INSURANCE COVERAGE: A SAFEGUARD AGAINST BUSINESS RISK/LOSS
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INSURANCE COVERAGE: A SAFEGUARD AGAINST BUSINESS RISK/LOSS
Chapter one
INTRODUCTION
The importance of insurance in modern corporate management cannot be overstated. Insurance firms provide vital services to individuals, businesses, governments, and indeed the economy.
In reality, insurance is a stimulant for economic development; it is frequently referred to as the handmaiden of commerce and industry. Insurance has an impact on every nation. Indeed, its contributions to economic progress are inextricably linked.
According to Irukwu (1987:9), the primary objective of insurance is “to ensure that individuals’ financial losses are fairly and equitable distributed throughout the insured community.”
The policyholders or insured community pay premiums into a common fund from which the unfortunate few who sustained losses are compensated (Irukwu 1987:9). According to Umoh (1987:97), “As financial institutions, insurance companies pool the saving of those who buy insurance contracts
the insurance companies make such savings available for long term investment savings modern business management to benefits from the insurance industry in various ways” .
In addition to its primary functions, insurance companies provide a number of secondary services that are extremely valuable to society as a whole, such as providing financial security to businesses and industrialists;
the insurance industry encourages and promotes commercial enterprises. The existence of an organised insurance system has contributed significantly to Nigeria’s current large-scale commercial and industrial activities.
Some insurance companies offer a financing programme for extending the duration of a life insurance policy. The vast sums of money accumulated by insurers are invested in appropriate securities
which serves to provide society with a consistent flow of investment funds that may be used to promote and grow local industries that are important to the community.
Insurance firms now actively participate in loss prevention. Fire surveyors are educated to assess potential risks in production processes, material storage, and electrical use, among other things.
They give recommendations to limit the number of losses from these sources to a bare minimum. Theft surveyors offer suggestions against the thieves.
The safety mechanisms fitted per their advise will prevent many potential burglars, lowering the frequency of losses. All of the services supplied by insurance businesses, whether directly or indirectly, help modern corporate management and contribute to economic progress.
Background of the study
Anchor Insurance business Limited, which is controlled by the Akwa Ibom State Government, was licenced in October 1989 as a General Business (Non-Life) insurance business and began operations in November of same year.
Its headquarters are located at 7/13 Aka Road in Uyo, Akwa Ibom state. In January 1992, the firm expanded its business range to include life and pension insurance, transforming it into a composite insurance firm.
Anchor Insurance Company Limited was registered by NALCOM as a composite insurance company (R.C – 072) in 1998, with a corporate profit of RI32269.
The company currently has a fully paid-up authorised share capital of two million naira (N90m) for corporate, profit, and anchor insurance.
BUSINESS SCOPE
General Accident Insurance
Burglary/theft involving goods or cash in transportation.
Personal, group, and accident coverage with fidelity guarantee.
Bond: Performance Bond, Advance Payment. Bond types include bid bonds, customs bonds, and credit bonds.
Motor Insurance
Public Liability
Workers’ compensation
SPECIAL RISK
Marine Insurance (Hull, Boat, and Cargo)
Engineering/Contractors are all risk.
Aviation (cargo)
Energy (Oil, Gas)
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