ATTENTION:
BEFORE YOU READ THE ABSTRACT OR
CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK
YOU!
INFORMATION:
YOU CAN GET THE COMPLETE
PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COSTS N10,000 ONLY. THE FULL
INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS
PAGE. OR YOU CAN CALL: 08068231953, 08168759420
ANALYSIS OF THE BASIC PRINCIPLES OF INSURANCE
UNDER THE NIGERIAN LAW OF INSURANCE
CHAPTER ONE
INTRODUCTION
1.0.0 INTRODUCTION
Due to the high level of illiteracy in the
Nigerian society, many people are unaware of insurance policies. However, with
the enactment of Insurance Decree[1], the awareness of insurance policies was
enhanced. Thus, more people took steps to insure their properties or lives.
Unfortunately, however, much as the high percentage of them normally end up
unable to have their claims indemnified, either as a result of a breach of one
insurance principle or another. These principles are numerous and they are the basis
upon which insurance contracts are based. Failure to adhere to any of the
principles may render an insurance contract void. The need to understand as
well as having a second knowledge of the basic principles of insurance cannot
be over emphasized.
These principles of insurance which are i)
Insurable interest; ii) Utmost good faith/Duty of disclose; iii) Subrogation;
iv) proximate cause; v) Indemnity; vi) ‘No Premium, No Policy’, are the bedrock
of insurance contract, the absence of any of which the purpose of insurance
will be defeated.
The purpose of insurance cannot be
farfetched. This can easily be seen from the various definitions of insurance.
Insurance contract has been defined in the case of PRUDENTIAL INSURANCE COMPANY V INLAND REVENUE COMMISSIONER[2], as
a contract whereby a person called the
‘insurer’ undertakes in return for the consideration called the premium to pay
another person called the ‘assured’ a sum of money or its equivalent on the
happening of a specified event
Insurance is an intricate economic and social
device for the handling of risks to life and property. It is social in nature
because it represents the various co-operations of various individuals for
mutual benefits by combining together funds to reduce the consequence of similar
risk.
Simply put, insurance is the placing back of
a person who has suffered a loss in the same position he was before loss
occurred. It aims to eradicate the consequence of a loss by not allowing the
insured to suffer the consequential loss. However, as earlier stated, unless
one meets the requirements of all the basic principles of insurance, he will be
estopped from claiming under an insurance contract.
1.1.0 BACKGROUND TO THE STUDY
Insurance law is reputed for its general
principles, and the principles of indemnity is one of them, others are
insurable interest, utmost good faith, subrogation, contribution and proximate
cause. A principle denotes a general guiding rule, which does not include
specific directions, which vary according to the subject matter.
The basic principles applicable to insurance
law flow from the nature of insurance contract as conceived, many years ago, by
Law Merchants and taken over by the Common Law. The principles are common to
all classes of insurance, both life and nonlife and both marine and non-marine.
By its nature, insurance contract postulates that a sum of money will be paid
on the happening of the insured event by the insurers; however, the event must
be uncertain. The uncertainty related to whether the event will ever happen as
in fire or accident insurance or as in life insurance where death is a
necessary end to all human life, but the time of death is uncertain. In
comparison with other areas of the law, there is no other law, which attracts
the number of general principle s with deep-rooted effect as insurance.
1.2.0 AIMS AND OBJECTIVES OF
STUDY
The aim of this topic is to enlighten the
general public about this area of insurance, which though seem insignificant
yet is the basis of the insurance contract. This topic therefore aims to
consider the position of the insurer as well as the insured. Also, the aims and
objectives of this study is to eliminate or at least to minimize such
misunderstandings by stating the ‘rules of the game’ for the benefit of the parties
taking part in the insurance contract or transaction.
1.3.0 FOCUS OF STUDY
This project focus mainly on the basic
principles of insurance under the Nigerian Law of Insurance, how it affects
insurance policies, how this effects can be minimized as well as a
determination of when an insured is entitled to claim and when he is not based
on these principles.
1.4.0 SCOPE OF STUDY
The scope of this study is within the
Nigerian Law of Insurance. The areas to be covered inter-alia include the
analysis of the basic principles of insurance which consist of
Insurance Interest, Utmost Good Faith,
disclosure and Proposal, form, the Premium Policy, indemnity, Subrogation and
Proximate cause, as it relates to the contract of insurance under the Nigerian
Law of Insurance.
1.5.0 METHODOLOGY
The style to be adopted in this essay will be
expository and narrative. For this essay to achieve its aim, reliance will be
placed on secondary sources of information gathered from textbooks, law
reports, view of jurist, judicial decisions, dictionaries and encyclopaedia on
the subject matter and of course, the internet. It is pertinent to mention that
many articles, journals have not been written in this area of law, the few that
are available will be well utilised.
1.6.0 LITERATURE REVIEW
Though many foreign books did not treat the
topic of this essay in details but one of its concepts insurable interest, most
Nigerian Authors however, lighten the burden of this work with their tactful
treatment of the basic principles of insurance. Important Authors in this
regard include J. O. Irukwu, on Insurance
Law and Practice in Nigeria; Professor Olusegun Yerokun, on Insurance Law in Nigeria and
Funmi Adeyemi, on Nigeria Insurance Law.
According to J. O. Irukwu, the fundamental principles of Insurance
Lawand Practice as applicable to Nigeria are insurable interest,
utmost good faith, disclosure, indemnity, subrogation and proximate cause.
