ANALYSIS OF THE BASIC PRINCIPLES OF INSURANCE UNDER THE NIGERIAN LAW OF INSURANCE
Chapter 1
General introduction
1.0.0 Introduction
Because of high literacy in Nigerian society, many people are unfamiliar with insurance policies. However, with the adoption of the Insurance Ordinance [1], awareness of insurance contracts has increased. Therefore, more people took steps to insure their property and life. Unfortunately, however, a high percentage of claims may not be covered as a result of non-compliance with insurance principles. These principles are numerous and form the basis of insurance contracts. Failure to comply with any of the principles may invalidate the policy. The need to understand the basic principles of insurance and have secondary knowledge cannot be overemphasized.
These insurance principles are: ii) goodwill/disclosure; iii) reliance; iv) proximate cause; v) coverage vi) “no premium, no insurance” is the basis of the insurance contract, without which the purpose of the insurance becomes invalid.
The purpose of insurance is not exaggerated. This is easily understood from the various definitions of insurance. For PRUDENTIAL INSURANCE COMPANY V INLAND REVENUE COMMISSIONER[2], an insurance contract was defined as:
A person, known as the “insurer,” pays another person, known as the “insured,” an amount of money in return for consideration, known as a premium, on the occurrence of a specified event. a contract in which you agree to pay or agree to pay the equivalent
Insurance is a complex economic and social tool for managing risks to life and property. It is social in nature as it represents a diverse collaboration of diverse people for mutual benefit by combining means of mitigating the consequences of similar risks.
Simply put, insurance is about restoring the victim to the condition before the damage occurred. It aims to eliminate the consequences of damage by ensuring that the insured does not suffer any consequential loss. However, as mentioned above, you cannot make a claim under an insurance policy unless you meet all the requirements of the Core Principles of Insurance.
1.1.0 Research Background
Insurance law is known for its general principles, one of which is the principle of compensation. Other principles are insured interest, maximum good faith, subrogation, contribution, and proximate cause. Principles provide general guidelines that do not contain specific directions that vary from subject to subject.
The basic principles governing insurance law arise from the nature of insurance contracts, devised many years ago by legal traders and adopted by common law. This principle applies to all insurance classes: life and non-life, marine and non-marine. An insurance contract, by its very nature, assumes that the insurer will pay a certain amount upon the occurrence of an insured event. However, the event must be uncertain. The uncertainty that an event will occur, as in fire insurance, accident insurance, or life insurance, where death is the necessary end to all human life, but the timing of death is uncertain. Compared to other areas of law, no other law utilizes as many general principles and has as much impact as insurance.
1.2.0 Objectives and Objectives of the Research
The purpose of this topic is to educate the public about this seemingly insignificant area of insurance, even though it is the basis of insurance contracts. Therefore, this topic aims to consider the position of both the insurer and the insured. The aim and purpose of this study is also to eliminate or at least minimize such misunderstandings by establishing “rules of the game” in favor of the parties involved in an insurance contract or transaction.
1.3.0 Main Areas
This project primarily focuses on the basic principles of insurance under the Nigerian Insurance Law, how they affect insurance contracts, how to minimize this impact, and the determination of when claims are and are not principled. is focused on
1.4.0 Scope of investigation
The scope of this study is insurance law in Nigeria. Areas covered include, but are not limited to analysis of insurance fundamentals.
Insurance Interest, Maximum Honesty, Disclosures and Proposals, Forms, Premium Policy, Coverage, Transfer, and Immediate Causes in relation to Insurance Contracts under the Insurance Law of Nigeria.
1.5.0 Methodology
The style adopted in this essay is expository and narrative. To achieve this goal, this paper draws on secondary sources from textbooks, legal reports, views of legal practitioners, judgments, dictionaries and encyclopedias on the subject, and of course the Internet. . It is important to note that not many articles and journals have been written in this area of law and the few that are available are underutilized.
1.6.0 Literature review
Many foreign books, however, do not cover the subject of this essay in detail, but his one of the concept of insurance interest, while most Nigerian authors do not cover the basic principles of insurance. The skillful handling of , reduces the burden of this task. A key author in this regard is J.O. Irukwu on Insurance Law and Practice in Nigeria. Prof. Olusegun Yerokun on Insurance Law of Nigeria and Prof. Funmi Adeyemi on Insurance Law of Nigeria.
