
said he and his colleagues have started working to come out with the
value of claims to be paid by each insured who had undertaken a policy
on the damaged businesses.
Also,
insurance underwriter and Managing Director of Universal Insurance Plc,
Mr. Ben Ujoatuonu, said insurers are already estimating the situation
in order to compensate those covered by their policies.
He,
however, added that even though insurers are in business to pay claims,
the risk in question must be covered by the policy purchased.
He
said the risk from the EndSARS protest can only be paid for if the
owner of the property or other assets covered bought fire extension.
According to him, “Otherwise there is no insurance cover for strikes and civil commotion risks as they are not basic cover.”
He
said the situation the country passed through last week was an
eye-opener to Nigerians on the need to buy insurance products for risk
management and protection, saying no one knows when such an incident
would occur.
The
Managing Director of Bof Africa Insurance Brokers, Mr. Olumide Fatogun,
said the unfortunate development would prove to Nigerians that insurance
and claims payment are real.
ThisDay
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