ABSTRACT
This project work is
entitled, the impact of insurance on the economic development of Nigeria. It was
carried out in NICON Insurance Corporation Lagos as a case study. The objective of this
research is to comprehensively examine the impact of Insurance on the economic
development of Nigeria.
This study is categorized into five (5) chapters. Chapter one is basically an
introduction from which the subsequent chapters draw their root. It talks about
the background of the study statement of problem, objective of the study,
relevance of study formulated and operational definition of terms. Chapter two
is a review of other professional insurer as they relate to the above mentioned
topic. It is sub-divided into twenty — three (23) heading where we have the
fundamental principles of insurance law, insurable interest, insurable
interest, types of insurance functions, the significance, the importance and
problem etc. Chapter three (3) of this study deals with the various research
methodology and procedure adopted or used in administrating data collection and
chapter four (4) analysis of the data collected and presentation of the result
of the hypothesis stated. Conclusively, chapter five (5) being the last chapter
briefly summarized the previous chapter and the research finding, conclusion
and recommendation were also made in this chapter as well as reference and
appendix.
TABLE
OF CONTENTS
Title Page
Certification --- --- --- --- --- --- --- --- --- i
Dedication --- --- --- --- --- --- --- --- --- ii
Acknowledgements --- --- --- --- --- --- --- --- iii
Table of Contents --- --- --- --- --- --- --- --- iv
Abstract --- --- --- --- --- --- --- --- --- --- vii
CHAPTER ONE: INTROUDCTION
1.1
Background to the Study --- --- --- --- --- --- 1
1.2
Statement of the Problem --- --- --- --- --- --- 2
1.3
Research Questions --- --- --- --- --- --- --- 3
1.4
Objective of the Study --- --- --- --- --- --- --- 3
1.5
Statement of Hypotheses
--- --- --- --- --- --- 5
1.6
Scope of the Study --- --- --- --- --- --- --- 5
1.7
Significance of the Study --- --- --- --- --- --- 6
1.8
Limitation of the Study --- --- --- --- --- --- 6
1.9
Operational Definition of Terms --- --- --- --- --- 7
CHAPTER
TWO: LITERATURE REVIEW
2.1 Fundamental Principles of Insurance Law--- --- --- --- 8
2.2 Types of Insurance --- --- --- --- --- --- --- 10
2.3 Types of Fir Insurance --- --- --- --- --- --- 11
2.4 Workmen’s Compensation Insurance --- --- --- --- 14
2.5 Function of Insurance Business --- --- --- ---
--- 19
2.6 Types of Insurance Risk --- --- --- --- --- --- 21
2.7 The Significance of Insurance Business on
the Economic Development of Nigeria
--- --- --- ---
--- --- 23
2.8 Prospect of Insurance --- --- --- --- --- --- 25
CHAPTER THREE: RESEARCH
METHOD
3.1 Research Design --- --- --- --- --- --- --- 26
3.2 Population of the Study--- --- --- --- --- --- 26
3.3 Sample and Sampling Techniques --- --- --- --- --- 27
3.4 Method of Data Collection --- --- --- --- --- --- 27
3.6 Method of Data Analysis --- --- --- --- --- --- 27
CHAPTER FOUR: DATA
PRESENTATION ANALYSIS AND DISCUSSION
4.1 Data Presentation --- --- --- --- --- --- --- 29
4.2 Test of Hypotheses --- --- --- --- --- --- --- 31
4.3 Discussion of Findings --- ---- --- --- --- --- 46
CHPATER FIVE: SUMMARY
CONCLUSION AND RECOMMENDATIONS
5.1 Summary --- --- --- --- --- --- --- --- --- 47
5.2 Conclusion --- --- --- --- --- --- --- --- 48
5.3 Recommendations --- --- --- --- --- --- --- 49
References
Appendices
CHAPTER ONE
INTRODUCTION
1.1 Background
to the Study
Development in our society has made
living complex and risky to life and properties. This has become so great that
the traditional methods of assisting those affected by misfortunes in our
societies are no longer adequate. Therefore, societies call for a more reliable
and adequate means by which risk or any misfortunes can be covered in the
future, and here lies the importance of insurance which safeguard against risks
or losses incurred by clients.
Majority of the people in our society
today are either ignorant or have a misconception of what insurance entails.
