ABSTRACT
This study is aim at critically examine the impact
of Insurance Companies to economic development in Nigeria.
It was discovered that insurance companies provided
meaningful contribution to economy development. We can says that insurance
company indemnity their client when problem in ascertained.
Also insurance company provides assistance to the
entrepreneur when the problem is happen.
Finally, insurance company is contribute greatly to
the development of the nation by protect financial institution against loss of
the capital.
TABLE OF CONTENT
Title page
Certificate
Dedication
Acknowledgement
Abstract
Table of content
CHAPTER ONE
1.0 Introduction
1.1 Background
of the study
1.2 Statement
of the problem
1.3 Statement
of the hypothesis
1.4 Purpose
of the study
1.5 Significance
of the study
1.6 Limitation
of the study
1.7 Definition
of terms
CHAPTER TWO
2.0 Literature
review
2.1 History
of Insurance Company in Nigeria
2.2 Regulatory environment of Insurance business
in Nigeria
2.3 Types of Insurance
2.4 Basic principles of Insurance
2.5 Organisation structure of Insurance Company
2.6 Insurance agents an brokers
2.7 Underwriting
CHAPTER THREE
3.0 Research Methodology
3.1 Sources of data collected
3.2 Research instrument used
3.3 Method of data analysis
3.4 Method of analysis data
3.5 Method of testing hypothesis
3.6 Limitation of data collection
CHAPTER FOUR
4.0 Data presentation and analysis
4.1 Data presentation
4.2 Data analysis and interpretation
4.3 Testing of hypothesis
4.4 Summary of findings
CHAPTER FIVE
5.0 Summary, Conclusion and recommendation
5.1 Summary
5.2 Conclusion
5.3 Recommendation
References
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Insurance has been existence as far as when the
people of old realized the gratuity of financial losses.
In actual sense, modern Insurance started in Nigeria in the 20th century with the
opening of an agency in Lagos
by the Royal Exchange of London in 1921. this company documented all the
Insurance business in Nigeria
until 1949 when three other.
British owned Insurance Companies joined the scene
up till the time the country attained its political independence in 1960. There
were about 25 Insurance Companies operating. All except three that were foreign
owned. During this period demand for Insurance was dictated by the requirement
of the foreign businessmen that brought their goods into their country or
exported raw materials to their countries.
All technical matters including investments of found
were handedly the expatriate from 1960, the rate at which insurance industries
has grown extraordinary. Some of the Nigerian who has earlier on engages. In
insurance business individually or group or in partnership with foreigner have
now established indigenous insurance companies.
Prior to the incorporation of the first get of
indigenous insurance company, effect of foreign insurance companies have under
written insurance business in the country. The political independence
facilitate speedily period of economic activities.
This led to the formation of indigenous or state
owned, insurance companies.
FUNCTION OF
INSURANCE
Many
writers have extorted the insurance industry by describing its role in the task
of natural development and reconstruction, but we will not be labour by listing
all of all these functions.
(a) Insurance provide guarantee to a person that their
individual financial loses will be fairly and equitably distributed over the
insured community or ground as a whole.
(b)By offering security to businessman and
industrialist, insurance is said to directly and indirectly, protect business
enterprises, more so insolvency monies are available to finance and replacement
as lost and damaged asset, compensate employee a third parties for injuries
sustained, even more willing to innovate and undertake high risk from
production so that society is provided with wide range of goods and service.
(c) Insurance company serves as an effective vehicle for
the mobilization of natural resources for the national development effort.
(d)Insurance company, like other companies is an important
employee of labour. This provides job opportunities for the teeming population
of this century and helping to solve unemployment problem.
INSURANCE IN NIGERIA
Organized
insurance business has been known to be practiced in Europe countries many year
ago, records who that such modern approach was not adopted in Nigeria until 1921 when the first insurance
officers was opened in Lagos
as an agent of the ROYAL EXCHANGE ASSURANCE OF LONDON and recommended in 1949.
however by the mid sixties, in spite of the large number of indigenous
companies which thus sparing up, their insurance market was controlled by a few
foreign interest.
CONTRIBUTION OF
INSURANCE TO GROSS DOMESTIC PRODUCT
The insurance company has contributed
immensely to the Gross Domestic Products of this country through its financial
of investment in Nigeria
industries.
The
provisions of finance for industry is significant to economic developments of
their property investment are in industrial building.
More
so, either directly or through subsidiary and association companies they
engaged in leasing industries vehicle, machinery and specialist equipment.
They
also provide some long-term loan to smaller firms.
Some offices have participated in the formation of
specialist institution to provide finance for smaller firm and for the
development of new products and process.
Also
insurance company is a subscriber to the loan issue of the major institutions
in that field, the industrialist and commercial financial corporation limited.
1.2 STATEMENT OF THE PROBLEM
Looking
at the topics of the project “The impact of Insurance Companies to economic
development in Nigeria”
many problem or questions can quickly come to one’s mind. The research work
will therefore examine the following pertinent questions. How can impact of
insurance be felt and what are the nature and importance of insurance companies
to economic development in Nigeria?
How can impacts of insurance companies be measured?
Finally, the research work will examine different types of operations and
economic significant.
1.3 STATEMENT OF HYPOTHESIS
This
section attempt to that hypothesis that has already been put forward in chapter
one.
Normally,
a text procedure for the hypothesis testing will be chi-square i.e. (Co-E)2
and the level of significant of 5% will be used throughout the testing.
