INTANGIBILITY OF INSURANCE POLICIES AS A SET BACK TO BETTER SERVICE DELIVERY IN NIGERIA

Intangibility of insurance policies as set back to better service delivery is the topic under discussion. This is eth modification of insurance policies or the companies ways of doing things over the years. The work is divided into five chapters. Chapter one deals with the introduction, statement of problems, objectives of the study, research question, significance of the study, scope and limitations and definition of terms. Chapter two covers the literature review, historical developments and so on. Chapter three discusses research methodology including sources of data, population of study, instruments use and validity of the instruments. Chapter four covers findings and discussions of findings. Chapter five covers conclusion and recommendations. The work ended with bibliography and appendix.
 
CHAPTER ONE
INTRODUCTION
1.1  BACKGROUND TO THE STUDY
Despite the introduction of the structural adjustment programme (SAP) advocated by the federal government in July 1986 to combat and resolve the economic crisis that have lingered since 1980, most companies especially the manufacturing companies have shown bad performance. Low capacity utilization has led to the retirement of thousand and workers nationwide since that time.SERVICE DELIVERY Obviously, the insurance industries cannot be spared from reacting to sudden change in the economy which is difficult to predict. There is direct positive relationship between the performance of the economy and that of the appropriate action to relieve the fear and concern of the watcher’s and viewers of the industries. It can also adopt effective work process or system to meet the expectation of the growing population of the insured.SERVICE DELIVERY Over the years, the insurance service (product) way of performance has taken the form of religiously repeating the same set of tasks over and over again without considering the effectiveness as it relates to the need of customers. More or less, the performance of the insurance service has been that of routine and stereotype activities as they were handed down by the pioneers (British Company). Surprisingly, many police documents of today are still fashioned and designed with the same old wordings and format as they were handed from inception such as witnesseth, etc.
1.2  STATEMENT OF THE PROBLEM
The problems that led to the research work are as follows:
1. The intangible nature of the insurance products that makes it difficult or the insuring public to understand what they are buying.
2. Lack of adequate awareness campaign to explain the intangible nature of the product.
3. Ambiguity of the policy and underwriting conditions.
1.3  OBJECTIVES OF THE STUDY
The objectives of the study are as follows:
1. To evaluate the impact of the intangible nature of the insurance product on the populace.
2. To determine how the ambiguity in the policy contributed to the linage problem of the insurance industry.
3. To access the cause of present failure of some insurance companies in Nigeria.
4. To highlight the features that given rise to intangibility.
1.4  RESEARCH QUESTIONS
1. How is the intangibility nature of insurance product affect the marketing of the problem? Does the ambiguity of the insurance policy contribute to the problem of insurance image?
2. Many insurance companies still use old stereotype method of preparing policy. Why is this?
3. What effort were the insurance supervisory bodies made to remedy this situation?
4. Who are to be blame for all those problems facing insurance industries today, government or the insurers themselves?
1.5  SIGNIFICANCE OF THE STUDY
This research will be of immense benefit to the following persons; students. Those who will carry out further research on the related subject in future will find this useful. Insurance companies:- The recommendation of this work will help the insurance companies and stakeholders. This will benefit everybody if the recommendations are implemented.SERVICE DELIVERY
1.6  SCOPE AND LIMITATION
This study covers all the various arms of insurance business namely:
1.    The insurance companies
2.  The reinsurance brokers
3. Other specialized interest groups in insurance business such as the supervisory bodies.
4.    Reinsurance companies.
LIMITATION OF THE STUDY
The research work is limited by financial constrain and time.
Lack of research materials is another problem found poor response from the respondents was another factor that limited this work.
1.7  DEFINITION OF TERMS
1. Insurance: This is a system whereby members of a scheme contribute money from where the few that suffer loss or compensated.
2. Brokers: These are professional intermediary between the insuring public and the insurance company.
3. Reinsurance: This means reinsuring a particular subject matter which has been insured for a second time. This time the insurance arrangement is between the insurance company (ceding company) and the reinsurance company.
4. Agent: These are intermediaries in insurance contract. They are not professionals person’s and they may emerge from any professional but must possess the ability of convince and prospective client about a policy.
5. Contra-Preferential Rule: This states that any party which draws up a document is responsible for such that any ambiguity or uncertainty arising from it shall be continued against such party.
6.  Respondent Bond: This is a situation where cargo is pledge to obtain a loan instead of vessel.
7. Bottomry: This is a loan obtained by a ship owner to cover vessel loss at particular voyage.
8. Canvassing: This is a situation where by an insurer broker or agent goes about seeking for buyers of insurance policy.
9.    Underwriting: This is accessing the chance of a particular risk occurring and deciding on whether to accept the risk or not and under what condition to accept of it must be accepted.
10.  Policy: This is another word or name for insurance cover.