ABSTRACT
This project is the role of insurance
companies in Nigeria
economic development. The insurance industry, from all indication plays a vital
role in Nigeria economic
development as well as in the problem of risk management in Nigeria. It is
very obvious that the majority of the public who are ignorant of the
contributions made by the insurance industry have more faith in the banking and
other financial institution but these people forget the fact that the banking
institution acknowledges the fact that the insurance companies contribute
significantly to the development of the economy of the nation.
Chapter two is the review of related literature the most prominent among
there were the extended family system the age grade association and the provide
some kind of insurance covers to their member especially during adverse period.
Chapter three is a research design and methodology as this project work
is done on secondary data only. And
chapter four is the findings that from the research and finding are that
insurance companies settle more loss claim now than before.
Chapter five is the conclusion and recommendation.
ACKNOWLEDGE
I hereby acknowledge the academic and
moral support received from dr john oriji (director of school of financial
studies). Mr. J. C. Odike former director school of financial studies and other
in department such as Mr. Udeh, S. O. Mr. ikecheonwo B.T. Mr. Iloh J. VC and
Okafor P.C.
Finally, I acknowledge my dear EDDY and MUMMY
my brothers and sisters and also Rev FRANTONY AGU for there support in my
studies and to unmentioned who help me in various way i have nothing to give
but i pray that almighty father will reward them back in the name of the father
and son and of the holy spirit a-men and a-men.
TABLE OF CONTENTS
TITLE PAGE I
DEDICATION 11
ACKNOWLEDGEMENT 111
INTRODUCTION
IV
ABSTRACT V
TABLE OF CONTENTS
VI
CHAPTER ONE
1.0 INTRODUCTION AND BACKGROUND OF THE
STUDY 1
1.1 STATEMENT OF THE PROBLEM 2
1.2 PURPOSE /OBJECTIVE OF THE STUDY 3
1.3 SIGNIFICANCE OF THE STUDY 4
1.4 LIMITATION OF THE STUDY 5
1.5 REFERENCES
6
CHAPTER TWO
2.0 LITERATURE REVIEW 7
2.1 THEIR ROLES IN DEVELOPMENT OF OUR
NATION ECONOMY
8
2.2 DIFFERENT CLASSES OF INSURANCE AND
THEIR CONTRIBUTION IN ECONOMIC DEVELOPMENT
9
2.3 REFERENCES
10
CHAPTER THREE
3.0. RESEARCH DESIGN AND METHODOLOGY 11
3.1 SOURCES OF DATA
12
3.2 LOCATION OF DATA
13
3.3 METHOD OF DATA COLLECTION AND
METHODOLOGY OF INVESTIGATION
14
CHAPTER FOUR
4.0. FINDINGS
15
CHAPTER FIVE
5.0 CONCLUSION AND
RECOMMENDATION
16
5.1 RECOMMENDATION
17
BIBLIOGRAPHY
18
CHAPTER ONE
INTRODUCTION BACKGROUND OF THE STUDY
Insurance has been defined as an
economic device where by risk of people and economic enterprises are
transformed from in individual to a group in the process the individual pay’s a
fee know as the premium to the group for the assumption of risk in the evidence
of the contract of risk assumption, the group issues document known as the
insurance policy. To the individual the total of the fee paid to the group by
the policy holder constitutions the fund or pools from which losses of
individual members of the group are paid the group is known as the insurance
while the individual is referred to as the insured.
The insurance industry from all indication plays a vital role in Nigeria economic development as well as in the
problem of risk management in Nigeria.
It is very obvious that the majority of the public who are ignorant of the
contributions made by the insurance industry have more faith in the banking or
other financial industries. But these people forget the fact that the banking institution
acknowledges the fact that the insurance companies contribute significantly to
the development of the economy of the nation. And this is why loans collected
from them. The establishment of NDIC to
help curb the rate of distress bank is another measure to slow that the role of
insurance is very vital to economic development. The government had since, also
seen the important of the insurance institution in risk management and
development. Because of these the government has made some insurance policies
compulsory in Nigeria.
