CHAPTER ONE

INTRODUTION

1.1             Background of the Study

The research is to be conducted on “The impact of insurance service on business survival in Niger Insurance Plc Kaduna. Insurance is meanly concerned with provision of financial security or protection of industries, institution and individuals against their economic losses, since they have content with the risk and uncertainties associated with business properties and life.

Therefore, Insurance creates awareness for the society since they are faced with a lot of risk such as accident, job termination, fire-outbreak, thief, flood, death. Insurance exists in order to ensure the survival of the business, there by fastening economic development and growth all over the world. Insurance is actively wolves in the protection of investment by providing cover against risk which may disrupt project and encourage individuals and organization to harvest good result. The Insurance insuring Public (Individual’s corporate organization and Government) in the economic transfer risks associated with the lives and economic transfer risks associated with the lives and economic activities to ensure companies, they are providing a means of protecting and conserving the wealth of the Nation.

1.2             Statement of the Problem

Insurance exists in order to ensure the survival of the business, but in these modern days, the rate of unawareness about insurance policies in Nigeria is very low, compared to the developed Nation. The Nigerians are under insured because Insurance companies do not fully appreciate the importance of Insurance marketing in the Security Sector and these are due to adequate training of personnel within and outside the organization that will convince the General Public. Another poor situation of the industry is the insufficient advertisement placement to ensure public enlightenment of Insurance policies. Some Staff never exhibits their ability and technical know-how, because of lack of motivation especially in the Marketing department. Also these above mention are also what Niger Insurance plc faces.

1.3             Objectives f the Study

I.                                           To evaluate the impact of Insurance on business survival in Nigeria

II.                                        To determine various Insurance policy used in safe guiding business

III.             To identify the problem militating against Insurance firms to proffer solutions to the identified problems.

1.4             Research Questions

i.                   How does insurance affects business survival in Nigeria?

ii.                 What is the various Insurance policy used in safe guiding business?

iii.              What are the problems militating against Insurance firm?

iv.               How can these problems be overcome?

1.5             Significance of the Research

The study will be beneficial to Insurance companies as well as business enterprise especially as they utilize the findings of the study to enhance their businesses. The study will also contribute to the existing knowledge in Insurance. It will also be a useful material for study who may wish to use the research as a springboard to undertake their own research as well as other researchers who may wish to make further research on the subject matter.

1.6             Scope of the Study

The study covers an empirical examination of the impact of Insurance on the survival of business enterprise. Data collection would be restricted to Niger Insurance Company Kaduna. The study covers a time from 2006-2012.

1.7             Limitation of the Study

The study is restricted to Niger Insurance Plc, Kaduna as such, it is not certain if the same finding will be obtain if the research is conducted on another study area other limitation arise from the fact that the questionnaire as well as the survey method constitute the research instrument as well as a research design respectfully, it is not certain if other kind of instrument and design will yield the same result.

Non challant attitude constitute of respondent as well as their on cooperative attitude constitute a great limitation of their study.

1.8             Definition of Term

Insurance: Undertaking by a company, business or individual to             provide safe against loss in return for regular payment.

Insurance business: The process of buying and selling of Insurance services.

Agent: He is the person who acts on behalf of another in bringing contractual relationship with third party.

Brokers: The brokers are highly skilled professionals who offer specialist advice to buyer of Insurance and as is in the placement of risk with Insurers of rebuke

Proximate cause: this is used to determine whether the loss sustained by the insured or was caused by the risk insured against.

Life Assurance: protection against the loss of future income which may arise as a result of the premature death of income-producer.

Cover Note: This is a temporary “cover” given to the insured by the Insurer in lieu of the policy. It is operational for thirty days but may be extended if the need arises.

Proposal Form: This is the printed form which the prospective insured fills out stating the risks which He want covered and providing the necessary information.

Insurer: Is the insurance company which is covering a particular risk.

Insured: Is the policy holder is the person who has an insurable interest in the subject of Insurance.

Underwriting: means undertaking to identify an insured for a risk or part of a risk.

Clouse: this is the legal aspect of law that is backing the practice of an Insurance act or policies.

Principle of Utmost Good Faith: This refers to as the Insurance business that boom on trust, any iota or lie or deceit refuses the confidence and discourage the growth of the business.

Social Security: This is a package that you have confidence to your future in terms of any incident assurance.    

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