‘Why CHI extended rights offer to May’

The Consolidated Hallmark Insurance Plc (CHI) rights offer was extended from April 1 to May 1, 2020 because of the coronavirus (COVID-19) outbreak, the Group Managing Director/Chief Executive Officer of the firm, Eddie Efekoha, has said.

Efekoha, in a statement, said the extension also became necessary because investors would usually wait till the last week of the offer before taking offers. He noted that having an insurance policy is the surest way to peace, stressing that as the world continues to grapple with the adverse effects of COVID-19, the need to leverage insurance in mitigating risks is vital. He praised regulators for their support.

Efekoha, also the President, Chartered Insurance Institute of Nigeria (CIIN), cited instances where insurance has come through to rescue notable world events and businesses.

Although he acknowledged that there is no cover for pandemics, such as Covid-19, in the country, and that there are very few cases abroad, the demand for the cover is, however, expected to rise in future as people have been aware of the benefits of insurance.

He said: “In the days, months and years ahead, we expect insurance cover for pandemics and other infectious outbreaks to be in high demand and the insurance industry would be expected to come up with an appropriate response and when it is done, the insuring public would be made aware.

“The insurance industry, may not pay claims for business interruption flowing directly from the outbreak of Coronavirus due to the absence of the cover but the sector remains poised to respond appropriately when business interruption occurs due to specified risks in policies like fire outbreak, explosion damage etc.’’

He however noted that some burglars had taken advantage of the coronavirus lockdown by burgling shops of business owners, who are observing the lockdown directive of the Federal Government.

He said where the business owners have insurance, they should be rest assured of compensation.