This work done (that is the research project) is mainly focused on the
effectiveness significance and objectivity of non banking Financial Institution
on the growth of Nigeria Economic (A Case study of NICON insurance Company Oke
Ira Osogbo, Osun State branch).
This research work has basically lay emphasis on the effectiveness, the
impotency and impact of national Insurance Corporation of Nigeria sector,
commercial sector as well as the small scale business and farmers in promoting
Economic growth of Nigeria.
TABLE OF CONTENTS
Title page i
Table of contents v
CHAPTER ONE 1
of the study 1 - 2
of the study 2
of the study 2
of the study 3
of the study 3
of the study 3
of insurance 6
of insurance company 7
of the company 8
principle under insurance company 9
of insurance policy 11
between insurance and wagering contract 13
of insurance with agent and broker 14
of fund 14
and objective of insurance company 15
3.1 Methodology 16
3.2 Method of data collection 16
3.3 Designed questionnaire 17
4.0 Data presentation and
analysis of result 18
4.1 Introduction 18
4.2 Structure operation of
4.3 Regulations and activities
of NICON 19
4.4 Classes insurance
transacted by Nicon 21
4.5 Benefit of life
assurance 21 - 22
4.6 Fact you must know about
4.7 Nature of insurance
5.0 Summary, conclusion and
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.
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 non banking financial institution are classify into difference
Co-operative, tariff and credit societies
State finance corporation
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
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.
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.
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
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
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
data due to haphazard record keeping
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.
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.
INSURER: This simply means the insurance companies that issued insurance
INSURED: This means the customer that is operating insurance policy with
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
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.