Motor Insurance Practice in Nigeria
CHAPTER ONE
General Study Objective
The general objective of the study is to carry out an assessment of efficiency of motor insurance policy in Nigeria with a case study of Nigeria insurance company.
Research specific objectives
- To evaluate the efficiency of motor insurance policy in Nigeria
- To benchmark terms and conditions applied in compressive and third part Moto insurance
- To identify challenges relating to motor insurance policies in Nigeria insurance
CHAPTER TWO
REVIEW OF LITERATURE
Introduction
Chapter two is the theoretical overview and it states the literatures in which the study focused. The role of the literature review is to expose the researcher to the problem he/she is addressing. The researcher is familiarized more about the history of the problem, how it began and the consequences related to the problem, how other researchers have addressed the problem, the theories that have been formulated relating to the problem and the gaps that exist which are yet to be bridged in order to solve the problem.
Theoretical Definition
The theoretical definition gives the meaning of the word in terms of a specific Despines. This study assumes both knowledge and acceptance of the study it depends on. According to Patrick (2007) Theoretical definitions are common in scientific contexts, where theories tend to be precisely defined and results are more widely accepted as correct.
Insurance
Insurance is simply a devise whereby many people contribute to a pool, so that a few who suffer a loss may be compensated (Sebiyam, 2005). Insurance is a service industry; it is there to serve the needs of its customers and these needs do change. The underlying service is that of providing a risk transfer mechanism, but the nature of the risks for which this may be necessary will alter as time passes. New products, processes, and industrial systems all bring new form of risk for which customers, be they corporate or private, will need protection (Anderson and Brown, 2005). In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment.
Motor Insurance
Vehicle insurance is generally considered a fixed cost with respect to vehicle use (Litman, 2010).A driver faces a potential economic loss if his car is damaged. A larger possible economic risk exists with respect to potential damages a driver might have to pay if he injures a third party in a car accident for which he is responsible (Anderson and Brown, 2005). “Every car owner in Tanzania needs to be a consumer of insurance services by virtue of the law which stipulates that driving without insurance is punishable by fines, disqualification and even up to one year imprisonment” If you drive your vehicle on the road, or leave it parked in the street, the law says that you must have motor insurance. It is a criminal offence not to insure your motor vehicle (http://adviceguide.org.ukc_motor_insurance.pdf). In non-life category, other than car insurance, no other insurance is mandatory for the customers (Goswami, 2007).
CHAPTER THREE
METHODOLOGY OF THE STUDY
Introduction
This section presents the methodology of the study detailing the research design, study area, study population, study sample, sampling techniques, data collection methods, validation of instruments, data analysis plan as well as ethnical consideration.
Research Design
Kothari (2004) noted that research design is used to restructure the research by showing how the major parts of the research projects such as sample or group, work together in addressing research questions. The study used explanatory and descriptive design. Robson (2002) in Saunders et. al. (2007) defined exploratory design as evaluable means of identifying and recording a phenomenon and process or system. This design is mainly concerned with qualitative methodologies while descriptive research design is generally based on quantitative methodologies by measuring the relationship between variables.
An exploratory research design is conducted when little is known about the phenomenon that is under study and when the problem is difficult to limit with limited restriction on the topic (Kothari, 2004). Exploratory research is aimed at gathering as much information as possible through the use of different sources and through stating the purpose and criteria to judge the exploration successfully (Strydom, 2005). This design was used to understand the efficiency of motor insurance policies in NICON so as to bring out/disclose the challenges associate with these policies which are not well understood. Descriptive research design was also used in the study because it measures variables by asking people questions and then examine the relationship among variables. Therefore, the use of descriptive design was useful in finding relationship (similarities and differences) between comprehensive and third part motor insurance policies.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION
Introduction
Analysis of the data is very important part of any research. The quality of data collected matters, but what matters more is the interpretation of that data. This chapter deals with presentation of data analysis and discussions of the findings. Firstly, data of all the respondents to the interview were compared to give better understanding of the situation. Then, the comparison was used to achieve the objectives of the study by evaluating them on the basis of secondary data. Also primary data from questionnaire were numerically analyzed. Unique personal quotes from respondents were taken as a basis of comparison of the different views to consolidate it into finding of the research. To begin with researcher discussed the background/demographic information of the respondents.
CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
Introduction
This chapter provides conclusions and recommendations of the main findings presented in chapter four by relating them to the objectives of the study while reflecting on the methodologies used to obtain and analyze data. From the findings, conclusions were drawn and recommendations were made. The chapter ends with identifying areas for further research.
Summary and Conclusion of the Study
The study aimed at assessing the efficiency of motor insurance policy in Nigeria with a case study of Nigeria insurance company. Accordingly the study posed three research questions to be answered and the questions were: how efficiently is the motor insurance policy in Nigeria? What is the difference between the terms and conditions of comprehensive and third part insurance policies? What are the challenges relating to motor insurance policies in Nigeria insurance company?
In answering the first question, the study used four dimension of the service quality which was responsiveness, assurance, tangibility and reliability of the insurance policies. The results obtained regarding thereof were that; NICON’s staff have been more responsive toward comprehensive policy than third part policy. Whereby, analysis of information obtained from motor insurance policy holder of NICON regarding responsiveness of the NICON’s staff on the motor insurance policies show that the staff had comparative high effectiveness in responding towards the demands of comprehensive policy holder than third part policy holders to whom the staff had moderate effectiveness on responding towards their needs. On the other hand the study found that NICON’s staffs were more effective in making third part insurance policy tangible-for the consumers to be aware and develop positive perception toward the service. It was also reported that third part motor insurance service was mostly advertised and promoted compare to the comprehensive insurance policy. Concerning assurance or quality control of the service and reliability of the services, it was found that the NICON’s staffs have put and have been controlling the quality of both third part and comprehensive insurance services at almost equal level. But the extent of quality control (assurance of the service) as well as reliability of the staff toward these services was rated averagely and therefore interpreted that NICON has moderate effectiveness in service assurance/quality control and trustworthiness on the service.
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