APPRAISAL OF INSURANCE POLICY INDIGENOUS CONSTRUCTION COMPANIES IN NIGERIA

ABSTRACT

This research is carried out to appraise the insurance policy by indigenous construction companies in Nigeria, the main objective of the researcher is to give a concise analysis of the existence of their importance and the need of insurance policy in indigenous construction companies in Nigeria, The method of evaluation used were questionnaires administered and relevant literature were reviewed. The finding of this research shows that deficiencies in the full implementation of the insurance policies and enforcement of the insurance act by indigenous construction and factors militating proper application of the insurance policies. It therefore recommends that the level of awareness of insurance services should be increased and government should control and monitor the implementation and enforce the insurance act.

CHAPTER ONE

1.0     INTRODUCTION

1.1     BACKGROUND

Based on the appraisal of insurance policy by indigenous construction companies, they do away with anything that could breach their agreement as it is stipulated, especially things that can cause delay or abandonment of project. But never can tell, at the cause of the work in the site. The contractors can come across one problem or the other as a result of the accident, There has been a considerable interest in the concept of risk in recent years, with the perception that we live in a” risky society” for example, severe damage of mechanical plant or equipment, injury to workers, damage on constructed work and other circumstance that is beyond controls. However the need is obvious for every indigenous construction companies, to prepare themselves by registering with any of the insurance companies, in case of unforeseen circumstances like accident occurrences, damages on construction work.

The field of experience has shown that many indigenous construction companies and business organization are not aware of the relationship between indigenous construction companies and insurance companies, because of lack of information. The concept of this research is to bring out the point of emphasis on the benefit of insurance companies to indigenous construction companies. Moreover ,few construction companies among other were said to have relent in their obligatory effort to insure their, building project, properties because of in diligent attitude of insurance companies, this is because of the financial weakness of some of the insurance companies.

National insurance commission had force the insurance companies to increase their capital in other to meet up with the need of their policy holders. According to workshop held at muson centre Lagos recently, It is now mandatory for any development of project to be covered by insurance policy either small or complex project.

1.1       THE NEED OF THE STUDY

The importance of insuring properties during construction work need to be emphasized as this determine the success of a project, also the irregularities between the indigenous construction companies and the insurance policies need to be settled, now the need of the study will encourage the stake holder, the indigenous companies the need to insure their projects, properties and product, so that it will define the roles of insurance companies in any project execution in the country.

1.2     STATEMENT OF THE RESEARCH PROBLEM

The research intends to admit the following point,

1. Why do some indigenous construction companies under take project development or execution without insurance policies?
2. Why are indigenous construction companies suffering from delay in the payment of claims?
3. Frustration in the insurance business on the part of the indigenous construction companies?
4. Lack of awareness by the indigenous construction companies

1.3   AIM AND OBJECTIVES OF THE RESEARCH

1.3.1   AIM

The aim of this research is to appraise the benefit or importance of insurance policy to indigenous construction companies in Nigeria.

1.3. 2     OBJECTIVES

1. To identify the factors militating against proper application of insurance policies by indigenous construction companies
2. To identify the types of insurance scheme commonly operated in indigenous construction companies
3. To appraise the duties of insurance companies to indigenous construction companies.
4. To examine the existing insurance policies.
5. To assess the level of awareness of the insurance policies by indigenous construction companies

1.4       METHODOLOGY

In order to evaluate the efficiency of insurance policy to indigenous construction companies, there were review of related literature, google, site visit, internet and articles, magazines, textbooks and journals used to provide some part of this write up. Also questionnaire will be sent to organization/companies to obtain practical data on the subject matter.

1.4.1   DATA COLLECTION

These are data specifically collected by the researcher for the purpose of the report.

Data where collected through the following sources:

1. Direct personal observation
2. Oral interview
3. Telephone conversation
4. Questionnaire

1.4.2  ANALYSIS

Statistical method that were used to analyze the data include frequency distribution and simple percentage

1.5       SCOPE AND LIMITATION

This study is limited to various insurance policies employed by indigenous construction companies in Nigeria with reference to the Jct form of contract. The research will cover Abuja FCT metropolis and it’s limited to indigenous construction companies in Nigeria.