Though Irukwu, on this subject has principles laid down before the now
operating Insurance Act 2003 in Nigeria, some of these principles remains in
conformation with the insurance Act 2003. To make the work an updated are
however, Funmi Adeyemi and Professor Olusegun Yerokun’s insurance text which
contains the prevailing law will equally be used among other materials.
Olusegun Yerokun’s text which is Insurance Law in Nigeria provides a
comprehensive analysis of insurance law in all its aspects. As a result of the
repeal of the Insurance Decree, 1991 and the promulgation of the Insurance
Decree, 1997, and the now operating Insurance Act 2003, the contents reflect
the changes in law. The basic principles of insurance according to Yerokun are
Insurable Interest, Utmost Good Faith, Indemnity, Subrogation,
Disclosure, Premium and Proximate Cause. There
is also the work of M. C. Okany on Nigerian
Commercial Law, which is of the opinion that contracts of insurance
are governed by the general principles of contract but, on account of their
special nature, all contracts of insurance are in addition governed by special
or fundamental principles. These principles of insurance according to M. C
Okany are Utmost Good Faith, Insurable Interest, Indemnity and Subrogation. The
work and contribution of these distinguished authors are acknowledged to be of
great value.
There are also foreign authors who have in no
small measure distinguished themselves and whose works are relevant to this
research, some of these authors are: John Birds on Modern Insurance Law; Opined that the basic principles
of insurance are insurable interest, fraud, Non-Disclosure and
Misrepresentation, Premiums and Subrogation. He is of the view the most
important and reliable is the insurable interest; There is also the work of
MacGillivray and Parkington on Insurance
Law. The General principles of insurance according to them are
insurable interest, premium and subrogation, they never include non-disclosure
and misrepresentation as John Bird. Raoul Colinvaux on The Law of Insurance, includes
indemnity, which makes his none comprehensive than the other two, which is
insurable interest, non-disclosure and misrepresentation premium, indemnity and
subrogation and in addition, Hardy Ivamy ‘General
Principles of Insurance Law will also be consulted. All these
foreign authors in their books are of the opinion that the basic principles of
Insurance are Insurable Interest, Non-Disclosure, The
Premium, Indemnity and Subrogation.
Also, notable judicial pronouncements of the
courts and the opinion of jurists are also relied upon coupled with reference
to various legislations on insurance like the Marine Insurance Act, 1961;
Insurance Act, 2003.
1.7.0 DEFINITION OF TERMS
For proper understanding of this project
topic, there is need to acquaint ourselves with some basic insurance
terminologies.
Risk: In
insurance law, the danger or hazard of a loss of the property insured[3]. In a
contract of insurance, the insurer undertakes to protect the insured from a
specified loss and the insurer receives a premium for running the risk of such
loss. Thus, risk must attach to a policy.
Mitigation of Loss: In the
event of some mishap to the insured property, the insured must take all
necessary steps to mitigate or minimize the loss, just as any prudent person
would do in those circumstances. If he does not do so, the insurer can avoid
the payment of loss attributable to his negligence, but it must be remembered
that though the insured is bound to do his best for his insurer, he is nor
bound to do so at the risk of his life. Insure:
To make sure or secure, to guarantee, as to insure safety to anyone. It also
mean to indemnify a person against pecuniary loss from specified perils or
possible liability4.
Insured: The insured
is the policy-holder who is entitled to indemnity or monetary compensation on
the happening of an event insured against. The insured is also the person who
obtains or is otherwise covered by insurance on his health, life or
property[4].
Insurer: He is the
party who undertakes in consideration of an amount paid to him by the insured
(premium) to pay money to the insured or assured on the happening of a stated
event. Examples of the kinds of insurers we have include, the Mutual Insurance
Association, NICON Insurance Companies Limited, among other[5].
Third Party: There are
two parties to an insurance contract, the insurer and the insured. All others
are strangers to the contract, and are referred to as third parties because
they are not parties to the insurance contract between the insured and the
insurer. For instance, the pedestrian who is knocked down by the insured in a
motor accident is a third party and a stranger to the contract between the
insurer and the insured[6].
Insurance Company: A
corporation or association whose business is to make contracts of
insurance[7].It must also be registered under the Nigerian Law.
1.8.0 CONCLUSION
Insurance is fast becoming a household name
in Nigeria with more persons gradually becoming interested in the subject.
This chapter began with the general
introduction which breakdown the issue in question and tried to see it’s important
or usefulness in helping us to understand the meaning of insurance and also
satisfy our curiosity of knowing what insurance and the basic principles of
insurance is all about.
Though brief, the introduction has tried to
shed light on the importance of insurance to our human race or existence and
definition in place by judicial decisis. It went ahead to states its aims and
objectives of the study. It continued with scope of study, focus of study and
followed by the research methodology which had been stated that is the sources
from which information concerning the project is gotten. The literature review
is not leftout. Also, the research continued with certain terms that the reader
would be coming across in the course of this work. This chapter in its little
way is a form of a steppingstone as to what should be expected in the research
work in subsequent chapters.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following
instructions and information if you will like to order/buy our complete written
material(s).
HOW TO RECEIVE PROJECT
MATERIAL(S)
After paying the appropriate
amount (#10,000) into our bank Account below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
https://projectmaterialsng.blogspot.com.ng/
https://foreasyprojectmaterials.blogspot.com.ng/
https://mypostumes.blogspot.com.ng/
https://myeasymaterials.blogspot.com.ng/
https://eazyprojectsmaterial.blogspot.com.ng/
https://easzprojectmaterial.blogspot.com.ng/
Comments
Post a Comment