The analysis of the relationship between premium and claim settlement in nigeria insurance industry (between the year 2002-2012)

Thesis Abstract

Insurance industry plays active in economic development of any nation. No developed or developing nation can do without insurance. For the proposed insured to be covered there must be a consideration. It is this consideration that is called premium, the law of Insurance States that no cover without premium on the other hand, as far as insurance is concerned. There is no tangible product to test, what the insured purchases is just a promise to pay a claim arising after the purchase and consistent with the policy sold. The actual test therefore does not come until such a claim comes up from the insured of other party concerned. If the insurer at that time makes good his promise, the insured is satisfied that he has made a good bargain. But where however the insurer fails, the insured is disappointed. This disappointment may result in serious consequences to the insurer. Claim settlement is a very vital issue that may cause dispute between the insurers and the policy holders. Infact most of the disputes that arises in insurance contract has to do with settlement of claims and quantum to be paid, so an important factor that distinguishes a good insurance company is it claims settlement services. Therefore there is a big relationship between premium and claim settlement.