Nib Insurance Company

Establishment

Nib Insurance Company (S.C.) is a Private Insurance Company established in May 2, 2002 by 818 Shareholding members.  Nib Insurance is also a sister company of Nib International Bank (S.C.), one of the leading Bank in Ethiopia.  By expanding its services and increasing its efficiency, Nib Insurance, in its early age, has emerged as a strong, competitive private insurance Company and is developing a sound portfolio which is demonstrated by a prudent underwriting.  The result of its prudent risk management and pre-risk underwriting advice has so far contributed to a loss ratio much lower than the industry average.

Nib Insurance is a broad-based private insurance Company in the country with fully paid up share capital of Birr 30 m. The Company's authorized capital is Birr 50 m.  The Company's paid up and authorized Capital are expected to be raised to Birr 50 m. & 100 m.  Due to the nature of its shareholding base, the Company has strong business support from a large segment of the public and its shareholders.

Company Vision

“To be a proactive leader in the provision of high quality and diversified insurance services that exceeds customer expectation by assuring maximum security to clients.”

Mission Statement

“To make business in the country more productive by meeting the growing insurance service needs and effectively mobilizing public & private funds for sustainable growth and profitability.”

Products of Nib Insurance Company

MOTOR INSURANCE

1.1 Motor Comprehensive Insurance Policy Covers:-

1. Accidental collision or overturning or collision or overturning consequent upon mechanical breakdown or wear and tear but excluding damage to tyres unless such insured motor vehicle is damaged at the same time;

2. Fire, external explosion, self-ignition, lightning, theft or attempted theft;

3. Malicious act;

4. Transit Risk

5. Impact damage caused by falling objects

1.2 Third Party, Fire and Theft

Covers:-

Legal liability to third parties for bodily injury or death and damage to properties.

Damage to own motor vehicle directly caused by fire, self-ignition, lightning, explosion, theft or attempted theft.

1.3 Third Party Only

Covers legal liability of the insured to third parties for bodily injury or death and damage to properties.

FIRE INSURANCE POLICY

Covers:-

Loss of or damage to the insured property by fire, lightning and explosion of boiler and gas used for domestic purpose.

On payment of additional premium the policy can be extended to include the following:

Earthquake, storm, tempest, flood, aircraft damage, impact damage, spontaneous combustion, bursting or overflowing of water apparatus, bush fire, subsidence and/or collapse, strike, riot, malicious damage, explosion.

BURGLARY AND HOUSE BREAKING INSURANCE POLICY

Covers:-

Loss by theft following upon actual forcible and violent breaking into or out of a building, or consequent upon any attempted threat, or if there shall arise any damage to the property insured or to the premises falling to be borne by the Insured and which shall be due to any such theft or attempted threat.

PLATE GLASS INSURANCE

It covers “glass” in the insured’s premises shall be destroyed or broken by any accident or misfortune of a fortuitous character except:

• Any breakage of horizontal, ornamental , silvered and bent glass
• Breakage or damage arising out of or in connection with the fire explosion earthquake, civil war
• Creaked or imperfect glass
• Breakage caused through fire or gas heat or by will full act
• Consequential loss
• Arising from ionizing radiations or contaminator by radio activity

MARINE CARGO/GOODS IN TRANSIT

Marine cargo insurance covers loss or damage to the subject matter insured on "All risks" basis from port of loading to final warehouse/destination.

Inland transit insurance covers the insured interest against theft and/or fire and/or damage directly caused by overturning or collision or derailment of the carrying conveyance or collapse of bridges and embankments.

CONTRACTOR’S “ALL RISKS” (CAR) INSURANCE

It is an all risk policy. It offers comprehensive and adequate protection against loss or damage in respect of the contract works, construction plant and equipment and/or construction machinery, as well as against third-party claims in respect of property damage or bodily injury arising in connection with the execution of a building/civil project.

Main Causes of losses identifiable under CAR policy are

• Fire , Lighting and explosion
• Natural Perils
• Theft , Burglary
• Lack of Skill and Negligence

ERECTION ALL RISK (EAR) INSURANCE

This branch of Engineering insurance offers comprehensive and adequate protection against all the risks involved in the erection of machinery, plant and steel structures of any kind, as well as third-party claims in respect of property damage or bodily injury arising in connection with the execution of an erection project.

EAR insurance provides a very wide cover. Almost any sudden and unforeseen loss or damage occurring to the property insured on the erection site during the period of insurance will be indemnified.

CONTRACTOR’S PLANT AND MACHINERY (CPM) INSURANCE

This is an insurance of contractor’s plant and machinery on an annual basis. It covers any loss or damage from any cause whatsoever occurring at work, at rest or during maintenance operations and is not limited to a specific construction site.

Main Causes of losses identifiable under CPM policy are

• Fire , Lighting and explosion
• Natural Perils
• Theft , Burglary
• Lack of Skill and Negligence

MACHINERY BREAKDOWN INSURANCE

It was developed to grant industry effective insurance cover for plant, machinery and mechanical equipment at work, at rest or during maintenance operations.

By its very nature, Machinery insurance is “All Risk” insurance for machinery supplementing the coverage afforded by Fire insurance. Thus it covers unforeseen and sudden physical loss of or damage to the insured items necessitating their repair or replacement.

All types of machinery, plant, mechanical equipment and apparatus may be covered under Machinery Insurance.

If possible, all the machines of plant or workshop or of a separate plant section should be included in the insurance in order to ensure that the risk is adequately balanced.

Only those items having a short service life compared to the entire plant are normally excluded from machinery insurance, i.e. mainly:

• All types of interchangeable tools
• Sieves, engraved cylinders, stamps, dies, ropes, chains, belts
• Parts made of glass, ceramic or wood, rubber tires
• Operating media of any kind such as fuel, gas , refrigerants, catalysts, liquids, lubricants (oil in transformers and circuit breaks is, however, include since it is not only a coolant but also serves as an insulation agent)

Machinery insurance cover is limited to the insured’s premises and does not include Third Party Liability and perils that could be catered in other policies unless superficially included by endorsements.

Loss or damage covered under Machinery insurance is mainly due to the following causes:

• Faulty design
• Faults at work or in erection
• Defects in casting and material
• Faulty operation, lack of skill, negligence, malicious acts
• Tearing apart on account of centrifugal force
• Physical explosion, flue gas explosion in boilers
• Electrical causes like short circuit
• Shortage of water in boilers
• AOG

PUBLIC LIABILITY INSURANCE

Provides cover in respect of legal liability to third parties for bodily injury and loss of or damage to property. The policy gives cover for legal liability for damages for accidents causing bodily injury to or death, disease or illness sustained by any person not under a contract of employment to the insured, or accidents causing loss of or damage to material property belonging to another and caused during the period of insurance, arising out of and in connection with the business.

PRODUCTS LIABILITY INSURANCE

Provides cover in respect of legal liability to third parties for bodily injury to a person or loss of or damage to property caused by products or goods supplied by the insured.

Note that it is not just the manufacturer who can have a product liability. Retailers and any firm involved in the chain of distribution can also find themselves bearing responsibility for the goods supplied to customer.