CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the study
An attitude may be defined as a learned disposition to have in a consistently favorable or unfavorable way with respect to a given object. It position people into a frame of mind of liking or disliking things. It is acknowledged that people have attitudes towards almost everything religion, politics, clothes, music, food etc.
For instance the demand for insurance services in a state or country may be affected by the unique culture of the state to the extent of affecting the populations risk aversion (Douglas and Wildavski; 1982) note that religion historically has provided a strong source of cultural opposition to insurance services especially life insurance as many religious people believe that a reliance on life insurance results from a distrust of God’s protecting care.
But historically, some form of social insurance existed in Nigeria and Anambra State society long before the introduction of the modern insurance in Anambra State. The practice of means of providing cash donations, materials or sometimes organized collective labor to assist or communal association who suffer a hardship was the simplest form of social insurance.
The abysmal level of insurance culture in Anambra state has attracted researchers and practitioners alike. Insurance is a protection against risk and has been identified as a central fact of life in the rural area. Some of the challenges are lack of insurance culture by the people, low level of education, unemployment and marketing.
Therefore marketers of insurance services should formulate and implement relevant marketing strategies towards addressing the nonchalant attitude of Anamberains to insurance.
1.2 Statement of problems
A reasonable percentage of Anambra State is not very literate. This is one of the problems encountered by the insurance companies we have in Anambra State because insurance service are usually more appreciated in society where we have enlightened citizens. Educational status of Anamberians has significant influence on their attitude towards insurance.
That make the insurer to know the limit covered of his policy so that on the occurrence of any insured event he can ascertain the perils and know whether he has genuine claim or not.
As the economy of the state is growing, it is this problem of un-recognition of the insurance service emanates from the difficulties encountered by the insurance companies and their agents while making effort to convince people into taking insurance cover from their lives and properties.
Many people in Anambra State have little or no knowledge of insurance culture, where this study focuses, making them to look down every effort made by the insurance and their agent to take up insurance covers.
As we all are aware, there is no smoke without fire. This is to say that this latest in evaluation of public appreciation of the insurance service is not without a causes base on this premise there are different opinions from different people concerning this issue.
Some people have the opinion that insurance service constitute swindling avenue because they always shy away from their responsibilities given one reason or the other. To others, they say that the nature of insurance service are invisible and therefore they prefer saving their money with banks whose nature of service can easily be ascertained to taking up insurance covers.
Despite the above opinion there are some other general problem militating against the pure operation of insurance services among these factors are bottlement in claim settlement, insurance agent delinquencies, inadequate government incentives, instability of the state economy, lost of technicalities involved shortage of trained personnel. With these factors mentioned above, insurance services find it difficult tom operate effectively and efficiently unless we are able to find.
1.3 Objective of the Study
The broad objective of this study is to examine the public appreciation of insurance services in Anambra state.
The specific objectives are:
- To make more people develop interest in the service of insurance companies
- To find way of making the insurance business have a good public image.
- To alert the insured to understand the nature of the insurance contract and keep to the condition with the contract was made to avoid breach of contract.
1.4 Research Questions
In this the following research question could be used as a guide;
- Does the way the public fell about the insurance industry affect the business sector?
- Does the insurance industry contribute to the growth of the Nigeria Economy?
- Is there any institution responsible for controlling the affairs of insurance service?
- How would you assess if the insurance service here are favorable?
- How do the insurance firms help in financing economic development?
- Does absence of reliable information on the insurance business discourage indigenous insurance industries?
1.5 Research Hypothesis
The research, in order to get exact result has prepared the following statement6 of the hypothesis below;
Ho: Poor economic situation of Nigeria does not have any effect on insurance company.
Hi: Poor economic situation of Nigeria does have effect on insurance company.
Ho: Trust is not essential in the field of insurance.
Hi: Trust is essential in the field of insurance.
Ho: Low premium rate does not have impact on insurance business.
Hi: Low premium rate have impact on insurance business.
Ho: Non-challant attitude of underwriters towards the insurance does not have impact on insurance business.
Hi: Non-challant attitude of underwriters towards the insurance has impact on insurance business.
Ho: Null hypothesis
Hi: Alternate hypothesis.
1.6 Significance of the Study
After going through this work, it will be significant in the following ways.
- Knowledge of the importance of insurance service so that they will learn to appreciate and patronize business.
- From the study, the insurance will learn to work harder and be aware that the progress of insurance industry is in their hands and that it is only if they could do what required of them the business will remain as it is.
- As soon as the public learn to patronize insurance business, there is the tendency that the rate of development of the business will be moving into same direction with the rate of growth of the economy, the study is meant to evaluate this.
- From this study the insured will learn to know the limit of the risk covered by this policy so as that at the occurrence of the event covered there will no misunderstandings between the two parties.
- When there is an increase in the performance of insurance service which the study is also meant to achieve, it will help to solve the unemployment problem in the state. This is because more people will now be needed in the industry to render services.
- It will make the general public to appreciate the socio-economic value of insurance services.
- When the insured are aware of the nature of operation of the insurance service it will make them know the reasons why their previous claim where not honored and this will increase their morale to proposing for more insurance cover.
1.7 Scope of the Study
The study is focused on Anambra state. The commercial city of Nnewi was chosen as the sample because it is one of the biggest commercial centres we have in Anambra state and has a lot of economic activities that require insurance cover. We also know that people from different works of life are residing there.
Based on this premise, we assume that we will get the required respondents to the research questions.
1.8 Limitations of the Study
The area to be covered by this research work is limited to evaluation of public appreciation condition, risk uncertainties and capital as well as where the underlined objectives is wealth optimization.
Other constraints are lack of adequate finance to find all necessary materials needed, time schedule is limited combined with academic work faced by the researcher.
1.9 Definition of Terms
In order to remove the confusion that n may likely attend the study of this work, it is quite reasonable to define certain terms, the clear distinction of these term will remove misunderstanding and facilitate the learning of the study.
INSURER: This is the insurance company that takes the insured in the position he was before the loss occurred.
INSURED: The person or organization that enters into contract with the insurance company.
INSURANCE AGENT: A person, who is authorized by the insurer to solicits, creates, modify or terminate contract of insurance between the insurer and the insured.
CONTRACT: This is a building obligation entered into by two or more parties. Insurance contract is legally define as an agreement enforced at and made between two or more persons by which right are acquired by the one or more to act of forbearance on the part of the other.
PREMUIM: The consideration paid to the insurer to secure the payment of the sum insured on the happening of the contingency insured against.
LOSS: It is an unintentional decline nor disappearance of value arises from contingency. In this study we shall be referring to financial loss.
RISK: It is defined as a possibility containing the contract between the insured and the insurer.
PERIL: This can be defined as the prime cause of loss.
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