ABSTRACT
In the past, insurance companies hardly thought of how best to manage genuine claims and this led to the creation of a bad image for the insurance industry. An increasing number of insurance companies in recent years coupled with the declining purchase of insurance policies has forced companies to work on better methods of managing claims.
I delved into this study in order to aid readers identify some of the problems militating against adequate settlement of claims. The data used for this research was carefully collected through extensive field work and the instrument used in collecting the data were questionnaires.
The research was carried out in the Lagos metropolis alone where most of the insurance companies have their head offices. The research was however not easy as I encountered a few problems in collecting data.
Four hypotheses were formulated and were treated with chi-square method, all tests were conducted at five percent level of significance. Two hypotheses were accepted while two were rejected based on the findings of the study. It was found that over fifty percent of insurance claims presented are fraudulent in their nature. It has also found that it takes an insurer up to five months or more to settle a reported claim. After due investigation, it was also found that the insured’s attitude during the period of claim settlement has no effect on claim settlements.
TABLE OF CONTENTS
CONTENTS PAGE
Title/Cover page i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Abstract vi
Table of contents vii
CHAPTER ONE
INTRODUCTION
Background of the Study 1
Statement of the Problem 2
Aim & objectives of the study 4
Scope of the study 5
Research questions 7
Significance of the study 7
Limitations of the study 8
Basic assumptions 8
Definition of terms 9
CHAPTER TWO
LITERATURE REVIEW
Introduction 11
General review of existing literature on the impacts of claim
settlement on profitability in the insurance industry 11
Classes of Insurance 12
Principles of Insurance 14
The image of claims in the insurance industry 15
Notification and investigation of claims 16
Claims settlement procedure 16
Essential elements for a successful claim 19
Conditions to be satisfied for a successful claim 21
Methods of claim settlement 26
Impediments to prompt and equitable claims settlement 27
Overview, regulatory and supervisory framework of life insurance in Nigeria 29
Problems affecting claim settlement in Nigeria 31
Insurance claims fraud 32
Claims administration and E-commerce 33
The outsourcing of claims services 33
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction 34
Research Design 34
Research Hypothesis 35
Study Population 36
Sample size and technique 36
Data collection and Instrumentation 37
Method of data analysis 38
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
Introduction 39
Analysis of questionnaire A (Administered on the public) 39
Analysis of questionnaire B (Administered on staff of insurance claims department) 47
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
Summary 51
Conclusion 52
Recommendations 53
References 56
Sample of questionnaire A 58
Sample of questionnaire B
