Bello Ayuba, M. S. Isyaka, Azuoonwu George Agugua


This study examines the impact of claim settlement on the performance of general insurance businesses with evidence from the Federal Capital Territory (FCT), Abuja-Nigeria. The specific objectives are to determine the extent to which claim settlement influence motor vehicle insurance policy and fire insurance cover on household goods in FCT. As part of the methodology, both primary and secondary sources of data were used in the study. A total of 408 copies of questionnaires were administered to selected employees of the insurance companies, their customers and owners of insured household goods, middlemen and industry stakeholders across the six Area Councils of the Federal Capital Territory (FCT), Abuja; out of which 297 copies of the administered questionnaires, representing 72.79% response rate were returned and used for analysis in the study. The study which was analyzed using descriptive statistics and multiple regression model to test the formulated hypotheses in line with the objectives of the study, reveals that, “claims settlement has significant impact on the performance of general insurance businesses in selected insurance companies”. Specifically, the results show that all the three adopted variables namely: fire insurance policy including comprehensive, blanket and proximate loss have significant impact on the performance of general insurance businesses. The study also found ethical issues, poor premium collection and solvency problem/low liquidity and the lack of standard among others, as the main factors responsible for default or failure in prompt claim settlement, which hinders the performance of some insurance companies. The study recommends that Managers of insurance companies should be making available quality insurance services, fair premium and ensuring prompt attendance to customer complaints and effective communication and strategies that will have strong influence on customer satisfaction to improve the image and performance of the insurance companies.


Blanket, Claim Settlement, Comprehensive, Insurance Policy, Nigeria

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International Journal of Management Science Research ISSN ISSN 2536 – 605X(Print)

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