The Economic And Importance Of Motor Insurance In Our Society

The Economic And Importance Of Motor Insurance In Our Society

Chapter One

Preface

Background Of The Study

Insurance can be seen from numerous points of view according to Hezen IbeabuchiI.( 2000) preface to insurance, she hypothecate that insurance is a process of transferring a threat from one party to another. Secondly, insurance can be defined as a contract between two parties the insurer and the ensured( proposer), whereby the insured pay a relative quantum of plutocrat called decoration to that the insurer will accepted his threat and pay sum ensured( reprisal) if the threat of the ensured do at a contracted period of time.

Thirdly, we can say that insurance is whereby the numerous fortunate bones compensate the many unfortunate bones . Eventually, we can say that insurances is a tone companion against threat.

Motor vehicle first appeared on the roads during the time 1880s and the stovepipe first motor insurance programs were issued during the 1890s. In drawing up this new type of programs insures were told by their experience of fire, theft and liability insurance and as a result of that they placed further emphasis on the subject matter of the insurance( the vehicle) for standing purposes than they did up on the motorist.

currently, they give further weight to the motorist and his experience; particularly, to the boung motorist. The early bears of the twentieth century saw for conformation of insurance companies in which the main emphasis was upon motor.

The experience of the theft and liability insurance told the development of compound companies and when motor vehicle appeared on the roads in larger number after the 1st world war, drivers services. By the late 1920s these services, utmost of which belonged to the Accident services Association( include within the Association of British insurer on its conformation during 1985) had come to realize that their joint and several interests would best be served if they were to agree to borrow a more or less standard set of guidelines and base rates for motor insurance.

During the Second World War competition for motor insurance subsided. One reason among other was that there were many vehicles in private use.

After the war, still, established motor insurers picked up more or less where they had left off but a news, point was the appearance of what came to be known as “ mushroom ” companies.

These aimed for first growth by offering lower decorations and advanced rates of commission and by managing limit functional charges through streamlining executive and underwriting styles.

For illustration, they gave brokers, increased financing authority and needed them to prepare signatures and to reuse claims for early agreement are of the companies was the first to prepare programs by computer. The increased competition provides by similar companies was largely responsible for the invalidation of the tariff in 1968. These mushroom companies not have sufficient skill to maintain acceptable solvency periphery and the result was a serious of insolvencies.

These lead to demands for lesser control ever for nationalization of motor insurance, demands which have been strenuously defied by insurance and may members of the public.

Preface Of Compulsory Motor Insurance

After the end of 1914-18 war, the number of vehicles in road increased veritably well and this led to an increase in road accident. Those injured through the fault of drivers weren’t suitable to gain compensation because the automobilist may be uninsured end without effective coffers to pay damage. These effects led to the preface of Road Traffic Act 1930 which assessed for the first time a statutory obligation on the druggies of all motor vehicles to give security against their legal liability for causing death or fleshly injury to the third parties. In 1972, the Act was to include the arrears of a automobilist to passengers in his own vehicle. The mandatory third party insurance law was consolidated into part VI of the Road Act 1974 and was amended by the Road Traffic Act 1974.

Types Of Motor Insurance Policy

– Road Traffic Act Policy

– Third Party only Policy

– Third Party, Five and Theft policy

-Comprehensive policy

Statement Of Problems

In this section, the experimenter concentrated on the current problems facing profitable significance of motor insurance in our society.

1. Lack of acceptable compensation concerning injury and damage to the third party.

2. Low operation of motor insurance contract.

3. shy actuality of uninsured vehicle the high way

4. Lack of acceptable information of motor insurance contract.

5. Low position creation of motor insurance business.

6. Lack of acceptable service rendered by insurance mediators

7. shy of claim agreement of motor insurance

8. shy cover of motor insurance business

9. Lack of stimulant from the insurer and mediators.

10. Lack of threat operation of motor insurance contract.

Ideal Of The Study

The ideal that made the experimenters go into this content are as follows.

To determine the profitable significance of motor insurance in our society

To find out a strategy that can help in the developing of motor insurance in our society

To determines the reason for lack information of motor insurance contract.

To determine the reason for lack of acceptable compensation

To determine the cause of low operation of motor insurance contract.

To determine the cause of low position services of the mediators.

Significance Of The Study

i. The significance of this study is to achieve a great success and to break some current problems encounter in motor insurance contract.

ii. It’ll inversely help to expose to the entire citizen or public the important of motor insurance contract.

iii. It’ll produce a strategy for developing and enhancement of motor insurance practice in Nigeria.

iv. Eventually, the result that we generated from this exploration work, will be immense benefit to all operation staff of motor insurance in Nigeria and as well as pupil conducting analogous exploration work on the same content or content related to it.

Compass And Limitation Of The Study

In the course of this study, one would like together data from numerous areas. But in view of length of time allowed for this exploration, such a wide ranges sample study was nearly external delicate. thus, the experimenter we concentrate his field work within Enugu megalopolis. The choice of Enugu megalopolis was grounded on the time factor allowed and upon practical considerations including the fact that the exploration follows nearly everything about Enugu megalopolis.

Besides, there are numerous problems that we encounter when carrying out the experimenter work.

fiscal constraint- As a pupil, there wasn’t enough capital to spend in transport and fact finding and borrowing of necessary literature that would have helped in the jotting of this exploration work.

Time factor- As a result of short time and fastness of examination approach we didn’t have a lot of time to cover the areas we supposed to cover.

Description Of Terms

Motor Can be defined as any mechanically propelled machine which has further than three tyres and plys on the roads.

Society A system in which people live together in organized communities.

Economics This is the principle of the products and distribution of goods and services and development of wealth.

Contract It’s a legal agreement between two parties which is honored by law court.

Insurance Is a person who’s a professional in insurance business. There are the people that exercise insurance in insurance diligence.