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  • Chapter 1 to 5
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The aim of this project is to bring out the reason why modern insurance is unpopular in eastern part of Nigeria a case study of Enugu states.

Insurance plays a vital role in the economy but the eastern parts is  yet to be insurance conscious. Chapter one of this work will deal with the introduction of the study, background of study statement of problems objective study, limitation of study and definite of term

Chapter Two literature review, and bring out more details bout the reason for unpopularity of modern insurance in Eastern State




There is a saying that in every country, their fire wood cook their meal. This aphorism is   true of insurance,   which started in various countries in diverse ways. However, industrial revolution development in science, and technology have let to people seeking better and more efficient ways of doing  things

Some of these early forms of insurance  practice like bottomry  or respondent a bonds, craft guilds, sharing of goods amongst many vessel sailing   down yantez River, issue, social clubs, Town  unions  and  communal self- help programmes have metamorphosed into modern insurance  practice

Bottomry bond was the granting of a loan on the security of vessel on the understanding that the loan was not repayable, if the vessel did not survive the voyage. Respondent a bond was  almost the some thing with bottomry bound   except  that cargo was pledged to secure the lone.   The interest represents the premium for covering the risk borne by the lender

Modern insurance as a means of risk management device is the  central  to  the  economic  well- being of man. It is also endemic in any society  as ways of turning for  the  betterment   of  financial  consequence  of  misfortunes  have  been engaging the attention  of man at every age.

Before  the arrival  of the  British merchant  Nigerian, there was no organized insurance  business  as we  know  it  today . there existed  some  traditional  systems of  risk sharking  like crude  or  primitive   forms of   mutual and  social insurance  schemes.  The  extended  family system, age   grade  association, town or  clan  unions were   some  mutual insurance   like  schemes  for  showing  benevolence  to their  member  who had  sufferer  some  misfortunes such  as death, illness. Fire  ravages or  court  cases.

Both the extended family extended  family  system  and  clan  unions  still   exist in Nigerian  today, but most of  their insurance functions has been taken over by an organized   insurance system. It was the British  merchants who established the trading posts on the west coast of Africa that introduced modern insurance business in Nigeria in the     late 19th century. They  arranged  insurance  for  their  trading concerns  on  the London    insurance   market. As  early as 1900s  at  least two insurance companies were know to have   appointed agent in Nigeria.

Royal  Exchange Assurance  company appointed a  resident official  in Lagos  in 1921. Thus   they became  first insurance  company to commence full –scale  insurance  operation in Nigeria  until  when  three  other  British  insurance  companies were established.  The  state of  insurance  industry in Nigeria should  largely be a function of the  state of  nation economy.

The how level of awareness of insurance  can be  readily perceived from student

The success of insurance  depends  on the   co-operation  of a  large  number of  people.  modern insurance operation  involves payment  of assessed contribution known as premium, by the   person  wishing to insurance  known as the  insurance  or policyholders .


The problem  of unpopularity of modern insurance  in Eastern parts of Nigeria is   associated  by the  fact  that people  were  not  aware  of  modern insurance  services, they still  believe in traditional system of insurance  which   the   finds more   convenient   than modern  insurance   system.  They remain unsatisfied  with the service rendered by  most   insurance  firms

Also  some   people  sees  insurance  services as a   malicious act  (419) this was due to the attitude of  the insurance  to the policyholder at the time of claim the find one reason  or  the  other why they should  not compensate    the  claimant.

Another  reason that contributes  to  unpopularity  of  modern  insurance is  the view  of  eastners about insurance.  services,  modern  insurance  service  is a contract that pays  at  the  time  of  loss or  damages, in a situation whereby there  is no  loss  or  damage  they will not  compensate the   policyholder for this reason some  people  prefer buying  share from a financial  institution like banks to buying insurance   products.


This  project  work is  taken to discover  the  following

The  causes  of  distrust on  modern  insurance  service  in Enugu state

To  reveal those  factors  that  hinder   the growth  of  insurance  in Enugu  state.

To  bring to  light those factors which  aided the  development of insurance in the western states.

To let the public know   more about  insurance .

To satisfy   the requirements for the award of national diploma in insurance.


This research work bases it significance on the following.

To formulate and suggest ways  of handling the better image of insurance  in Enugu  state.

To understand the Nigeria economy   and insurance companies performance.

To  let the  public and  insurance  companies  in Enugu  state to know that modern insurance   service is not popular unlike in  Lagos state.

To  view the Nigeria  economy and  the  insurance   companies performance.  More insurance   conscious than the eastern Estates.


The research  is a student  and  is still  faced  with  classroom  work  in this  effect  the  researcher   failed  to devote her full time  for research work.

Financial  incapability is another  constrain  of which  much  could  not  be done  because  of the huge financial  involvement  therefore the research work is limited  to Enugu urban.


Insurable  interest

This is  the  financial involvement between the   policyholder and  the  subject matter   of  insurance  whereby he  stands to gain if the  subject matter  is not  destroyed  and  is prejudiced if destroyed


this is the price  or monetary consideration  passing from the  insured  to  the  insurance  for  their  undertaking to pay the  sum insured  in the  event of the risk insured  against .

3.Indemnifcation                                                                       This is putting the insured back in the same  financial  position he was immediately   before the loss.

Subject matter

This is the item for  insurance


This  means  assessment  of a risk  to know whether to accept the risk or decline if  to accept  at what  rate of  premium.


This is huge loss that is capable of damaging the existence of an insurance company.


This is the coming together of too difference companies to form a single unit company.

Insurance market

This is the market for the sales and purchases  of insurance policies.

9. Broker

This is an insurance intermediary who brings the  buyers and  seller of insurance product together


The person that assesses risk in insurance companies.


This is  the settlement of dispute out of count   by appointing an  independent body  to  look at  the matter and  given  it decision .

12. Jeticism:

This means throwing away some cargo in order  to save a vessel from sinking.

Proposal form

This is a document, which contains all the required information relating to the subject matter of insurance.

1.4 Proposer

This is one who comes to an insurance company for one or more insurance policies.

1.5 Cargo

this  refers to the goods carried by the vessel

1.6   warranty

this is a promise usually made  by the  insured  to the underwriter which usually  limply the  improvement and maintance of the  risk.


This is the right of a person who has   hadminitied another under a Legal obligation  to  stand in the  place of the  other  person  and  avail  himself  of  all  the  rights and  remedies  available to that  other person whether already enforced or not.

General Average

all losses  which  rises in consequence of extraordinary sacrifices made or expenses incurren   for the  preservation  of the  ship and  cargo

Commercial invoice


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Disclaimer: This PDF Material Content is Developed by the copyright owner to Serve as a RESEARCH GUIDE for Students to Conduct Academic Research.

You are allowed to use the original PDF Research Material Guide you will receive in the following ways:

1. As a source for additional understanding of the project topic.

2. As a source for ideas for you own academic research work (if properly referenced).

3. For PROPER paraphrasing ( see your school definition of plagiarism and acceptable paraphrase).

4. Direct citing ( if referenced properly).

Thank you so much for your respect for the authors copyright.

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