THE EFFECTIVENESS OF NON-BANK FIANNCIAL ISNTITUTION ON THE GROWTH ON NIGERIA ECONOMY (A CASE STUDY OF NICON INSURANCE)


THE EFFECTIVENESS OF NON-BANK FINANCIAL INSTITUTION ON THE GROWTH ON NIGERIA ECONOMY (A CASE STUDY OF NICON INSURANCE)

CHAPTER ONE

1.0       INTRODUCTION

It is very obvious that the financial system in any economy is the bedrock within which capital is formulated, those take place  and it made possible by the intermediation of bank and non bank financial institution.  

1.1       BACK GROUND OF THE STUDY

The non banking financial institutions are the type of specialist intermediaries, through they are not bank whose financial resource are primary from deposit their participation is centered on the function of accumulation of longer term saving from either corporate bodies or from individual as well as channeling these saving to individual corporate bodies and government for the purpose of productive investment and economic growth. These financial intermediaries are not withdrawable on demand also they do not issue cheque like the bank, their function are limited to certain specific area these institution which have been of very good advantage  to a developing economy like Nigeria contribute immensely to the development economic growth of the country.

The non banking financial institution are classify into difference categories namely:

Insurance  companies Co-operative, tariff and credit societies               Financial house Pension fund State finance corporation

CHAPTER ONE

1.2       OBJECTIVE OF THE STUDY

The basic fact under these objective of the study is to encapsulate the contribution of insurance companies to the development of our country Nigeria. At this junction, the insurance companies (NICON) promote  the business risk of both business and agricultural sector, financing the group between the rich and the poor, also safeguarding against numerous risk to which capital is exposed and take part in promoting bilateral and multilateral trade. For example international trade would be greatly impeded if insurance and export credit guarantee insurance schemes were not available.

Furthermore, the insurance companies show different policy which people can venture into i.e. whole life insurance policy and non life insurance policy and at the same time practice both policy, under the whole life insurance policy payment become due on the death of the life assumed, while in non life insurance policy payment became due at the state data it has been mentioned above that it is possible for people to take part in both polices this make it possible, according to the guide line produce by insurance companies degree and some immediate benefit in taking at a time.   

1.3       PROBLEM OF THE STUDY

For the purpose of literacy we categorically state from the onset that non-banking financial institution constitute and indispensable organ in achieving economic growth and development of any nation like Nigeria.

However there exist a paradoxical situation within context when in spite of the realization of this significant percentage of Nigeria population area yet to be incorporated into non-banking financial institution are  the best word to describe the attribution on the other hand the lack of public awareness about the usefulness of non-banking financial institution like insurance companies (NICON) and other financial house, people do not know their usefulness and importance of their services rendered.

The poor development of non-banking financial institution as well as the whole economy, such as quality of insurance companies (NICON) service economic moral, social political and even religions factor the project therefore delves into these problem and offer constructive measure of suggestion that could of immense help in achieving better non-banking financial institution in Nigeria.

1.3       SCOPE OF THE STUDY

This study has it main focus of highlighting the effectiveness, regulation and economical important of non-banking financial institution on the growth of Nigeria economy.

It helps to highlighting the historical background and the nature of insurance companies. Moreover it also has the case study of the above mention named insurance company, which is National Insurance Corporation of Nigeria (NICON) the include the history, effectiveness and activities of the corporation (NICON).

1.5       LIMITATION OF THE STUDY

The major difficulties encountered during this study are just the administrative bottle neck and unwarranted bureaucratic redotarism of obtaining information from the public function.                                

Some other Problems Encountered During the Study are:

iInadequate data due to haphazard record keeping

ii          the uncooperative attitude of the people most especially the literates one and even the learned people were reluctant to give adequate information.

In view of these alternative means were explored from the National Insurance Corporation of Nigeria (NICON), textbook and different journal book.

There is limitation in data collation for the purpose of inter company comparison. It would have been appropriate to collate various companies financial statement for the purpose of analysis them. This was not possible simply because some companies were not willing to release their financial statement.

1.6              DEFINITION OF TERMS

INSURER:     This simply means the insurance companies that issued insurance policy

INSURED:     This means the customer that is operating insurance policy with the insurance

companies

SUM ASSURED/INSURED: This simply means the amount to be paid as compensation

PROPOSAL FORM: This are the form that are pre-prepared questionnaire issued by the insurer to be completed by either the propose or his agent and which ask question about the subject matter of the insurance since the insurer will use the information to assess a premium, the prospective insured must disclose all material circumstance in utmost good faith, whether or not he is asked form them an form.

The solution to the questionnaire will assist the insurer to decide whether to accept the contract or not if the proposal is accepted by the insurer. The first premium is paid and the insurance of the cover note.

COVER NOTE: This is a note issued to the insured by the insurer after the insurer has accepted the risk in principle and insured has made part payment of the premium this will served as a temporary note before a certificate of insurance is issued after the proposal form has been processed and the insure is satisfied.

The cover note lasts for one mouth, within this period a certificate of insurance is expected to be issued.

CERTIFICATE OF INSURANCE: this is a certificate issued by the insurer, when the insured has made full payment of his premium after a month of the Cover Note. In circumstance, when insurance cover is compulsory by law it is used for a certificate of insurance to be required by the statue.

Employer’s liability insurance certificate Motor insurance certificate.

PREMIUM: This is a certain amount of money to be paid or paid by insured to the insurer for his insurance policy. The estimation of premium is based on the on the I formation supplied in the proposal form, it may be paid weekly, monthly or yearly.

POLICY AGREEMENT: This stand for an agreement between the insurer (insurance companies) and the insured, this is different from insurance policy because insurance refer to different class of insurance like marine policies and accident policies e.t.c.

SUBROGATION: This term refer to the right of the insure has against the insured after he has been fully indemnified and take over not only what is left of the property, but all the legal and right to sue the third part for damages, if an insurer pay for a total loss, he may take over the subject matter and right attaching to it in a partial loss, he may take over the right but not the subject matter.

ACTUARY: An expert in the calculation of risk and premium

EX-GRETA PAYMENT: This is payment made by the insurer to an insured out of sympathy and outside legal obligation.

SURRENDER VALUE: This is a proportion of the amount contributed payable to the assure who whishes to discontinue with his life endowment policy.

UNDERWRITERS: This is the person that perform the task of underwriting, that is some one on behalf of the insurer must assess the risk of loss being proposed and decide whether it is acceptable or not when risk is offered by a prospective insured if it is acceptable the under writer must decide on the rate of premium to be changed and the term and condition to be imposed on an insurance contract. The main business is cover or under writers a portion of the risks. This is more common in marine insurance where a ship may be insured for #150,000.00 and three (3) insurer can agree to insure the ship, that mean each insurers liability will be limited to #50,000 if there is an occurrence  of the risk.

REINSURANCE: As it has been noted above the risk involved in a struggle venture can be too huge for insurance company to bear one way of spreading out such risk through insurance.

The transfer of risk from one insurance company to another insurer (the re-insurer) all or part of its liabilities in respect of claims arising under the contract of insurance that is writes. This is a risk insured by Mr. AB with company EF etc the purpose is to spread the risk so as to reduce the Wight of loss.

OVER INSURANCE: This happen when properly is over insured for more than its worth. There is no advantage in this, as an insurer will never pay more than the true VALUE of the properties.

.


TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.COM

Researchwap.com is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.com guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.com is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.com" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.