CLAIMS MANAGEMENT IN AN UNDER RESSESION

Project Abstract

<p> </p><p>This study looks at the claims management aspect of the Insurance practice and as a panacea to boast the confidence of the insuring public about the workings of the Industry in promoting peace, growth, stability and development in a depressed economy like Nigeria. The project is written in five chapters. The first chapter deals with the poor public image meted to the Insurance Industry and the possible cause of this ill-feelings about the Industry. Chapter two tells us about claims management and the procedures or conditions that must be met for a claim to be accomplished. While chapter three is concerned with the sources of data collection both primary and secondary in carrying out this piece of work. It also deals with the sampling and challenges that were faced with the researcher in the cause of caring out the research. In chapter four the researcher presented the data using tables and percentages for clear understanding. The last chapter deals with findings and recommendations given by the researcher that will alleviate or improve the image of the Insurance Industry if adhered to.</p><br> <br><p></p>

Project Overview

<p> </p><p><strong>INTRODUCTION</strong></p><p><strong>1.1 BACKGROUND OF THE STUDY</strong></p><p>Notwithstanding the positive roles insurance Industry plays in the social and economic development of our country, the Industry still does not enjoy good public image. The public see the Industry as one that is quick to collect money called premium and reluctant, if not refuse, to pay claims.</p><p>The most important reason for this impression is that there is a low level of Insurance awareness in our society. The public are not properly educated on the scope, functions and limitations of insurance as well as the basic rules that govern Insurance transactions especially in the issue of claim settlement.</p><p>Claims settlement is a very vital issue that may cause dispute between the Insurers and their policyholder. Infact, most of the disputes that arise in Insurance contracts have to do with settlement of claims. So, an important factor that distinguishes a good Insurance company is its claims settlement service. It does not mean that an insurer should be over liberal in order not to edge itself out of the market. &nbsp; Admitted genuine claims should be settled promptly for an Insurance company to maintain a good public image.</p><p>Claims management is very vital to the continued growth of the Insurance Industry as well as the confidence the public will have on it.</p><p>Insurance Industry as well as the confidence the public will have on it.</p><p>According to Erhabor (2001) the ability and competence of an Insurance company cannot be truly known or assessed not until a claim situation arises. The acid test for the company lies not so much in the sophistication of the company’s marketing, not so much as in the noise and type of the company but in the ability of the Insurer to attend to reported claims.</p><p>Lijadu (1987) observed that, the average Nigerian, with some degree of justification, sees the Insurance business in Nigeria as a one-way traffic that leads into the bank accounts of Insurance companies. Hence, it is generally felt that Insurance companies are inept at settling claims.</p><p>To an Insurer, the end product of any Insurance business is the payment of claims to the Insured. According to NICON (999:1-32) claim payment is not only a legal obligation of an Insurance firm, it is a strong public relations Instrument and a marketing, strategy for selling the product of an Insurance company. .In addition, every Insurance company that wants to remain in business must entirely be careful on its handling of claims settlement.</p><p>The ability of an Insurance company to settle; claims creates public confidence and acceptance while the Insurance’s care and corporate necessary for the sustenance of the growth of the Industry.</p><p>The importance of claim management can not be over emphasized especially in a depressed economy as in the case with most African States.</p><p>Hence, this study to understanding how effectively claims could be managed in a depressed economy.</p><p><strong>1.2 STATEMENT OF THE PROBLEM</strong></p><p>The problems that gave rise to this study are:-</p><p>The non-challant attitude of Insurance companies in claims management.</p><p>The reactions of the Insuring public when ever their claims are not settled or delayed by Insurance companies.</p><p>The bad or poor public image meted out to the Insurance Industry as a result of poor management of claims.</p><p>The ill-fellings of people whenever they hear of Insurance business.</p><p><strong>1.3 RESEARCH QUESTIONS</strong></p><p>1) &nbsp; How does Insurance companies respond to claims &nbsp; &nbsp; payment.</p><p>2) &nbsp; Why do Insurance companies delay in paying &nbsp; &nbsp; &nbsp; claims to the &nbsp; &nbsp; &nbsp; policyholder or the claimant.</p><p>3) &nbsp; Does Insurance companies pay claims.</p><p>4) &nbsp; How often does claims arise.</p><p><strong>1.4 OBJECTIVE OF THE STUDY</strong></p><p>The objectives of this study is to Identify the problems and prospects associated with, claims management in insurance industry and to disabuse the minds of the Insuring public that insurance is a one-way traffic that leads to the bank accounts of Insurance companies.</p><p>It is also aimed at enabling the reader (Insuring public) to understand the National behind <a target="_blank" rel="nofollow" href="https://www.modishproject.com/development-of-mobile-payment-system-an-implementation-of-cashless-economy/">claims payment</a>, that is whether claims are genuine or not and the causes of delay in some claims.</p><p>To recommend to insurance companies possible means of ensuring that the image of Insurance is enhanced.</p><p><strong>1.5 RESEARCH HYPOTHESIS</strong></p><p>The research hypothesis serves as a means of finding the answers to the problems confronting claims management arid its contributions to the development of a depressed economy, this could be traced through the following hypothesis:-</p><p>1) &nbsp; To identify the problems and prospects associated with &nbsp; &nbsp; claims management.</p><p>2) &nbsp; To encourage the Insuring public to enter into Insurance &nbsp; contract.</p><p>3) &nbsp; To look into claims management in the development of &nbsp; &nbsp; the national economy.</p><p><strong>1.6 SIGNIFICANCE OF THE STUDY</strong></p><p>Owing to the negative attitude of the general public towards Insurance and the need for proper and efficient claims management this research work is meant to educate the reader, the <a target="_blank" rel="nofollow" href="https://www.modishproject.com/the-impact-of-cash-flow-risk-management-in-the-insurance-industry/">Insurance company</a>&nbsp;on how to handle claims efficiently via the recommendations contained in this write-up, if adhered to.</p><p>This will also enhance the development of the entire economy since proper claims management will boast the confidence of the Insuring public on Insurance Industry thereby alleviating the nigh level of poverty in the economy.</p><p>This research work will further enlighten the Insuring public on the need for Insurance cover.</p><p><strong>1.7 DEFINITION OF TERMS</strong></p><p><strong>CLAIMS:</strong>&nbsp;A demand by the insured for payment under his policy.</p><p><strong>MANAGEMENT:</strong>&nbsp;The process of planning, controlling and co-coordinating.</p><p><strong>DEPRESSED ECONOMY:</strong>&nbsp;This refers to an economy where the value of its currency is very low or a base. Level of poverty is so high unemployment is also very high.</p><p>policyholder by the Insurer, by given him protection against future loss.</p><p><strong>BUY:</strong>&nbsp;In this contest is the consideration on the part of the Insured for the insurer to Indemnify or compensate him on the occurrence of the Insured event(s).</p><p><strong>POLICY:</strong>&nbsp;This is &nbsp; &nbsp; the documents that evidence the contract of Insurance, since Insurance cannot be seen or touched.</p><p><strong>COVER:</strong>&nbsp;Is the protection granted by the Insurer.</p><p><strong>PSYCHE:</strong>&nbsp;This relates to a healthy mind.</p><p><strong>INDEMNITY:</strong>&nbsp;Simply means putting the policyholder in his pre-ante position before the loss.</p><br> <br><p></p>