Ensuring Positive Consumers Attitude Towards Insurance Contract In Nigeria A Study Of Igi Enugu State

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This project is designed to determine the attitude of the general public towards insurance contract in Nigeria. The topic to be discussed is “ensuring positive consumers attitude towards insurance contract in Nigeria. A study of IGI Enugu”. In chapter one of this work, I treated the introduction, significance of the study, statement of problems and definition of terms and also limitations of the study. In chapter two, I reviewed some related literature. Chapter three is the research design and methodology which focused on the method employed in the course of this work. It related to the type of sample method of collecting data, it also provide the types of data used and its sources. In chapter four, I presented the summary of findings and discussion. Finally, in chapter five I presented the conclusion and recommendations. Where I for saw the need of the insurance practitioner putting more efforts towards attracting the general public in adurring the important of insurance











Title page                                                                         ii

Certification                                                                     iii

Dedication                                                                       iv

Acknowledgement                                                            v

Table of content                                                               vi



1.1      Background of study                                                        1

1.2      Statement of the problem                                        6

1.3      Objective of study                                                    6

1.4      Research question                                                   7

1.5      Significance of the study                                          8

1.6      Scope of the study                                                   8

1.7      Limitation of the study                                             9

1.6      Definition of terms                                                   10

Reference                                                                         12



2.1      Meaning and purpose of insurance                         13

2.2      The insurance market                                              15

2.2.1The insurance market is up of the following            15

2.2.2The insurers                                                            16

2.2.3The insurance intermediaries                                  17

2.3      Classes of insurance contracts                                        17

2.3.1Marine insurance                                                    18

2.3.2Fire insurance                                                         18

2.3.3Life assurance business                                           19

2.3.4Accident insurance                                                  19

2.4      Factor affecting the insurance contract                    20

2.4.1Size and the distribution of population                   21

2.4.2National income                                                       22

2.4.3Market competition                                                  22

2.5      Consumers attitudes towards insurance contracts in

 Nigeria                                                                    23

2.5.1Religious effect                                                         24

2.5.2Social clubs and age grades                                     24

2.5.3Ignorant                                                                   25

2.5.4Claim procedure                                                      26

2.5.5Low standard of living                                              27

2.5.6Fire insurance                                                         27

2.5.7Motor insurance                                                      29

2.5.8Marine insurance                                                    30

2.6      Buyers/consumers behaviour.                                         31

2.7      Claims record                                                          32

2.8      Constraints of marketing insurance products          34

2.8.1 Problems of marketing insurance in Nigeria           35

2.8.2               Culture                                                                    35

2.8.3               Political                                                                    35

2.8.4               Economy                                                                  36

2.8.5               Educational  system                                                        36

2.9    Odds in marketing insurance products                     37

2.9.1               Quality of service /poor marketing                           37

2.9.2               Competition                                                             38

2.9.3               Financial stability                                                    38

2.9.4               Training                                                                   39

2.9.5               Fake operation                                                         39

2.9.6               Poor channel of distribution                                    39

2.10  Legal and regulatory constraints                              40

Reference                                                                  42


3.1      Research design and methodology                           43

3.2      Sources of data                                                        43

3.2.1Primary data                                                            43

3.2.2Secondary data                                                        43

3.3      Population of study                                                  44

3.4      Determination of sample size                                   44

3.5      Reliability of the study                                             45

CHAPTER FOUR            

Summary of findings and discussion                                      

4.1   Findings                                                                  46

4.2   Discussion                                                               64

CHAPTER FIVE             


5.1      Conclusion                                                              48

5.2      Recommendation                                                     49

Bibliography                                                            51

Appendix I                                                               53

Appendix II                                                              54





This research work will first look into insurance is all about; insurance as a risk management device is, therefore a contract to the economic well-being of man. It is also endemic in any society as a way of averting and ameliorating the financial consequences of misfortune has been engaging the attention of man at every age. Before the advent of the British Merchant in Nigeria, there was no organized insurance business as we know it today. There has been some existed traditional system of risk sharing, which could be described as crud or primitive forms of mutual and social insurance schemes. The extended family system, age-grade association, town union were some mutual insurance like schemes for showing benevolence to their members who had suffered some misfortunes such as death, ill-health, fire ravage or court case. Both the extended family system and clan or town union still exists in Nigeria today, but most of their insurance function ahs been taken over by an organized insurance system. Similarly, the age grade system still plays on important role in some parts of the country, especially in matters relating to moral development, but like the extended family system and clan unions, they no longer render any noticeable insurance servicers to their members. Then the determinant of every marketing is the ability of the producers to provide for the consumers the quality and quantity of goods that will satisfy then at affordable price, provided at accessible place. In event to provide these goods, the producer should consider and see the customer or clients as the “king”, this is because without the clients, there will be no insurance business.

According to Philip Kotlers, 1977:100, he said the fact that their customers clients as the case may be, are getting more educated and have better tools, such as the internets as the proposed to buy with more discrimination. Power has been passing from the manufactures to the distributors and now is passing to the customers I.e. “client”, therefore, the customer is the king. It is vital that markets ever before, continually strive to meet customers need because that is the only way they will succeed in this increasingly competitive market practice. In insurance practice the insures therefore, the insurers should strive to see that the needs of their insured is if the insured fail to their then, the insured attitude will change.