According to J.O. According to Irukwu, the basic principles of insurance law practice applicable in Nigeria are the interests of the insured, maximum honesty, disclosure, indemnity, subrogation and proximate cause. Irukwu has principles on the subject that he established in Nigeria before the Insurance Act 2003 was enacted, but some of these principles remain in line with the Insurance Act 2003. Applicable law is used like any other material. His Olusegun Yerokun text on insurance law in Nigeria provides a comprehensive analysis of all aspects of insurance law. Following the repeal of the Insurance Act 1991, the promulgation of the Insurance Act 1997 and his Insurance Act 2003, which is now in force, the content reflects legislative changes. The basic principles of insurance under Jerokun are insurance interest, highest integrity, compensation, reimbursement,
Disclosure, Premium and Proximity Causes. There is also his M.C. Okany writing on Nigerian commercial law. It holds that insurance contracts are governed by general contractual principles, but because of their particular nature, all insurance contracts are further governed by special or fundamental principles. These insurance principles by M. C OKany is the utmost good faith, guaranteed interest, indemnification, and subrogation. the work and contributions of these talented people
1.7.0 Definition of Terms
To properly understand the topic of this project, you should familiarize yourself with some basic insurance terminology.
Danger:
The risk of loss of the insured in insurance law [3]. In an insurance contract, the insurer promises to protect the insured against certain losses, and the insurer receives a premium for taking the risk of such loss. Therefore, policies should be associated with risks.
Damage control:
If the insured has an accident, the insured must take all necessary measures to mitigate or minimize the damage. Failure to do so may allow the insurer to avoid paying for damages caused by negligence, but the insured has an obligation to do his best for the insurer, but not the insurer. You have to remember that his life. guarantee:
A guarantee or warranty to ensure the safety of all. It also means compensating a person for financial losses due to certain risks or possible liabilities4.
Insured:
Insured is the policyholder entitled to compensation or monetary compensation in the event of an insured event. An insured person is also a person who has health insurance, life insurance, property insurance, or other insurance [4]. Insurance company:
He is the person who undertakes to pay money to the insured or to the insured, taking into account the amount paid to him by the insured (the premium) on the occurrence of a particular event. Examples of insurance companies include Mutual Aid Associations and Nikon Insurance Company[5].
3rd page:
An insurance contract has his two parties, the insurer and the policyholder. All other persons are called third parties because they are outside the contract and are not parties to the insurance contract between the policyholder and the insurer. For example, a pedestrian who is run over by an insured in a traffic accident is a third party and is not covered by the contract between the insurer and the insured [6]. Insurance company:
A legal entity or body whose business is to enter into insurance contracts[7]. It must also be registered under Nigerian law.
1.8.0 Conclusion
Insurance is fast becoming a household name in Nigeria and more and more people are starting to take an interest in the subject.
This chapter decomposes the subject matter of the problem and identifies its importance or usefulness in order to understand what insurance is and to satisfy the curiosity to know what insurance is and the basic principles of insurance. We started with a general introduction.
Although brief, the preface sought to shed light on the importance of insurance to humanity, or its existence and definition by judicial decision. It went on to state the aims and objectives of the study. It follows the scope of the study, the focus of the study and the specific research methodology where information about the project is obtained. A literature review was not omitted. The research also continued with specific terms that readers will encounter in the course of this work. In some ways, this chapter is a sort of starting point for what to expect from the study of subsequent chapters.
[1] 1994 No. 68 [2] (1904) 2K.B 658 [3] Henry Campbell Black, M.A., Black’s Law Dictionary, Sixth Edition, Centennial ed (1891-1999) p. 8074 Ibid., p. 808 [4] Ibid. p.808 [5] RoughlyIlk J.O.:
Automobile and Accident Insurance (3rd ed., Heinemann, Ibadan), 1991
Insurance law and practice in Nigeria. (Heinemann, Ibadan) 1991p. 12 [7] Black’s Law Dictionary, p. 804
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