As fire outbreak continues to wreak havoc in houses, shops and market places, insurance companies have paid about N36.1 billion insurance claims to fire victims across the country, in the last three years, findings have shown.

In the last three years, there have been more than 50 major cases and more than 150 minor fire outbreaks in major cities of the federation, with over N300billion worth of properties destroyed in the process.

Although investigation revealed that most of these incidences were not insured, the pockets of those who insured their properties against fire were adequately compensated by the respective insurers.

While the majority of the claimants are corporate organisations who had insured their office premises and buildings against fire out breaks, investigation revealed that few individuals who had insured their houses, offices or shops against fire disasters, got their claims as well.

With incessant increase in fire incidents, especially, in factories and market places, there has been continuous surge in the volume of fire claims in the last five years.

Data sourced from Insurers’ Digest, a publication of the Nigerian Insurers Association (NIA), shows that insurance companies paid N5.7 billion fire claims to 260 companies and individuals in their 2016 financial year, while they paid N9.8 billion claims to 480 companies in 2017 financial year.

In 2018 financial year, insurance industry paid N18.9 billion as Fire claims to policyholders who suffered insured risks on the assets insured.

A breakdown of the claims payment shows that Lagos State has the highest record of fire incidents with a sum of N16.8 billion, amounting to about 85 per cent of the Total claims payout, paid to fire victims.

This was closely followed by Rivers State with a sum of N664 Million claims paid to fire victims while Federal Capital Territory (FCT), Abuja, came third with N355 Million claims paid to fire victims in that financial year.

Except Borno, Ebonyi, Jigawa, Kebbi, Niger, Taraba and Yobe States that were mostly ravaged by insurgency and thus, insurers were afraid to insure properties of inhabitants in those crisis prone areas, the remaining 30 states recorded insured fire disasters and victims were adequately compensated in the process.

With this trend, the insurance industry seems to have improved over time in the area of paying genuine claims as more people are now aware on the need to make claims whenever an Insured risk occurs.

This, according to experts, is a signal to traders, who are skeptical about whether their claims would be paid or not, that underwriting firms will always honour their claims obligation.