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This study evaluates the role of Insurance in Road Traffic Accident Prevention in Nigeria. The main objective of the study is to determine the role of insurance in road accident. Preventing other objectives are to determine the extent of road accident in Nigeria. To ex-ray the roles insurance play in preventing road accident in Nigeria and to determine the extent insurance role can prevent road accident in Nigeria. The research design used was survey design and descriptive method of data collection, Data was collected for the purpose of the study via primary and secondary sources. Questionnaires were administered to elicit information for the state hypothesis the answers gotten were analyzed in tables. Hypothesis stated earlier in chapter one was tested in chapter four for its validity using the chi-square statistical tools. the study is revealed that the survival and existence of road users depend on the effective participation of insurance in preventing road accident Finally, the study was summarized, concluded  and recommendations were made as follows: Insurers should grant insured drivers incentives if they make use of safety equipment, insurers should be flexible in their decision making regarding to discount far safety measurers, government should do public enlightenment for drivers through the National Union of Road Transport Workers (NURTW) and federal road safety Commission (FRSC).





Road accidents are global public concern across the world, an estimate of 1.2million  people are killed through road accident each year and up to 50 million people injured in the UK, Improvement in road safety and vehicle design have contributed to a decrease in the  level of road accident in the recent years. Road accident occurs when a vehicle collides with another vehicle pedestrian, anima, road debris or other stationary obstruction such as tree or utility pole, this may lead to death, injury or disability. Road traffic accident disproportionately affectscertain population group. For instance, males and those living in more developed area are most likely to be involved in road accident, children and older people also experience high rates of pedestrians injury, than other age group. The use of alcohol or drugs among drivers increase the risk of road accident.

Furthermore alcohol use can increase the severity of injuries sustained from a road accident due to difference in traffic and pedestrian patterns, population densities and road layouts, the frequency and type of accident can also depend on whether an area is urban city centre or urban tringe (sub-urban) or rural(country side).

Road accidents are preventable and the department of transport “A Safar Way” in consultation document has proposed National Target to reduce road deaths and serious injuries by at least 33% by 2020. A wide variety of intervention have been implemented both in the UK and elsewhere to prevent or reduce the occurrence of accident on the road and the severity injuries sustained.

Insurance as a risk transfer mechanism of uncertain tendencies, events, and financial losses can be efficient. The impact of insurance in road accident is very vital that is why “Blunden and Thirwell (2010) describe insurance as a contract of fortunate which depends on the occurrence of something that is not for seen and over which the insured of sensibly has no control.

Insurance as a risk transfer mechanism that facilitate shifting the cost of a risk away from insured who runs it to an external part (insurer) in exchange for payment called premium (Marshall 2001) Insurance is a financial contract is a way of dealing with consequences of risk perceived as external.

Insurance work base on the law of large number in the pool. This pool consist of different types of risk which premium paid by all members are use to settle the unfortunate one’s. So far the road users should embrace and patronize insurance because the relief fair from the mind of the individual and till it with confidence.

Nigeria has the status of developing country where road facilities are grossly inadequate to carter for the teeming population of road users. The discovery of oil in Nigeria came with its own problems. The prior to the oil boom in Nigeria road accidents were rare. This undoubtedly calls for improved road network accessibility. Roads were therefore built albeit without dive attention to standard.

Consequently the road grew to be a death trap for Nigeria citizens and road users.


Road accident have become a normal and re-occurring phenomenon in Nigeria which constitute a menace in modern times. Although both the develop and developing nations of the world have suffered from varying degrees of road accidents. The developing countries clearly dominate with Nigeria having second highest rate of road accident among 193 nations of the world. Deaths from reckless driving are the third leading cause of death in Nigeria.

In 2012, 142 people had died from reported motor accident and so many others. The problems of this road accident depends on the following factors which can be broadly divided into

  1. Vehicle operation or driver factors
  2. Vehicle factor

iii. Road pavement condition factor

  1. Environment factor

Vehicle Factor

This include speed and indiscriminate use of sirens and rink driving and use of drugs all this can increase both the risk of a traffic accident and likelihood that death or serious injury will result.

