Statistical Analysis Of Insurance Operation In Kwara State
[A CASE STUDY OF GATEWAY INSURANCE COMPANY PLC ILORIN]

1.4 IMPORTANCE OF STUDY

During the course of the study, I was able to understand the various insurance company, which have for long not been opened to perspective customers and also I was able to know the mode of operation of these policies other than motor insurance policy which many customers believe is the only available policy transacted by the company.

I also understand the immense contribution of insurance company to the development of a country particularly in the social, economic and industrial sector by giving adequate protection against unexpected loss. I also gained knowledge about the factors responsible for the performance of each insurance policies which according to Rev. P. A Adeyemo, the manager of motor insurance said is dependent on the economy.

1.5 DEFINITION OF INSURANCE TERMS

PROXIMATE CAUSE: This is the principle where the insurance company assures the customers that they would compensate him on the property he insured these.

HULL: This is the policy which covers the damage or loss that may happen to a ship or damage it cause to other ship.

INSURANCE INTEREST: This term refers to a situation where only person s how have direct interest in the item to be insured may insure it.

CARGO: This refers to marine which risk which may be for a particular cherishment or floating polices covering up to maximum of declared values.

POLICY: This refers to the period of agreement reached by the company and customers. If this period or agreement expires that policy also terminates.

FREIGHT: This is the money charged for the carriage of goods from one place to the other by ships.

ENDOWMENT: this is the method of saving under life insurance which includes the addition of bonus.

COMPREHENSIVE POLICY: This policy provides the two parties to an accident under the motor accident and seems to expensive to run.

THIRD PARTY POLICY: This policy provide as cover fro only the third party if an accident occurs under motor accident policy.

COMMISSION: This is the real profit or gain by insurance company on each policy.

NET PREMIUM: This refers to the profit gained after all expenses have been deducted.

GROSS PREMIUM: This is the total profit gained when all expenditures have not been deducted.

SUM ASSURED: this refers to the amount of money paid to the insurance company.

PROXY: This is the method used to show customer (assured) during the renewal of business with the company.

LAPSE: This term is used to describe a policy that have expired.

MORTGAGE PROTECTION: This policy covers the eventuality of the death of a policy holder before paying fully a mortgage and the insurance company will pay off the mortgage in the name of the dead policy holder, thus relieving the members of the family of the responsibility.

TERM ASSURANCE: This is whereby a policy holder (customer) may insure his life a particular period and if he dies within the agreed period he will be paid benefit but he will not be paid if he does not dies after the agreed period.

FIRE INSURANCE: This insurance provides over particularly to property owner building and the contents kept in them against fire damage. Most importantly this policy covers machinery, industrial establishment. The policy covers special perils, like, lightening, explosion, tornado or rainstorm, flood, earthquake e.t.c.

HOUSE OWNER POLICY: This policy provides cover fro house owners against the risk of the fire and other perils.

HOUSE HOLDER POLICY: This policy covers householder properties (like TV, furniture, equipments) against fire accident.

BURGLARY INSURANCE POLICY: This policy is designed to cover valuable properties both at home and business premises against burglar by visible violent and forceful entry. 

This policy is common to shop owners, supermarkets, chemist shops and even government warehouse.

PERSONAL ACCIDENT INSURANCE POLICY: This policy provides protection for individual against the risk of accident like motor accident, industrial accident or home accident. There is compensation due to the person that insures against these hazards.

TWINS INSURANCE POLICY: This insurance policy provides cover for couples in the eventuality of giving birth to twins. This policy if undertaken by couples help reduce the burden of expenses which they may incur.

LIFE INSURANCE: This type of insurance policy provides compensation or payment if there is disability or death of the assured or if the contract matures in the case of endowment insurance provided the contract is bringing. That is premium are paid as at when due. Life insurance comprises of three types viz: Industrial, Group and ordinary, industrial life policy differs from ordinary life policy in that the system of paying premiums is usually by calling on the policy holder weekly or fortnightly.

Group life insurance, provides coverage to the lives of a member of individuals under one master plan that is to some group of people.

ENDOWMENT INSURANCE POLICY: This type of insurance policy is common in Nigerian. It means that the money assured for a fixed term of years is payable form the date of the policy at that time or pervious death. This policy cater for the department during the policy and can also provide for capital at retirement to supplement pension. This policy can be useful such as in banking for credit facilities and as collateral security for financial assistance.

CHILDREN’S EDUCATION INSURANCE POLICY: This policy can also be said to be endowment insurance but this policy provides fund for expense of education for children of the assured who contribute to this fund, and the date of maturity of the policy must colncide with the year in which such expense is expected to being.

The sum assured is either be paid installmentally or full and premiums are payable throughout the terms of the policy or until earlier death.

1.6 LIMITATION OF THE STUDY

The method of collecting data and how cleverly one is able to present and analyze these data collected contributes largely to the success of any research project. Therefore, I have limited the scope of this study only to the Gateway Insurance company Plc for case study to facilitate accurate, efficient and easy collection of data.

The data collected however, is secondary data by extraction from past records as it was difficult to collect raw data about the company polices and objectives.

Infact, during the study, it was impossible for me to get basic raw facts from the officers I interviewed, as they were not willing to part with such information. Eventually, this has limited the scope to which the study was intended to cover.

ADMINISTRATION: These problems almost created as set back during the study, because I was unable to se the PRO of the company who could have given me the necessary information. Administration who later attended to me was unable to give the needed information; this has limited the scope of study.

Another problem encountered during the study was the inability of the company to make its financial standing public for me to be able to estimate the sale trend of each policy.

All these problems has however limited the extent to which the statistical analysis was intended for this project.

1.7 THE ORGANIZATION STRUCTURES OF GATEWAY INSURANCE PLC

The achievement recorded by gateway insurance in the insurance business is not unconnected with a well structured and efficient administration.

At the help of affair of the company is the Board of director made up of eminent Nigerians who have distinguished themselves in various field, seeing to the day to day efficient administration of the company.

There are also five (5) top-management staffs with the managing director at the top responsible the management of the company. Others are the Deputy General Manager (Technical). Assistant General Manager (Finance) Assistant General Manager (Administration) and the controller of marketing.

Next are the middle management staffs who are managers responsible for the eight (8) department of the company.

The departments are:

i. Accounts

ii. Administration

iii. Claims

iv. Fire general accident

v. Motor

vi. Life

vii. Internal Audit

viii. Re-insurance

The organization charts is shown below: