The Insurance Association of the Gambia, in furtherance of its campaign which seeks to increase awareness and enhance the public image of the insurance industry, on Friday June 24th, organized a lecture for the National Students Insurance Club (NaSIC).
Held at St. Augustine’s Senior Secondary School in Banjul, the lecture was organized to introduce insurance to the students, the basic principles of insurance, the concepts of insurance and why the need for insurance.
NaSIC was established in 2009 by a group of students from St. Augustine’s and St. Joseph’s Senior Secondary Schools and it was officially launched by the IAG in April this year. The club was formed to inculcate into students, the positive role that insurance plays in the development of a country, as well as to encourage students to take up insurance as a career.
Henry Jawo, secretary general of the IAG, said: “We need to educate them (the students) about what insurance is all about. The lecture is beginning of a series of programme that we will embarking upon with NaSIC and other insurance clubs, and we hope with the intervention of West Africa Insurance Institute (WAII), as they are one in charge of training, we will be able to get the students series of lectures so that they understand and appreciate insurance.
Insurance is a defensive measure used against future conditional losses to hedge the possible risks of the future. It is a legal contract that protects a person from contingent risk of losses through financial means and provides a means for individuals and societies to handle some of the risks faced in daily life.
Winston Kuti-George, medical and travel manager, Great Alliance Insurance Company, in his presentation, told the students that insurance involves two parties; ‘the insurer’ and ‘the insured’. The ‘insurer’ is the insurance company and the ‘insured’ is the policyholder. “The policyholder pays a prescribed amount to the insurer called premium, the insurer in turn agrees to bear the financial loss and expenses of the policyholder,” Mr Kuti-George said.
He explained that the Gambia insurance industry as at 2010 consist of 11 registered insurance companies out of which ten are engaged in only non-life insurance business and one doing wholly life. “Usually policies under non-life are short term or one year indemnity contracts,” he said, adding “Funds or premiums are normally invested in short term, not more than one year, investment ventures like treasury bills.”
He explained that insurance like banking, promotes savings to individuals, it promotes investment because insurance companies can easily invest in agriculture, commerce, etc. And it also protects a person against the dangers of life and property.