The use of sirens by private or political public office holders has been reported to cause a lot of road traffic accident in Nigeria. Recently on 12 November 2013 around 10.30am a convoy of the kogi state governor and a Toyota bus conveying key members of the academic staff Union of Universities (ASUU) to a meeting in Kano was involved in a total accident in Lokoja which took the life of “Professor Festus Iyayi”. Formal ASUU National President. Which may sustain injuries.

Vehicle factor:

Vehicle components, design, broke system, body and tyres, light and engine. The hearts of every vehicle is the engine which is a sub-system which is responsible for bring other parts into motion whose sudden failure on a highway is more likely to cause accident if the volume of traffic is sufficiently high at that point in time even when traffic is reasonably law, mismanagement of the failure by an experienced driver could cause road traffic accident.


The main aim of this research work is to determined the role of insurance in road accident prevention other objectives are as follows.

  1. To examine the problem faced by the insurance in road accident prevention.
  2. To determined the impact of insurance on road accident prevention.
  3. To examine government intervention in road rehabilitation in order to minimize road accident event.


This the following research question are formular to guide researcher:

  1. To examine the problems encounter in road accident prevention
  2. What are the impact of insurance on road accident prevention.
  3. To what extent does insurance companies settle their valid claims on road accident prevention?
  4. To what limit does government intervene in road rehabilitation in other to prevent road accident occurrences?


Ho: The role of insurance in preventing road accident in Nigeria is not effective.

H1: The role of insurance in preventing road accident in Nigeria is effective.


This is deliberately on the role of insurance in road accident prevention in Nigeria. The study concerned on Nigeria but due to its vast geographical nature of the country, the study is conducted with the respect of some insurance firms in Rivers State compressing mutual insurance like IGT, and Zenith NICON Nigeria plc Port Harcourt.


Road accident has set back some families back to square one. By taking away their bread winner life, where by keeping some dependents ones in a miserable state. This reason brought about setting measures in readdressing that situation. To examine insurance as a risk transfer mechanism, this is the  contract that exist between parties (insured) and the (insurer). Here the insured transfer his risk (known as uncertain tendency to losses) the insurer(insurance firm) at an adequate fee called premium on promise that if the losses occur the insured shall be settle or identified, compensate upon the occurrences  of the insured events. in life insurance if the policy holders (bread winners) dies by insured peril the life office pays a state sum amount of money to its beneficiaries or left behind.

Insurance also investigate the statistic of the road accident in Nigeria for the past years. This is mostly done by actuaries in insurance industry to about mortality rate and mobility rate etc.

To x-ray the roles of insurance in preventing road accident in Nigeria. Insurer play an important roles in the accident prevention because they build up in the course of their experience a fund to useful knowledge that can be applied to practice. Insurers  sometime invites polices to address  meeting of all members of local insurance institute on how to make all sections interest security conscious. They also include the motorist to exercise greater care than otherwise would or to out wit the would be defaulters. In addition, the insurance make recommendations to make the task of the thief more difficult and time consulting exercise.


The most limiting factors encountered in the course of caring out this research work was inadequate fund in other to go deeper in my research work. Also the time limit or duration required for competition as too shortand encouraging. Availability of the material was a very difficult task due to the fact that some material available at the time of writing.  It was a very stressful to see the material online, I really appreciate him for perfectingwhat he has started.

FINANCIALLY CONSTRAINT: this wanted to be set back in caring out research from visiting some vital organization which need to contribute to this work.

TIME CONSTRAINT: the time given in this research combined with, the time for other academicals work. So it limit the cruel point which would have been added to this work.

LACK OF RELEVANT MATERIAL: this also wanted to bring failure in this work, it was so difficult to get access to valid and rightful information but at least did not bring it to down the nature and quality of this work was been made available at the time of need.


ROAD: this means any public high ray or access road been maintain by government which the public have access.

ACCIDENT: this is an unexpected event, not intend or designed. It is an unforeseen event or circumstance that its occurrence may lead to loss or damage.

PREMIUM: this is an amount of money paid by the insured to the insurer for the insurance cover provided in the policy

COMPENSATION: this is the sum insured that is been paid by the office to the beneficiaries of the death life of insure person or policy holder.


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