An Appraisal Of The Nigerian insurance companies Approach To Claim Settlement

An Appraisal Of The Nigerian Insurance Companies Approach To Claim Settlement

Abstract

The end of this exploration study is to estimate the Nigeria insurance companies approach to claim agreement. A study of Africa Alliance Insurance company in East Central region. The objects of this exploration work include the following To find out if ignorance or ignorance of the assuring public affect the capability of the insurers to settle, claim to find out if under agreement is common. The affiliated literature review of the work include; Overview and literal development of insurance. For a successful completion of this exploration work, the experimenter made use of both primary and secondary styles of data collection for information gathering. Primary data were collected through; questionnaire administration oral interview and particular observation. Secondary data were collected through journal and journals, handbooks and lecture and scrapbooks and internet. The data collected were presented in table and anatomized with simple chance while the thesis, stated earthenware tested with ki- forecourt. The summary of discoveries made by the experimenter includes the following it was discover that ignorance or ignorance of the assuring public has affected the capability of the insurer to settle claim. In conclusion, the ignorance is a major problem of the assuring public and this has affect their capability to supply correct information when demanded. The experimenter recommends that Nigeria insurers association in confluence with charted insurance institute of Nigeria set up a believable insurance information service that will enlighten the public on the need and purpose of insurance to reduce low position of mindfulness and frauds.

TABLE OF CONTENTS

Title runner——— i

blessing runner——– ii

fidelity——– iii

Acknowledgement——- iv

Abstract——— vi

Table of Contents——- viii

CHAPTER ONE preface

Background of the Study—– 1

Statement of the Problem—– 5

objects of the Study—– 6

exploration Question—— 7

exploration thesis—— 7

Significance of the study—– 8

compass and Limitations of the Study— 9

description of Terms—— 10

References——- 12

CHAPTER TWO REVIEW OF RELATED LITERATURE

An overview——- 13

literal Development of Insurance– 15

literal Development of Insurance in Nigeria- 16

Benefit of Insurance—— 37

Classes of insurance—— 42

Claims agreements—— 44

General claims procedure—– 45

Conditions under which Insurer may Refuse

to Settle Claims—— 50

Exception Clauses Relieving the Insurer from

Liability when a Claim is Failed. — 52

Causes of disagreement in Claim agreement– 56

References——- 60

CHAPTER THREE exploration METHODOLOGY

An overview——- 61

Area of the Study—— 61

Population of the study—– 62

Sources of data system of data collection- 62

ways used in Determining the Sample Size 64

Data Analysis fashion—– 65

Validity of the Instrument used—- 66

Validity and trustability of the Instrument– 67

CHAPTER FOUR

donation and Analysis of Data— 68

Data analysis——- 68

Analysis of exploration Questions— 70

Analysis of Data from the Staff of Both

Insurance and interposers—- 77

Test of thesis—— 82

CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

Summary of Findings—– 85

Conclusions——- 87

Recommendation—— 88

Bibliography——- 85

excursus——– 93

Questionnaire——- 94

Chapter One

Preface

Background Of The Study

Insurance is the indifferent transfer of the threat of loss, from one reality to another in exchange for payment. It’s a form of threat operation primarily used to hedge against the threat of a contingent, uncertain loss. It involves pooling of finances from numerous insured realities( known as exposures) to pay for the losses that some may dodge. Insurance as a ultramodern conception for working threat related problems depends on co-operation of a large number of people for it’s success.

Since threat is an necessary event in every business adventure, there will be need to understand events in like, there will be also need to understand what threat entails for. illustration walking in the road imposes a peril of being knock down by a vehicle. Since threat is ever present it can not be excluded but can be averted. Indeed men enjoy habits, occupation, relationship with others, the society and his political conditioning are sources of peril.

The taste of good insurance sale lies in the manner in which a claim is handled. This is why it’s appertained to as the acid test for insurance( Ogwo, Enwereuzor, Nwite, Ibeabuchi and Eche, 2000) one of the top functions of an insurance company is the agreement of claims. It’s infact the fear that a claim might do that induces individual and profitable institutions to take out insurance programs.

thus, the payment of claims can be said to be the major function of an insurance company. The acid test of viability of any insurance company is prompt agreement of claim and it’s also a veritable cheapest means of announcement.

Notwithstanding, the positive places which the insurance assiduity plays in the social and profitable development of our country, the assiduity still doesn’t enjoy a good public image. The public sees the assiduity incorrectly as dupes( Eche, Enwereuzor, Ibeabuchi, Nwite and Ogwo 1999(. They believe that the insurers are good at exacting plutocrat from them in form of decoration but they’re reticent in settling claims when the time comes.

The most important reasons for this print is that there’s a low position of insurance mindfulness in our society. The public aren’t duly educated on the compass, function and limitations of insurance deals especially in the issue that may beget controversies that arises in an insurance contract has to do with agreement of claims. So an important factor that distinguished a good insurance company is it’s claim agreement services. It doesn’t mean an insurer should be over libral in order to edge itself out of request.

When the policy has been issued, the threat for the pitfall ensured against is covered. The event against which protection is given or not materialized when the loss ensured against actually occurs, the ensured has got to make a claim on the insurer for remuneration of loss and admitted genuine claims should be settled instantly for an insurance company to maintain a good public image(M.N. Mishra 2002). But if loss doesn’t do, no payment would be made to the ensured.

It’s thus, obligatory on the part of the insurer to compensate the ensured( their customer) whenever there’s loss on the item ensured against as long as the ensured abides to the condition stated in the contract or policy.

constantly, of course, claims are settled following accommodations between insured and insurer, or parties acting on their behalf similar as assessors and loss adjusters. The reported cases have been concerned with whether an insurer can renew a agreement, but it conceivable that an ensured could do so on the ground of misrepresentation overdue influence by the insurer( John Birds 1997) this however would be delicate to show. The first and most important point to make is that the announcement of a claim is the responsibility of the insurer.

Worthy of citation, is that public should appreciate that insurance isn’t a charity. The shareholders of an insurance company should look forward in making profit just like any other shareholders in other marketable enterprise.

still, the interest of the policy’s is to satisfy their profit motive. They’re obviously in business just because they’re policyholders. The insurers should appreciate that claim agreement is their shop windows.

Statement Of The Problem

unintentional to educate public duly on the compass, functions, and limitations of insurance as well as the introductory rules that govern insurance deals especially on the issue of claim agreement and how to abide by the rules and regulations guiding insurance company.

Objects Of The Study

The broad ideal of this study is to estimate the approach of insurance companies to claim agreement in the Nigerian insurance companies.

The specific objects include the following.

1. To find out if approach of insurance companies to claim agreement is effective.

2. To find out if insurance companies are staking on the ignorance or ignorance of the assuring public towards claim agreement.

3. To find out if the issue of under agreement is common.

4.