The management of Leadway Assurance Company Limited has denied reports that the insurance company refused to pay claim to one of its customers, saying the affected policyholder was actually trying to commit insurance fraud.
There was a report recently alleging a default on the part of Leadway to meet the obligations on a purported policy under which one Nike Oladunni Omorodion was claiming for loss suffered following fire damage to a property at 8, Aduke Close, Maryland, Lagos.
Reacting to the report, the insurance firm, however, stated that policyholder was only attempting to blackmail the organisation through the press to obtain claim by fraud.
In a statement issued by the company in Lagos and made available to Daily Independent, Leadway said “It is sad that the press is being used to foster blackmail against an insurer of repute in order to fraudulently secure a payout on a policy that was issued in respect of another property located at 5, Olaperi Street, Maryland, Lagos issued to an Oladunni Olunike Morenike. Insurers are custodians of pools of funds on behalf of various insureds and owe a trust/fiduciary relationship to ensure that they do not bankrupt the pool by paying non-genuine or fraudulent claims. We expect that the Press will make every effort to educate the public on insurance practices and values, not sensationalise a purported fraud to compel payment through blackmail and defamation.”
The statement further said “the value of insurance is key in safeguarding individual wealth and it is our responsibility to ensure that we protect our insured and pay their claims when they have suffered losses to property insured with us. If an insured omits to insure a particular property, it cannot then decide to transfer the insurance of one to another by itself after a loss to the uninsured property.”
The insurer further urged journalists to ensure that they always investigate and verify the facts freely availed by both parties before putting forward their publication, stressing that it would not be blackmailed “into paying an uncovered loss of an uninsured property by filing an unjustified claim.”