What role it plays or its usefulness in the promotion of trade and commerce. As
a service industry insurance plays a very important role in the economic and
social development of a nation. In appreciation of this, the government has
continued to take steps to regulate the activities of the insurance business in
order to create a sound and efficient insurance market.
Insurance business is one of the
subjects that have been securing the public in this country. Many people
outside the periphery of the business have looked at the institution with
disdain and they are simply suspicious of the insurer and their styles of
business. They claim that insurer are only interested in collecting premium and
hardly settle claims, whenever they arise.
1.2 Statement
of the Problem
The insurance industry is one of the
misrepresented businesses in the world today. This is mainly due to lack of
knowledge on the part of the public concerning their activities. The degree of
knowledge varies from century to century and is relative to the state of socio-
economic development in each individual country concerned, which may in turn be
governed by the level of the literacy component of each community.
In developing economy, problems
association with the misconception of the impact of insurance are not as
pronounced as in under developed countries, industry Nigeria. All attempts in
developing a sound insurance. Industry have been confronted by market
distortions, high race of inflation, various government regulations, unethical
practices and fraudulent tendencies of the insuring public there are
overwhelming. There is little behavior, which indicates that, the Nigerian
public. Literature or otherwise know little or nothing about the operation of
the insurance business.
1.3 Research
Questions
Consequently, many questions have
been asked.
(1) Should,
Companies/brokers continue to exploit the general public as a result of their
ignorance about the industry?
(2) Is
there any need to control the business at all?
(3) What
are the control measures?
1.4 Objective
of the Study
On a cursory look at the Insurance
mechanism, it would be seen that insurance is a service rendering business.
There are special social characteristic of insurance that set it apart from
tangible goods industries. Being mostly a contact of indemnity and more so that
insurance is a commodity, which people pay for in advance and whose benefits
are reaped in the future. Furthermore, the objective of the study is to throw
light on the activities of the insurance with the view to arousing the
awareness of the policyholder and prospective ones. This will be achieved by
highlighting the insurance mechanism, discovering the weak areas, that need to
be strengthened and recommendation will be proffered for further study.
Also the study is to highlight the
fundamental principle of insurance, which the society has not been able to
recognize. This work is made in such way as to highlight the need for Insurance
in our society. Taking all these into consideration, the following are the
objective of this study:
1.
The main objective of this study is to outline
the functions, roles and contribution of insurance business to the development
of the national economy.
2.
To
identify if insurance business are useful to our day to - day activities and
the entire society.
3.
To
ascertain if insurance business actually perform their financial roles
diligently.
4.
To
suggest way of improving the function of the insurance business.
1.5 Statement
of Hypotheses
To establish the fact about insurance
business and impact on economic development in Nigeria the following hypothesis
have been formulated:
(1)
The
Insurance business does not play any significant role in the economic growth of
a nation.
(2)
Trade cannot achieve its desired goals in a nation
with the aid of insurance business.
(3)
People who insure their insurable properties have no
advantage over those who do not in terms of losses
1.6 Scope
of the Study
The scope of the study has been
limited to the insurance companies in
Nigeria. The research work is centered on the impact of insurance companies on
economic development in Nigeria and the importance of insurance to individuals.
The importance includes the function, benefit of insurance to the society as
whole.
1.7 Significance
of the Study
The research is done a way that it
will contribute to the body of knowledge of Insurance. The research work will
help in popularizing the importance of insurance business towards the
achievement of the economic a1s of the country. The research work will give the
general public the chance to learn about the principle on which insurance
business operate and o remove doubt in the mind of the people with regards to
the business style of insurance business. Finally, it is hoped that this
research work would also make a great Contribution to academic development.
1.8 Limitation
of the Study
The problems
encountered that limits the success of the project, such as:
Time
Factor: There was little time for the researcher to gather all
the necessary data required in carrying out this study.
Data
Collection Problem: Availability of current and accurate data
made things difficult for the researcher.
1.9 Operational
Definition of Terms
Risk: This can be said to be anything that occurs to an individual inform of
loss something that is unforeseen, which could be detrimental partly or fully.
Fraudulent: This is illegal misappropriation of fund, which is
recognized by law.
Inflation: This is where too much money is in circulation.
Distortion: This means the change in dimension of any matter or state of
an event.
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