As can be seen in various insurance. Acts that every or any motor owner must
have one of the various insurance covers available in motor insurance in the
country. The government had also made it compulsory that all her big building
must be insured against fire.
Therefore in this study are going to
stress within my scope and unit of the information in my reach the role played
by the insurance institution in the economic development of the nation.
1.2
STATEMENT OF THE PROBLEM
THE PROBLEM FACING INSURANCE COMPANIES IN NIGERIA.
Here!? I want to have a general
discussion on some problem that hinder to insurance institutions from servicing
their aim to economic development. These problems include the following:
SOCIO- ECONOMIC PROBLEM. There are some socio-economic factor which generally
affects the attitude of Nigeria
toward insurance these factors are religions belief, cultural background low,
economic income pretence for ostentations life to thrift and the level of
development. As a matter of fact, “some cultures for instance look at life
policy as inhuman hence some muslems have manifested strong religion
entergenusm to life assurance.
Finally, at our resent level of development
there is limited personal prosperity on which insurance could be secured and
since most people are living from hand to month†insurance receive less
attention. All these lead to the general problem of poor attitude of Nigerians
towards insurance.
TECHNICAL PROBLEM
Technical problems in insurance encompass
those problems relating to manpower, level of education and poor capital base.
If you ask any body who has any idea about insurance he will tell you that the
basic problem with the insurance is lack of adequate technically qualified
manpower.
Initially. People were not interested in taking up insurance jobs and
those who eventually take up the job are poorly educated on the field the
situation is worsened by the lack of property coordinated training programme
for the staff. Consequently the services of the industry are below expectation
due to inadequate made of premium collection. Lack of reliable statistics and
poor settlement of claims.
Many people rush into the business of insurance through lack door means
without meeting up the capital and other requirements. So when they are struck
by hand economic situation, failure becomes theirs.
LEGISLATIVE PROBLEMS
This basically is the restriction
imposed on the insurance industry under section 18 of the 1976, insurance
decree. The restriction is a problem because as investment is limited only to
public companies with paid –up some capital not less then one million naira, the
non- quoted public companies are precluded from participating in insurance
finding. Since most indigenous Nigeria company are not quieted however as they
might stand since some vast multi-million naira companies remain privates their
securities are outside the scope to be patronized by insurance venture capital.
Since the number of quoted companies is still very small, this limit to the scope
of insurance investment is a constraint on option investment decision and
potentially reduce income and grant in the industry by reducing the outlook for
insurance find to attain maximum value.
1.3 PURPOSE /OBJECTIVE OF THE STUDY
There are many objective of insurance
it includes:
I.
Primary,
it guarantee that the insured will be indemnified (compensated) in the event of
insured risk happening
II.
The
world economic system would obvious grind to a half if there had not been an
institution like insurance closely follows trade and commerce giving helping
hand in times of distress.
III.
Investment
of insurance companies helps to finance new project and thereby greater
employment opportunities for job seekers and also increase national wealth.
1.4 SIGNIFICANCE OF THE STUDY
NEED TO INVOLVE INSURANCE IN NATIONAL DEVELOPMENT PROGRAMMES
This country belongs to
us all and we have to sit down to salvage. It together in a common slogon by
the former head of the state general ……………………….. (RTD) but how can one salvage
the economy of a place where he dose not know how policies that directly affect
him are received at dictatorship is the bone of human initiative. The insurance
companies very frequently are not involved when important economic discussions
are being undertaken by the government. The industry therefore dose not fulfill
its role in economic development. Because they do not partake in government
decision particularly to say areas they could fit in well.
Therefore, i am suggesting that the insurance industry, through the Nigeria
insurance association (NIA) be involved in national development plans. This
will obvious put the national level of development on higher scale.
1.5 LIMITATION OF THE STUDY
THE DEFINITION OF TERMS
Insurance is defined as a
safe guard against risk. Any device aimed at reducing the chances of a risk
occurring, when it happens, reducing, the extent of its damage and providing
the affected persons with compensation is a from of insurance.
Insurance as a modern concept for solving
risk related problems depends on co0operation of a longer number of people for
its success this is the basic fundamental of insurance.
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