This project is one the topic titled “The Role of Nigerian Insurance Industry in the Promotion of Central Market Services”. The statements of problems try to identify the problems that led to the research and the objectives of the study supply ways of solving the problems the sources of data is through the oral interview and questionnaires. The instruments used were valid because they comprises the statement of the problem, the objectives and the research questions. The instruments were reliable because the rate of return was very high one of the findings is that modernization of agricultural sector to ensure effective development will require native intension of various agricultural schemes. One of the recommendations is that government should increase awareness for insurance companies in Nigeria to insure agricultural products.
1.1 BACKGROUND OF THE STUDY
Insurance industry belongs to the financial sector. In the course of managing people’s fund the insurance companies invest in highly marketable securities, these by aiding economics growth.
In this case we may say that insurance on it’s own can be defined or said to be the social activity which deals with people coming together to contribute in a common fund from which they compensate the few unfortunate ones who may suffer misfortune in form of financial losses.
All human on earth is faced with responsibility that one or more of the hazard which form part of life will sooner or later be fall him and cause him some financial losses. For instance where larger farm or modern factory is damaged by fire, the cost of putting it back may be immense and would involve the purchase of machinery and other farm facilities from abroad or within the country. The loss compensation to injured employees and other onerous responsibilities which the owner would be ill-prepared to meet at a time when his assets are in ruins as a result of fire, flood, thunder, storms as a result of fire, flood, thunder, storms theft, etc.
Insurance, being one of the most maligned profession in the financial services section of the Nigerian economy has grown by leaps and bounds in terms of market size and premium income generation since the country’s independence in 1960.
The purpose of this research in protecting the role of insurance industry in protecting agricultural products financed by the federal government of Nigeria. There is legislation by the government to control the activities of insurance companies known as 2003 Insurance Act.
1.2 STATEMENT OF THE PROBLEM
1. Ignorance on the side of the farmer about the various types of diseases that attack animals and crops.
2. Carefree attitude of the people towards their farm crops and animals.
3. Lack of collateral to obtain loan from financial bodies.
1.3 OBJECTIVES OF THE STUDY
1. To meet the national objectives of development agricultural products.
2. To feed the people and to export the surplus.
3. To ensure that government policies and guide lines on the scheme or fully implemented.
4. To earn foreign exchange to the country.
1.4 RESEARCH QUESTIONS
1. Does agricultural financing problem in Nigeria have anything to do with the insurance companies?
2. What are the effects of poor storage and packaging facilities?
3. Can the ignorance on the side of the farmer have anything to do with disease that attack animals and crops?
4. If without collateral, can the farmers obtain loans from financial bodies?
1.5 SIGNIFICANCE OF THE STUDY
This research work will be of immense benefits to students who embark on further research on the similar topic in the future. A will sense as reference points for them.
– The Stake Holders:
This work will be useful to all the stake holders in the capital market. These includes the borrowers of capitals.
– The Insurance Industry:
The nation will benefits from this work if the recommendations of the research work is implemented to the later.
1.6 SCOPE AND LIMITATION OF THE STUDY
The study is limited to Enugu metropolis and farmers in its environs. Information gathered from Agricultural Insurance Company at Zik’s avenue Enugu were also used. Insurance cover available to form crops and livestock are carried.
The problems encountered by the researcher in the course of this study includes:
Time: The time given for this work is too short as other activities are there to be faced.
Lack of Fund: Lack of fund is another problem faced. Because of lack of money, the author could not travel to rural areas to meet the rural farmers.
Lack of Research Materials: Also posed a serious problem. Poor response from the respondents is yet another problem faced. The respondents were reluctant to give free answers because of fear of being victimized by their employers.
1.7 DEFINITION OF OPERATION TERMS
1. Accident: A completely tortuous mistrip, which is neither expected, nor designed.
2. Broker: An insurance intermediary who acts on behalf of the insured and professional states in advising and arranging their insurance business.
3. Contract of Insurance: An agreement between the insurer and the insured whereby the insurer undertakes in return for the payment of premiums to pay the insured compensation of a sum of money upon the happening of a specify event.
4. Cover: Protection provided.
5. Claim: The demand by the insured a payment under the policy after the insured even has occurred.
6. Insured: The person or organization covered by an insurance policy.
7. Insurer: The person who indemnifies the insurance after a claim.
8. Liability: Legal responsibility for the injured to another person to damage to his property.
9. Premium: The consideration paid by the insured to secure an insurance cover.
10. Indemnity: Putting the insured in the same finance position he enjoyed before a loss accident occurred.