Quite often I am asked by my audience after a presentation, why doesn’t my insurer pay me a part of the premium when there has been no loss. As much as I’d like to say your insurer doesn’t owe you a penny, I am also guided that it’s not everyone who appreciates insurance and understands its benefits.
So one day, a colleague was asked the same question and I was struck by the response. He asked the questioner, do you go back to your watchman to demand a part of the money you paid him to watch over the house whiles you slept? I believe we all know the answer to be NO!
If we all agree to the fact that the wages paid to the watchman are not refundable after an incident-free night then why do we demand a refund be it part from our insurers? There are several similarities between the insurer and the watchman, but one strikes a chord:
They both give you peace of mind whilst you focus on your business.
Insurance gives you peace of mind to focus on your business, and even when there is a loss you know you are covered. Your insurance premium is put into a pool that is used to pay for the losses of others who faced similar risks and insured with you.
The next time you think of a refund from your insurer because there was no loss, think again that you purchased peace of mind, and it is not refundable just like the wages for the watchman.
However, there may be other options where you get cashback for no loss record for a certain number of years. But remember, Terms and Conditions apply.
Let’s get insured today!
Isaac Kwakwa – Sarpong
FCIIChartered Insurance Practitioner
+233 275 197 275
