CHAPTER ONE
INTRODUCTION
1.1
BACK GROUND OF
THE STUDY
The determinant of every marking is the ability of
the producer to provide for the consumers the quantity and quality of the goods
that will satisfy them at affordable prize, provided at accessible places. In
event to provide these goods, the producer should consider the consumer as a
“king “because with out the consumer the producer cannot be in business.
Insurance market consist of buyers intermediate and sellers of insurance
polities, individual as well as corporate organization have different attitudes
of individuals and corporate organization towards insurance is greatly
influenced by consumers attitude, Apparently the attitude of a client towards
the sole of insurance services is a function of two broad group of factors
namely. The controllable and uncontrollable frees. The controllable factors are
bordering mainly on the usual marketing mix, comprises the element of insurance
marketing, namely product planning, prizing, distribution channel, advertising
and sales promotion. The uncontrollable forces are social economic,
technological psychological political and legal forces, outside the direct
cannot of insurance, some social risk also contribute for the need of
insurance, there are theft, burglary and house breaking, arson, has progressed
tremendously during the century especially in period of inflation.
As a result of introduction of new business or
diversification of business which brings about increase in value and produce
line.
Insurance contract in Nigeria has progressed tremendously
during as far as insurance is concerned, Nigerians are easily spurred into
action only when they hear that an insurable disaster has befallen on someone
or the other, in recent time, there has been proliferation of social clubs,
more of these clubs guarantee the payment of fixed sum of money to the
dependants of a deceased member, experience has shown that these clubs make the
said payment with reasonable dispaten on the death of a member, on the other
hand insurance payment condition stresses the satisfaction of certain legal
requirement and hence the payment for some time. Level of literacy is still low
in Nigeria,
this in itself couples with low per capital level of income also account for
the low rate entering into insurance contract.
1.2
STATEMENT OF THE
PROBLEM.
The problem associated to this
thesis are:-
1.
To identity why
the social economic value of insurance is not easily appreciated by the general
public.
2.
To identity why
the effect of moral laxity and poor conduct of the insurance companies
3.
To identity why
the general public misunderstood the technical word, used in drawing up
insurance contract.
4.
To identity way
some insurance company do not settle claims on time.
1.3
OBJECTIVE OF THE
STUDY.
The objective of the study is
as follows:-
1.
To improve the settlement
of claims by insurers.
2.
To provide a
mechanism framework that will help in educating the general public on the
benefit of insurance.
3.
To improve on
the construction of policies with such words that not is confusion to the
public.
4.
To potray
insurance as a service capable of taking care of loss occasional by the insured
and not like a social club.
5.
To improve on
how to increase public awareness of insurance such that will be more
informative.
1.4
SIGNIFICANCE OF
THE STUDY
The
important of this study is to ensure positive consumers attitude towards
insurance contract. Apart from this, there are other important attached to it,
they are as followed.
1.
This study will be of immense help to the general
public to employ a professional, such as broke that will guade them according
2.
It will also help the insurance company to observe the
effect of non – settlement of llairs or delay in settlement of claims.
3.
This study wine encourages the insurance companies to
always use qualified personal (intermediaries) that wine guides the customers
according to the norms or the contract.
4.
This project work wine be of important to the
insured to suggest the best time and low to exercise his rights throughout the
contract.
1.5 SCOPE
AND LIMITATION OF THE STUDY:
The
research work is limited only to the Nigerian consumers of insurance services
and the insurance companies, because of its wide area of coverage, the
following constraints abound. Outside may normal classroom work, there are
other study that help me in writing this project.
The
greatest limitation was that of financial
Inadequacy, this there fore affected my movement in terms of traveling
thru and fro in some states like Imo Abia, and Enugu, i.e. I was some state not able to
gather all the information needed for the study.
The unco-operating attitude of some
respondents posed some problem to his research, it is known that many
respondent are usually very rductant in discussing some important information
1.6
DEFINITION OF TERMS:
A Contract: this is a legal binding agreement
between two parties, which must have qualities of valied contract, for a
example consideration, offer, and acceptance e.t.c which is untraceable by law.
b.
Policy: this is a guidance of insurance contract, it
provide proof on the terms of contract of insurance.
c.
Insurer: An insurer is a party to the insurance
contract who undertakes to indemnify the other, for a monetary consideration,
of the insured event.
d.
Insured: A party to the insurance contract covered
against certain risks for monetary consideration.
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