Effect of Fire Insurance Policy on Claims settlement in the Nigerian Insurance Industry

Abstract

This descriptive study is about the effect of fire insurance policy on claims settlement in the Nigerian Insurance Industry with the major objective of assessing the effects of fire insurance policy on claims settlement in the insurance sector in the Federal Capital Territory (FCT) of Nigeria had a population of 11,426 comprising of the clients and employees of three insurance firms including AIICO, Zenith Insurance and Axamansard. That population was reduced to a sample size of 387 using Yammane’s statistical technique. The study employed the secondary and primary sources of data. Most particularly, copies of questionnaire were administered on the sample size of 387, and 284 respondents (copies) representing 73.39% were completed and returned. Subsequently, the simple percentage (%) statistical tool was used to analyze the data while the multiple regression technique via the e-view was used to test the hypotheses. The findings showed that fire insurance policies do positively and significantly affect claims settlement in the Federal Capital Territory of Nigeria and that some policies have more effect on some claims settlement than others. Consequently, the study recommended that the selected insurance firms and othersshould strive to develop the most effective and efficient insurance policies that would encourage settlement of claims promptly in order to attract and retain more clients. Furthermore, it recommended that insurance firms should strive to modify existing general policies to suit
peculiarities and needs in other to increase patronage.