THE IMPACT OF MOTOR INSURANCE POLICY ON THE GROWTH AND DEVELOPMENT OF THE ECONOMY
This research work titled “The impact of motor insurance policy on the growth and development of the economy” Nigeria motorist are not embracing motor insurance policies and one of the objectives are to know why Nigeria motorist embrace motor insurance policies, and the scope of the study is NICON insurance motor Department, The information for the study was collected using primary and secondary methods of data collection. For the primary data collection, questionnaires, personal observations and oral interviews were used while existing literature relevant to the topic was consulted for the secondary data. The researcher used chi-square statistical model to analyze the data. The researcher gave a summary of the findings that Nigeria motorist are not embracing motor insurance policies and one of the recommendation is that people should know the reason why they are not aware of the compensation in motor insurance policies.
1.1 Background of the Study
Before now, motorist, were at liberty to drive their cars on the public highways without any form of insurance. However, as the number of cars multiply on the highways rate of accident injured and death also multiple. Hence, the need for motor insurance.
The first country that gave a lead in this direction was the great Britain. Other countries have the Traffic Act at 1930, introduced a compulsory insurance. The Act made it an offence for anyone to use or permit the use of a meter vehicle on a read unless there is in force a policy of insurance covering the liability of the motorist against death or motor accident.
The idea of compulsory insurance was recognized quite early in west Africa and British legislation on the subject was extended to the four west African British colonies, Nigeria, Gold Coast, Sierra Leone and Gambia, each of these territories now has it own specific legislation on this subject.
Modern insurance was introduced in Nigeria by European trading companies which establish trading post in Nigeria and their companies were appointed agent for insurance business by British companies in London Later, Nigeria traders and merchant of substantial status where given power to secure insurance business issues cover meters mostly on cargo and assistance in settlement of claim.
As a result of this progress, Royal exchange Assurance branch office was established in Nigeria in the year 1921 and this company dominated insurance business for almost thirty years before the establishment of other companies such as provincial insurance company, nor which union, fire insurance company and Nigeria General insurance company limited to mention but a few – the incorporation of Nigeria into the Board Traffic Act by the British Parharment in 1945 imposed a statutory obligation on the users of motor vehicle to provide security against their legal liability for causing death of or bodily injury to the third parties.
Thus, the study is meant to evaluate the impact of motor insurance policies on the growth and development of the economy. Looking of NICON insurance company as a study.
1.2 Statement of the Problems
1. Nigerian motorist are not embracing motor insurance policies.
2. People are not aware of the compensation in motor insurance policies.
3. Nigerian motor and third parties have not actually felt the impact motor insurance policies.
1.3 Objective of the Study
The following are the objective of the study.
1. To know why Nigeria motorist embraced motor insurance policies.
2. To create awareness of the compensation motor insurance policies.
3. To ensure that the Nigeria motorist and third parties actually felt impact of motor insurance policies.
1.4 Research Question
1. Have Nigeria motorist been embracing motor insurance policies.
2. Are people aware of the compensation on motor policies.
3. Have Nigeria motorist and third parties actually felt the impact of motor insurance policies.
1.5 Research Hypothesis
Hi: Nigeria motorist have been embracing motor insurance policies.