HYPOTHESIS ONE
Ho: There is no significance relationship between
insurance companies and their meaningful contribution to the development of
economy.
Hi: There is significance relationship between
insurance companies and their meaningful contribution to the development of
economy.
HYPOTHESIS TWO
Ho: There is no significance relationship between
insurance company and their expectation client.
Hi: There is significance relationship between
insurance and their expectation of their client.
1.4 PURPOSE OF THE STUDY
The growth of insurance business is a feature key of
the modern would. It is a major risk management tool as well as a catalyst of
development. In the layman’s language, insurance business can be described as a
social device providing financial compensating for the efforts of a misfortune,
the payment being made from the accumulating contribution of all parties
participating in the scheme.
Insurance serve as safeguard against many risk to
which capital fund is exposed. The burden of losses of entrepreneur in commerce
and industry is also reduced by the insurance business.
Insurance also provides assistance to business
venture. It provides confidence and security needed to businessmen venture into
uncertain area of commerce and industry. Insurance plays a major role in the
finance of overseas trade.
This will not possible if marine and export credit
guarantee insurance schemes were not available. Insurance income accumulated
over time in Nigeria
investment, thereby encouraging the commercial and economic development of the
country.
1.5 SIGNIFICANT OF THE STUDY
The
economic significance of the study is the provision of security. In Nigeria,
security was providing to an individual by his tribe or the claim, or extended
family system. There was also age group, which provided security in various
term. As it will be readily appreciated insurance companies protect the
business interest of their insured, the policies offered to the public were
those generally used by these foreign companies in their home countries.
When independence was achieved in the 1960’s
insurance regulatory law were made and put into effect. The control regulations
provided for such matter as capitalization, shareholder, margin of solvency,
premium and public war dings investment of insurance funds, insurance,
intermediaries and qualifications of those engage in insurance.
In everyday life for example, man and his worldly
possessions are exposed to many types of risk as human being, we are exposed to
the risk of accidents, being attacked by a deadly disease and death, our
properties and possession are also exposed to damages that may arise from fire,
accident or loss through theft. Insurance has been developed to solve problems
poses by the risk, which we are continually exposed. Insurance therefore is a
mechanism where by the good fortunes of the many few who do not suffer losses
are used to compensate the unfortunates few who suffers losses, by placing them
as far as possible in the position which they were immediate before the loss.
Insurance also reduce the burden of losses to the
entrepreneurship.
It gives the entrepreneur the confidence and
provides him the security needed to venture into uncertain areas.
1.6 LIMITATION OF THE STUDY
This research work has categorically centered this
area of insurance such as:
(a) The usefulness and purpose of insurance company in
our economy.
(b)To see relationship between industry and other
financial institutions.
(c) To create general awareness in the mind of the
people.
(d)To know in which ways insurance company contributes
to the economy.
1.7 DEFINITIONS OF TERMS
Endorsement:
It is a subsequent term or condition attached to a policy which has the effect
of modifying the terms of policy by either restricting, or extending the cover
granted by the general policy form. Endorsements have the same effect as the
policies to which they are attached.
It is
used to limit the issues liable and they are also used for nothing changes in
the subject matter of insurance and changes of interest.
Certification of
insurance: These are document
issued by the insurance to the issued eyes of the law, a policy have no effect
unless and until there is delivery by the insurer to the person by when the
policy is affected.
The certificate must be in prescribed form. It is of
no effect until is a delivered form the insurance to the insured.
Ratification: If the policyholder found there are errors in the
policy e.g. property many have been omitted. Some insured document’s man is
incorrect.
To
protect him, such policy should immediately be returned to, in order to rectify
their errors. This is known as ratification.
Cover note: A cover note is a temporary policy document and it
is usually issued pending the preparation a limited number of the days ranging
from 15 to 30 days. A motor cover note also fulfill the function of a temporary
certificate. The insurer has the right to cancel the over note within the
period that is in force, but they must give the insured at least 24 hours
notice. Before a cover note could be binding on insurer it must be insured by
only authorized officially or agent of the company.
Proposal form: This is the form upon which the insured
communication his/her wisher to the insurer. The offers is submitted on a
purposed form drawn up by the insure which contains series of standard question
asking the proposal for information from which the insurer is able to make a
proper assessment of the risk. Many insurer accept or reject the risk. If the
insurer accept the risk, the contract becomes binding on the proposal for occupied
on important position in the practices of insurance.
The
proposal form is the first documentary record of the nature of transaction
between the parties. The use if standard proposal form enable insurer to
consider the application accurately and speedily so that the proposal obtain a
quick decision.
Slip: This is very common. In marine insurance, the slips
contain an abbreviated description of the risk. The Coyote usually used
abbreviations, which are familiar only to this (Lodes specialist).
Claims form: It is issued out by the insurance to the incurred
of policyholder wherever it becomes necessary for information from which the
insurance is able to make a proper assessment of the claim. The settlement of
claim is one of the claims. The settlement of claim is one of the principle
functions of insurance company.
Premium: It is a regular sum of many that is payable to an
insurance company for an insurance policy.
Policy
documents: This is the printed
document, which contains the term of the insurance contract. It is the evidence
of the contract arising groom the agreement reached by the parties not the
control itself. The insured should scrutinize the wording to ensure that it
cover the risk he originally proposed. The importance of the policy lies in the
fact that in the event of any disputes arising as regards the terms of the
contract this can only be settle by referring ambiguities they will be found by
the by the provision, of the policy.
In insurance company normally use as standard
printed form of policy in most classes of insurance.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment