Insurance: Who qualifies to be your Next-Of-Kin

Members of the insuring Public have been advised to disclose their insurance contract with any insurance company to their next of kin.

The advice was given by Mr. Olusoji Majekodunmi, an ex President of Institute of Chartered Secretaries and Adminstrators of Nigeria.

Majekodunmi, speaking against the backdrop of incessant death of businesses in Nigeria as a result of demise of their founders said “even in business, a succession plan is required and should be carried out at the right time, adding that insurance policyholders should also inform their family members about any existing insurance.

“If you have any insurance policy with any insurance company, you should let your next-of-kin or the beneficiaries know about it, to enable easy access to claims in the eventuality that you are no longer around”, he advised.

According to him, such knowledge will always serve as solutions to solving major problems often faced when claims are being pursued or by family businesses towards succession and sustainability.

He said that most family businesses have not been able to outlive their founders due to their failure to make deliberate and systematic plan before their death.
According to him, most businesses have failed after the original founder due to lack of deliberate and systematic plan in the transfer of the ownership of the business from one family to the next.”

He also identified lack of adequate grooming of successor(s) in the original founder’s business line, through proper vocational or professional education as a challenge.

He noted that succession issues are not limited to the Nigeria’s family businesses alone, but is of universal appeal adding that family businesses, which may either be sole trading or vocational businesses including professional practices which are of relatively recent origin constitutes an important group of enterprises within the small to medium scale sector.

He said: “When most business founders become successful in the businesses, out of the fear of their own backgrounds, they often educate their children in exotic disciplines unrelated to their line of business, thereby lending credence to the “qualified but not suitable syndrome, a veritable panacea for succession failure.

‘‘This kind of education fails to inculcate into the would-be successor the dream, passion, discipline and sometimes the integrity of the founder which are his/her personal attributes, and which are non-transferable.”

He said, in essence, people or entrepreneurs should establish a clear and meaningful strategic development process for easy succession with a view to sustaining their businesses  accordingly.

Furthermore, he said, entrepreneurs must act proactively by crafting a succession plan early enough.

“Proper values must also be instilled in their successor. I believe that this knowledge is essential to project the ethos of sustainability of businesses with good corporate governance structure entrenched in any business,” he stressed.

Source: Thisday