APPRAISAL OF INSURANCE POLICY IN INDIGENOUS CONSTRUCTION COMPANIES IN NIGERIA

APPRAISAL OF INSURANCE POLICY IN INDIGENOUS CONSTRUCTION COMPANIES IN NIGERIA

ABSTRACT

This research is carried out to appraise the insurance policy by indigenous construction companies in Nigeria, the main objective of the researcher is to give a concise analysis of the existence of their importance and the need of insurance policy in indigenous construction companies in Nigeria, The method of evaluation  used were  questionnaires administered and relevant literature were reviewed. The finding of this research shows that deficiencies in the full implementation of the insurance policies and enforcement of the insurance act by indigenous construction and factors militating proper application of the insurance policies. It therefore recommends that the level of awareness of insurance services should be increased and government should control and monitor the implementation and enforce the insurance act.

 CHAPTER ONE

1.0      INTRODUCTION                                                                 

1.1      BACKGROUND

Based on the appraisal of insurance policy by indigenous construction companies, they do away with anything that could breach their agreement as it is stipulated, especially things that can cause delay or abandonment of project. But never can tell, at the cause of the work in the site. The contractors can come across one problem or the other as a result of the accident, There has been a considerable interest in the concept of risk in recent years, with the perception that we live in a” risky society” for example, severe damage of mechanical plant or equipment, injury to workers, damage on constructed work and other circumstance that is beyond controls. However the need is obvious for every indigenous construction companies, to prepare themselves by registering with any of the insurance companies, in case of unforeseen circumstances like accident occurrences, damages on construction work.

The field of experience has shown that many indigenous construction companies and business organization are not aware of the relationship between indigenous construction companies and insurance companies, because of lack of information. 

 

The concept of this research is to bring out the point of emphasis on the benefit of insurance companies to indigenous construction companies. Moreover ,few construction companies among other were said to have relent in their obligatory effort to insure their, building project, properties because of in diligent attitude of insurance companies, this is because of the financial weakness of some of the insurance companies.

National insurance commission had force the insurance companies to increase their capital in other to meet up with the need of their policy holders. According to workshop held at muson centre Lagos recently, It is now mandatory for any development of project to be covered by insurance policy either small or complex project.