ABSTRACT
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.
INTRODUCTION
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.
1.1 BACK 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 country.
The non banking financial institution are classify into difference categories namely:
i. Insurance companies
ii. Co-operative, tariff and credit societies
iii. Financial house
iv. Pension fund
v. State finance corporation
CHAPTER ONE
1.2 OBJECTIVE 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 not available.
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.
1.3 PROBLEM 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.
1.3 SCOPE 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 economy.
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 corporation (NICON).
1.5 LIMITATION 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 are:
iInadequate data due to haphazard record keeping
ii the 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.
There is 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.
1.6DEFINITION OF TERMS
INSURER: This simply means the insurance companies that issued insurance policy
INSURED: This means the customer that is operating insurance policy with the insurance
companies
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.
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