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ABSTRACT
The study examines implementing compulsory employers liability insurance in Nigeria the challenges. The main purpose of this study is to examine the challenges of implementing compulsory employer’s liability insurance in Nigeria. The specific objectives are to find out the meaning of employer’s liability insurance in insurance contract, to determine the extent to which industries and business have sufficient information about employer’s liability insurance, to examine the challenges faces in marketing employer’s liability insurance product, to find out the solution to the challenges of marketing liability insurance product in a developing economy (like Nigeria). the sample technique adopted is judgmental sampling techniques, thus, (30) insurance practitioners were selected from the companies operating in Rivers State and representing the sample size for the study, and the respondents for this study. Findings revealed that there are no challenges of marketing employers liability insurance product. based on the findings of the study summary, conclusion and recommendations are made that insurance company should work more in their marketing department by advertising their product in the way of creating awareness to the public, there should be standardization of insurance cover on any liability that may be incurred, the insurance company should work on their agent, because most of their agent make the insurance companies to look as if they are fraudulent why they are not, their should be an information from the internet and any other side in other to update their product and service.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
some employers are required by the law to insure against liability for injury or disease to their employees arising out of their employment. This guide is intended to help you to understand what is required. It is not a legal (Compulsory Insurance) Act 1969. A brief guide for employer’s interpretation of the Employers’ Liability (Compulsory Insurance) Act and it has no formal legal status.
We should know that some years after the launch of the six compulsory insurance policies nationwide, insurance industry operators are still grappling with the enforcement.
Indeed, is still very far for us to realized the objective, which is to ensure that Nigerians are compelled by law enforcement agents to patronise these compulsory insurance policies with the overall objective of getting more Nigerians into insurance net and increase the industry’s premium income as well as the its contribution to the Gross Domestic product of the economy.
The compulsory insurance policies are those classes of insurance made compulsory by law, with the objective of providing protection to third parties and the general public.
Employer’s liability insurance has gained prominence in the years back. Most disputes involving injuries sustained by third parties are governed by the rules of responsibility.
Employer’s Liability or Group Life Insurance requires that all employers of labour with more than three employees are require provide insurance cover for them as required by the Pension Reform Act 2004.
The penalty for non-compliance with this law is N250,000, record of conviction, and in addition the place of business may be sealed up.
The concept that deals with the economic consequences of transferring risk, buying insurance protection constitutes and important element in risk management. Insurance implied an agreement between the insured who pays a premium and the insurer promises to reimburse the insured for financial loss incurred for specified risks.
1.2 STATEMENT OF THE PROBLEM
Most problems that the employers’ have is that they did not have any information about employers liability insurance companies and do not provide product liability insurance for big part of their products.
Most insurance companies offer “employer liability insurance”, while those companies which do not offer this product examined that their staff had no information for the existence of this product.
70% of business have sufficient information about the product “employers liability insurance” while 30% of them do not have enough information regardless of which media are reporting every day for products that are dangerous and which should be provided.
And the level of this information is very small for the majority of industries or business owners
and many more split on another section and the rest have no information at all.
From the survey it result that more of companies have less information for the “employer’s liability insurance”. But considering that the law itself has many shortcomings in the provision of employer’s liability and employers protection, companies do not view important to considering how many industries that currently exist.
1.3 OBJECTIVE OF THE STUDY
The main of the study is to examine the challenges of implementing compulsory employers liability insurance in Nigeria. The specific objectives are as follows:
- To find out the meaning of employer’s liability insurance in insurance contract.
- To determine the extent to which industries and business have sufficient information about employer’s liability insurance?
- To examine the challenges faces in marketing employer’s liability insurance product.
- To find out the solution to the challenges of marketing liability insurance product in a developing economy (like Nigeria).
RESEARCH QUESTION
- What is employer’s liability insurance in insurance contract?
- What is the extent to which industries and business have sufficient information about employer’s liability insurance?
- What are the challenges faces in marketing employer’s liability insurance product?
- Can there be solution to the challenges of marketing liability insurance product in a developing economy (like Nigeria)?
1.5 RESEARCH HYPOTHESES
H0: There are challenges in implementing employer’s liability insurance product.
H1: There are no challenges implementing employers liability insurance contract.
1.6 SCOPE OF THE STUDY
This study is intended to cover selected insurance firm operating in Port Harcourt and also it will cover implementing compulsory insurance in Nigeria: the challenges.
1.7 SIGNIFICANCE OF THE STUDY
The study is focused on the challenges of implementing employer’s liability insurance product in insurance contract. This study will be beneficial to the public, business and insurance companies in the society that lack knowledge about the challenge that is faced in implementing employer’s liability insurance contract and to know the reason why most people had no information for the existences of this product.
This study is also intended to provide yardstick for underwriters, insures, companies managers in Nigeria to improve on the level of their marketing or business and many of them have no enough information regardless of which media are reporting every day for risk that are dangerous and which should be provided, more split on another section and the rest have no information at all.
Researchers may be interested on the subject matters challenges of marketing liability insurance product.
1.8 LIMITATION OF THE STUDY
The most limiting factors I encountered in course of carrying out this research work was sourcing of material. It was a difficult task due to the fact that some material were not available at the time of writing, lack of finance and also discouragement from people since there was no available material for this project topic.
1.9 DEFINITION OF TERMS
EMPLOYER’S: An employer is a person or institution that hires employees or workers. Employers offer wages or a salary to the workers in exchange for the worker’s work or labor. One speaks of wages if the employee is paid by the hour and of salary if he is paid a set rate per pay period.
MARKETING: It can be defined as all human activities directed at satisfying all human needs and want through exchanges process.
CHALLENGES: It refers to a difficult task especially one that the person making the attempt finds more enjoyable because of that difficulty.
LIABILITY: Liability can be defined as the insurance policy that provides cover for the insured against this legal liability to others.
INSURANCE: Insurance is defined as an arrangement by which an insured transfers his risk (uncertain tendency to loss) to the insurer at an adequate fee called premium, on the promise that the insured shall be unverified or compensated upon the occurrence of the insured event.
CONTRACT: Contract can be defined in insurance terms as the legal agreement between two parties the insured and the insurer, that the insurer indemnifies the insured at the time of loss occurrence.
PRODUCT: Product can be defined as anything that is capable of satisfying human needs and want.