CHAPTER ONE 1.0     INTRODUCTION 1.1     BACKGROUND OF THE STUDY

The cover provided under public liability insurance policy is so wide to the extent that its importance cannot be over looked.

Public liability as the name implies cover. A large range in insurance business the lack of understanding of public liability insurance in an insurance contract pose problem not only to the underwriter, but also to the general public. This is due to the fact that public liability insurance cover is so sophisticated and complex.

The public liability insurance cover equally embraces all the cover that has wide range of other risks which are discussed in detail later in this work.

The term public liability insurance as applied to liability insurance is used in the proper dictionary senses; that is to say, public liability is a general policy that protects the insured in respect of legal liability to the third parties injury or damage or claims arising out of corporate organization activities.

Public liability insurance cover is available in most insurance office like the other classes of insurance. The value of public liability insurance cover cannot be over emphasis. One of the reason for this is that the public liability insurance only protects the legal liability not moral liability.

1.2     STATEMENT OF PROBLEM

Public liability insurance is the type of insurance that has to do with providing indemnity against legal liability incurred for accidental bodily injury to third party. It is available for both individual and business that have to do with the public. Given this consideration in what public liability insurance stands for, the insurance will stand in the event of such case when the organization dealing. With the public might find itself in danger of facing damages from an offended party.

1.3     PURPOSE OF THE STUDY

The main purpose of the study is to examine the cover provided under public liability insurance policy in the Nigeria insurance market.

No doubt the cover provided under public liability insurance policy in Nigeria market posed great challenge to the insurer in the organization and the general public at large.

It is the aim of this research to create a new wearer for this challenge at the end of the study.

It is also the purpose of this research work to fulfill part of the requirement of the award of National Diploma (ND) in insurance and risk management as required by the National hoard for technical education (NBTE).

1.4     STATEMENT OF HYPOTHESIS

The hypothesis formulated for this research work are stated below.

Ho:    Public liability insurance does not play any significant value to the nation.

Hi:     Public liability insurance play a significant value to the nation.

1.5 RESEARCH QUESTION

We have formulated certain research question to ensure that this project work meet the standard. The following are the research questions.

1. Does the cover provided under the public liability insurance policy play any role in the actualization of insurance operation in Nigeria?
2. Is there any need fan analysis of public liability insurance in Nigeria?
3. What are the challenges of public liability insurance policy in Nigeria?
4. What alt the roles of public liability insurance in Nigeria?
5. How do underwriters view there public liability insurance policy?
6. Would public liability insurance improve or has improved the national economy.
7. Is public liability insurance profitable to underwriters?

1.6     SIGNIFICANCE OF THE STUDY

This will serve as a useful information or materials for the analysis of public liability insurance policy in Nigeria insurance market, it will also profer solution to insurance problems.

This study will be of great value to the underwriters in their product design and also other underwriting uses.

However, the general public will find this study as a must read to guide their judgment of operations.

1.7     SCOPE OF THE STUDY

This study focus on the analysis of public liability insurance policy in the Nigeria insurance market. The scope of the study therefore is limited to how the public liability insurance business can be actualized. The scope of this study would be limited to the insurance in Rivers State particularly in Port-Harcourt metropolis; a greater number of insurance company who did not have branch office in Rivers State is lift out.

1.8     LIMITATION OF THE STUDY

No matter how brilliant and excellent a project research would be certain area would limit the original scope in which it is intended to this project research is limited based on certain reasons such as time finance and inadequate material (resource centre).

The research is faced with financial challenges to really investigate and gathered enough questionnaires for this study under investigation, time is also another limitation of this work, there is not enough time for the researcher to investigate this work.

Finally the researcher found it difficult to source for a resource centre to gather ideas from existing material for this work. But despite the limitation of this research work there is no doubt that this research work would – meet the requirement of (NBGE).

1.9     THE VARIOUS TERM USE FOR THIS RESEARCH ARE ANALYZED OR EXPLAIN BELOW

1. Insurance: Is a risk transfer mechanism.
2. Insured: This is the person who came to insurance company for protection.

1. Public Liability: This is an insurance cover that covers the widest range of liability insurance.
2. Broker: A person who bugs and sells things for other people is know as an insurance broker.
3. Agent: A person whose job is to act for or manage the affairs of other people in business political etc. an insurance agent.
4. Policy: This is the insurance cover taken by the insured.
5. Analysis: The detailed study or examination of 8th in order to understand more about it The result of tile study; statically analysis the book is an analysis of poverty and its causes.
6. Cover: To place something over or in front of 5t1i in order to have or protect it: over the chicken loosely with foil. She covered her face with her hands.
7. Premium: An amount of money that you pay once or regularly for an insurance policy a monthly premium.
8. Indemnity: protection against damage or loss especially in the form of a promise to pay for any things that happens.
9. Compensation: Something especially money that somebody gives you because they has hart you, or damage something that own, the act of giving this to claim award.
10. Market: an occasion where they meet and buy e.g. fruit/flower etc.
11. Peril Serious Danger: The country economy is now in grave peril e.g. harmful, a warning about the perils of drug abuse.