Insurance marketing consist of the buyer, the intermediaries and the sellers of the insurance policies. Individuals as well as co-operate organizations toward insurance. Contract is greatly influenced by customers attitudes. Apparently, the attitude of clients towards insurance service is a function of two broad group of factors namely, the controllable factors are bordering mainly on the usually marketing mix which comprises the element of insurance market namely product, planning, distribution channels, advertising and sales promotion.

In the contract of insurance, the insures will ensure that in the practice have to articulate the products, planning, distribution, channels, advertising and sales promotion in a such away that the insured attitude for the business will be enticing. For example an insurer that wants to boost the number of insured in motor insurance business will make sure that all the above mix are well put in place to meet the desires of the consumers.

According to Philip Kotter (1993), he said it is a combination of those controllable internal marketing variables, comprising the four Ps (4ps) which is the; price, place, product and promotion, which the firm uses to operate successfully within the marketing environment. The uncontrollable factor are socio-economic technological psychological, political and legal forces, outside the direct marketing of insurance. W.J Withrich (1989:102). Some social risk also contributed for the need of insurance cover. Theft, burglaries etc. has progressed tremendously during the centuries especially in the period of inflation. As a result of introduction to new business which brings about increase value and product line insurance contract in Nigeria has progressed tremendously as far as insurance is concerned, Nigeria are easily spurred into action only when they heard that insurable disaster has behave on some or others, in recent times there has been proliferation of social clubs, more of these clubs guarantee the payment of fixed sum of money to the deceased brothers or dependents, the deceased who was the members.

Experience shown that these clubs make such payments with reasonable dispatch on the death of their member, on the other hand, insurance payment condition stressed the satisfaction of certain legal requirement and hence the payment look for some time. The level of illiteracy is still high in Nigeria, this is itself couples with the per capita level also affects the consumer attitude toward insurance contract in Nigeria.




The problem associated to this research are as follows:-

1.          Non settlement of claims by insurance companies affect the attitude of the consumers.

2.          Ignorant of the general public on the important and benefit of insurance.

3.          Lack of professionals in insurance company that will help in fashioning out the market mix to marketing insurance product.

4.          The technical words used in drawing up insurance public.


The objective of the study is as follows:-

1.          To improve the settlement of claims by insurers.

2.          To provide a mechanism framework that will help in educating the general public on the benefit of insurance.

3.          To improve on the construction of policies with such words that not is confusion to the public.

4.          To portray insurance as a service capable of taking care of loss occasional by the insured and not like a social club.

5.          To improve on how to increase public awareness of insurance such that will be more informative.

1.4      Research question

The following research questions are formulated for the purpose of this research study:

1.  How does non settlement of claims by some insurance companies affects the attitudes of people?

2.  Does the general public know about the importance and the benefit insurance?

3.  How do you get the information about insurance contract or business.

4.  How does poor awareness of insurance affects the people attitude towards insurance contract?

5.  Can insurance as a service provide capable of taking care of losses occasionally by the insured.


The importance of this study is to ensure positive consumers attitudes toward insurance contract. Apart from this, there are other important attached to it, they are:

This study will be of immense help to the general public to employ a professional, such as broke that will guide the client according. It will also help the insurance company to observe the effects of non–settlement of claims. This study wine encourages the insurance companies to always use qualified personal “intermediaries” that wine guides the customers according to the norms or the contract. This project work wine be of important to the insured to suggest the best time and low to exercise his rights throughout the contract.


This research on the ensuring positive consumers attitudes towards insurance contract in Nigeria aught to have been carried out to cover all the nation, Nigeria, but due to some unforeseen circumstance or contingencies, the study will be concentrated on the IGI insurance company, Enugu in Enugu state.


The research work is limited only to the Nigerian consumers of insurance service and the insurance companies, because of its wide area of coverage, the following constraints abound and outside this may be classroom work. There are other study that help me in writing this project. The greatest limitation was that of financial   Inadequacy, this there fore affected my movement in terms of traveling to and some states like Imo, Abia, and Anambra state which I could not be able together some information needed for the study. The unco-operating attitude of some respondents imposed some problem to his research, it is known that many respondent are usually very reluctant in discussing some important information.





Contract: This is legal binding agreement between two parties, which must have quality of valid contract, for eg. Consideration, after an acceptance, capacity etc. which is traceable by law.

Policy: This is a guidance of insurance contract: it is also provided proof on the term of contract at insurance.

Insured: This is a party to the insurance contract who agree to pay small amount of money called premium so as to enable him to be entitled to receive indemnity or compensation whenever the risk insured against occur.

Risk: This is a chance of loss.

Insurers: This is the party to insurance company who access the risk of the insured to know whether to accept or not, if yes at what condition.

Indemnity: This is a method of putting the insured back to the financial position which he was before the risk occur.

Premium: This is a monetary payment that flows from the insured to the insurer so as to enable him to be entitled to receive indemnity if the risk insured against occur.

Claim: This is a way of bringing to the notice of the insurer or the insurance company about the occurrence of the risk which they insured against by the insured.

Insurance: Insurance is a safeguard against risk any device aimed at reducing the chance of a risk occurring, and when it happens reducing the extent of it’s damage and providing the affected persons with compensation is a form of insurance.

Agents: Agent is an intermediary who works according to the direction of his principal.


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Ensuring Positive Consumers Attitude Towards Insurance Contract In Nigeria A Study Of Igi Enugu State