Business

Wigwe: Which Insurance Policy Can Remedy These Massive Losses?

Published

11 months ago

February 27, 2024

By Cami Ezenwa

Is insurance policy of any kind able to remedy these massive losses? This is one of the big questions that have trailed the sudden death of Chief Executive Officer (CEO) of Access Holdings.

The question has become very germane on account of several factors, viewed from general insurance perspectives.

His is one aviation disaster, but it did throw up a number of other issues: loss of lives, grievous damage to aircraft, loss of property and endangering of individual or corporate reputation.

In fact, some have inferred that even the corporate profile of Access Holdings, the organisation where Wigwe held sway until death, had been jolted somewhat. Was it complicit in anyway whatsoever, not to mention issues like investor-confidence, associated shock on employees, friends, family and associates.

All these put together, make that question germane: Is insurance policy of any kind able to totally remedy these losses

On individual lives lost for example Investopedia responds that “Some life insurance policies can offer both death and living benefits. Whereas a living benefit rider could tap into a policy’s death benefit while still alive, other situations like terminal illness could qualify the insured to some funds to pay for medical care.

Ashley Kilroy, in Forbes Insurance, also asserts what may just be obvious to stakeholders, that life insurance also works in providing a financial safety net for loved ones should the insured pass away.

Yet, financial protection and peace of mind are at the forefront of life insurance, he says, adding;

“Life insurance typically covers all causes of death—generally excluding suicide within the first two years of the policy. That means all these causes of death, and more, are covered

What does aviation accident insurance for example, cover?

Reacting directly to the above question, Julia Kagan in Investopedia declares that Aviation Accident Insurance provides coverage for injuries resulting from an aircraft accident, including injuries sustained by pilots as well as travelers, a type of coverage typically styled Accidental Death and Dismemberment (AD&D).

Roads deserted in Isiokpo community once the news of the news of the tragedy broke

As against the first aviation insurance underwritten by Lloyds of London in 1914 which covered only passengers, currently, the potential for accidental death or injury is a risk that can be insured against, many sources have averred

However, one challenge that has trailed this is:

“Because the demand for aviation accident insurance is less than the demand for many other types of insurance, such as general liability or life insurance, the number of insurance companies offering this type of policy is relatively small”. According to Munich Re; aviation insurance, tries to make a distinction thus:

Hull insurance – for the aircraft itself

Passenger legal liability – if passengers are harmed

Third party liability – which covers damage caused by the operation of an aircraft, for example if it crashes on the ground.

According to Liberty Mutual, “If you’re at fault for an accident. It can also help pay for legal fees if you’re sued for damages.

The above backgrounds are helpful given the enormity of the losses in that singular accident. In fact, what is insurance policy’s attitude to aviation accidents triggered by bad weather, and that also claimed the lives of third parties.

The United States of America National Transportation Safety Board in its reaction, said, law enforcement and witnesses observed the engulfed in flames before it crashed. According to it, witnesses also reported the weather conditions in the area were “not good” and raining with a snow mix.

Initial investigation report by the NTSB, witnesses stated that the weather conditions on the day of the helicopter crash were a combination of rain and snow.

It also referred to the helicopter’s built-in Automatic Dependent Surveillance-Broadcast (ADS-B) technology, which tracks aircraft positions, recording a surge in ground speed before the crash.

“The accident flight departed Palm Springs International Airport (PSP) at 2045 under visual flight rules and flew a northwesterly heading for about 2 miles before following US Highway 111 to Interstate (I) 10 at altitudes varying between 2,500 – 3,000 ft mean sea level (msl),” the report read in part.

In addition, Wigwe was not in the Chopper alone, but had his wife there, son and a former Group Chairman of Nigerian Exchange Group Plc, Abimbola Ogunbanjo, all of who were confirmed dead.

This was how Access Holdings PLC officially reported the disaster:

“Dr. Wigwe died alongside his wife and son on Friday, February 9, 2024 in a helicopter accident in the United States of America,” Access Holdings said.

“The entire Access Family mourns the loss of Herbert, Doreen and Chizi. We extend our deep and sincere sympathies to his family and loved ones. Dr. Wigwe was a key driving force and a larger-than-life personality who brought his remarkable passion, energy, and experience to the transformation of the Access franchise since joining the Bank in 2002.”

In addition, Abubakar Jimoh, chairman of Access Holdings, said Wigwe’s death was a major loss, adding that the Access family owed him a debt of gratitude.

So, which type of insurance policy can remedy these massive losses?