AN EVALUATION OF STRATEGIES IN AUTOMOBILE PORTFOLIO IN NIGERIA

 (A SURVEY OF SELECTED INSURANCE COMPANIES IN PORT HARCOURT)

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ABSTRACT

This research work centered on the Evaluation of claim management strategies in automobile risk in Nigeria. To achieve the objective of study, we used pie-chart to analyze the research questions. The data analyzed were extracted from primary and secondary sources through personal interviews, use of questionnaire, books and other materials from different authors. The findings revealed that the ability and competence of an insurance company cannot be truly known or assessed not until a claim situation arises. It was recommended that Government should set regulatory policy to protect the prospect of insurance industry as many claims are not quickly redeemed, and that insured should follow legal procedures involving automobile claims. Premium should be paid on due dates, claim management ethic should be followed religiously and that all insured should be given proper orientation during the of negotiation, when contract is established and also during renewal.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The insurance industry is so important that its roles become very necessary at the point of despair of other sectors. It not only relied from worries which losses can cause but also enhanced development and insurance.

Despite the investment important of the insurance industry, there still exist a measurable set back which arises as a problem of claim management. Claim according to the Oxford advanced Learners dictionary 6th is the right to ask or demand for something which you believe is your legal right to own or to have it.

As insured, it remains your legal right to be indemnify for any auto damage lost under the insurance contract. But due to inexperience on the side of the insurance industry to really ascertain he cause, or probably the problem of delay in providing useful solutions, the perception of the insurance industry before the general public becomes an issue capable of denting the tree course of insurance.

The general pubic perception is that claims payment is a relief that resuscitates the victims and put them back into active economic life. And when the insurance industry cannot meet that demand it becomes a challenge to them in rebuking the image of the industry insurance before the eyes of the general public. They (automobile insured’s) believes that patronage depends on pre-historical financial facts gathered which meets their needs and create utility for the money.

According to Skinner (2007) whenever the right to claim is hindered for justifiable reasons, it impairs the foundation upon which the insurance industry is built.

It is the light of the foreging that this research work is conducted to not only highlight the need for improve claim management strategies, but to show the general public that the insurance industry is still in the business of indemnifying for losses suffered by the insured especially in motor insurance.

1.2 STATEMENT OF THE PROBLEM

The world is becoming global by each second. More hazardous investigations are discovered. Therefore the need for insurance is inevitable. Individuals and businesses are in the vage of securing their stand and remaining in the competitor global market were risk of failure is the order of the day. But it becomes a problem when an insured businesses or individual cannot have access to claim. Many reasons have been given to insurance industry as a cause of it. And as such the perception of the public about the insurance industry dainted. The problem, this research work will try to give solution to is to identify the possible reasons behind the poor claim management strategy of an insurance industry and how it affect the reputation of the industries.

1.3 OBJECTIVE OF THE STUDY

  1. To X-Ray motor insurance portfolio.
  2. To know the concept of claim management strategy in motor insurance.
  3. To appreciate factor that influence the payment of claims.
  4. To appraise losses in motor insurance that may give raise to claim and it implication to the insurance industry at large.
  5. To evaluate the liability of claims in automobile insurance.

1.4 SIGNIFICANCE OF THE STUDY

Apart from the contribution to the existing body of knowledge in this area of study, this work will be relevant to those who have themselves to reading which include researcher in the field of insurance and administrative studies of knowledge increment application.

Also, the result and recommendation of this study will enable the insurance industry to formulate efficient and effective measures that will increase the relevance of claim management strategy in the face of the general public.

It will also inform the general public of their right and privileges as enshrined in the insurance laws and policies. Finally, the study will help in creating conductive atmosphere for effective business where the insurance company serves the customers better; services are made better and Nigerian as a nation gain more from it.

1.5 RESEARCH QUESTION

The research question for this study are:

Does insurer’s pay claims?

Is claim management strategy effective insurance industry?

Is there any relationship between claim management and insurance patronage?

Can claims management strategy be achieved by the effort of all the worker in an insurance industry?

Is claim management strategy liable?

1.6 SCOPE OF THE STUDY

This work is centered on an evaluation of claims management strategies in automobile portfolio in Nigeria. Here we shall consider the concept of claim management, meaning factors, influencing settlement of claims, barrier, it’s implication on the insurance industry. We shall also consider factors influencing claim management strategies in the insurance industry. Finally, we shall be looking in automobile portfolio.

1.7 DEFINITION OF TERMS

For clarity, some term needs to be defined

CLAIM: The right to something which is believed to be legally yours.

PERCEPTION: General view about something.

INSURANCE: A risk transfer mechanism where the individual or the business enterprise can shift some of the uncertainty of life into the should of others.

GAMBLING: A chance game where the winner takes all and leaves the loser nothing.

PREMIUM: The annual amounts paid by the insured to the insurance company with a consideration to indemnify him against any financial loss.

POLICY: It is contract of insurance between the insured and the insurer.

INSURED: The person who takes out the insurance with the company.

INSURER: The insurance company whom the risk is transferred to.

AVERAGE: Payment made in proportion to the sum insured.

PROPOSAL FORM: It enables the insurance company to decide whether or not to accept the risk.

 

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