The viability of cooperative insurance in nigeria (a case study of first enugu international cooperative insurance).

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The viability of cooperative insurance in nigeria (a case study of first enugu international cooperative insurance).



Without needing to be told, the topic liability of cooperative insurance in Nigeria portends the gross nature of its many facts. The topic is more or loss as open one as most people would  however, the research thought it right to limit the study to the first Enugu international cooperative insurance for the sake of convenience.

The project tries to delve into viability (and hence practicability of cooperative insurance in Nigeria it does this by trying to establish the workability of the statutory requirement cooperative insurance firms must meet before registration. Similarly, the issue of competition in the insurance industry is looked at especially when it concern the big firms already in the industry.

Government intervention in the affair of cooperative insurance is given a look with a view to suggesting ways result can be attained. The cooperative and insurance principle conflict were attempted to be resolved with a view of cross section of to marrying them and channeling them into these exercise sought the view of cross section of respondent who were knowledgeable as regarded the topic. Their view are presented sequentially and is hoped that at the end any one who goes trough thus will appreciate better the concept of cooperative insurance.



  • Background of study
  • Statement of the problem
  • Objective of the study
  • Significance of the study
  • Research hypothesis
  • Scope and limitation of study
  • Definition of terms


Review of related literature

  • Nature of cooperative
  • Definition of cooperative
  • Historical development of insurance
  • Definition of insurance
  • First Enugu international insurance cooperative as cooperative insurance
  • How insurance works
  • Cooperative insurance function
  • Cooperative as a financial institutions to the cooperative
  • The cooperative insurance market in Enugu state
  • Cooperative insurance principle
  • First Enugu international cooperative law and rule
  • Establishment and aims of cooperate insurance economic system
  • First Enugu international cooperative insurance economic system
  • Distinguishing factors between cooperative insurance and mutual insurance company


Research design and methodology

  • Research method used
  • Population of the study
  • Sample size
  • Description of respondent
  • Sources of data
  • Procedure in gathering data
  • Treatment of data


Data presentation

  • Analysis of data
  • Interpretation of data


Summary of findings

  • Conclusion
  • Recommendation









The economic framework of the country is not properly structured to effectively make life comfortable for all members of the insurance industry to day could be more responsive to the yearning of the country than a study on the possibility of developing a functional cooperative insurance in Nigeria. In this angle the insurance courage need to be extended to our cooperative society in order to protect them from dangers that might occur in the process of carrying out their activity or lay natured disaster that would upset the cooperative.

This happen when the resource of individual are pooled to gather for management and self security, which is the noble function of cooperative insurance.

Cooperative insurance in Enugu state, the research want to know what limitation and problem that has caused this steady viability of cooperative insurance in the first Enugu international. Also device ways that member will easily be reached that is , the best channel of communication method that will  be able to customers at the right time an date right place.

Note that, this steady viability of cooperative insurance has some effect on member as well as the society at large. Data says that the insurance of risk of member goods and their dependant have led to loyal increase of member. Thus leading to increasing of members moreover, this steady increase of this cooperative insurance has made them to meet up with their objective is set out to attain some designated objective.


In this section, the researcher focused on the prevalent problem that has led to viability of cooperative insurance in Enugu metropolis. These problem militating against the increase of member goods and dependant in Enugu metropolis are as follows:

  • Poor service renders b the middlemen
  • Poor economy of the nation
  • Poor quality and lower quantity in the market of member’s goods
  • Lack of promotion on most of their member product
  • Inadequate information
  • Member poor marketing strategy used as against their competitors
  • Decline on effective and efficient management


The objective that made the researcher go into this topic are as follows:

  • To find out how insurance facilitate the well being of members of the cooperative society
  • To discover if insurance works in a cooperative society
  • To find out (investigate) if there is relationship between insurance and increased performance productivity
  • To make suggestion and recommendation that could be useful in solving the identified problems


The significance of this study is to achieve a great success in contributing the little the research can, most importantly the significance of this study:

  • Is to discover how intricate insurance can better the lots of members of cooperative societies
  • The research will stem from the fact that insurance is a pool of risks in other words, the researcher is attempting to add little feather to the existing works in cooperative insurance
  • Finally, though the researcher restricted the study to Enugu state, and insurance, the result of the finding will be of immense benefit to all cooperative insurance in Nigeria, as well as student conduting similar research work on the same topic or related ones.


If this study is to achieve objective it must answer the following questions.

  • How can one assess the overall development of cooperative insurance?
  • How can one collaborate the insurance principles to cooperative principle?
  • Can one consider the viability of cooperative insurance as an important factor?
  • Can the viability of cooperative insurance contribute positively to the out put of cooperative organization?

In a study of this nature, one would like to accumulate data from any areas but, in view of length of time allowed for this research, such a wide range sample study was almost external difficult. The researcher, there fore, concentrated his field work in Enugu metropolis. The choice of Enugu metropolis was based on the time factor allowed and upon practical consideration including the fact that the research knows almost everything about Enugu metropolis.

Besides, there were many other problems that stemmed up during the research working which some of them are as follows:

Financial constraint

As a student, there was not enough capital to spend in transport and fact finding and borrowing of necessary literature that would have helped in the writing of this research work.

Management constraint

The respondent, especially the chairman, did not cooperative as was expected. Also the staff and members were as well reluctant in answering some question asked.

This entire problem not withstanding, did not prevent the continuation the research work.



The I.C.A denied a cooperative as an autonomous association of person united voluntarily to meet their common economic, social and cultural needs and aspiration through a jointly owned and democratically controlled enterprise”


Insurance as a device for reduction of uncertainty of one party call the insured through the transfer party called the insure who offer a restoration, at cast in part of economic losses suffered by the insured.

The essence, if insurance lies in the elimination of the uncertainty or risk of loss for the individual through the combination of large number of similarly exposed individual.

Insurance is an arrangement by which one party (the insure) promise to pay another party (insured or policy holder) a sum of money if something should happen which causes insured to suffer a financial loss.

The uncertainty of loss

Theme is the element of uncertainty because of the inability to foresee all the result of cooperative action and the result that action can be against the interest of the actor leading the interest of the actor leading to a loss.

Uncertainty of no loss

These would see to render uncertainty of loss as definition not quite operational “gain” is only a graduated from of no loss. The issue, therefore, can be said to that loss or of no loss. The issue, therefore can be said to be that loss or no loss it is the uncertainty of “no loss iteration that is the problem underlying this uncertainty of no loss is fifing cooperative of he statement chance of loss

Insurance warranty

Marine insurance act 1961, section 34 (1) defines a warranty as “a promissory warranty, that is to a warrantee by which te assured undertakes that some particular thing shall or shall not be done, or that some condition shall be fulfilled, or where by affirms or negatives the existence of a particular state of facts.

Insurable interest

Insurable interest loss being defined as “the legal right to insure” this definition is important because a person cannot wave a binding insurance contract without being in possession of insurable interest.


This is the monetary compensation given by an insurer to an insured following a loss caused by an insured risk. It has been said to be restoring the insured after a loss to the some financial position in which we was immediately before the loss.


Subrogation is defined as the exercise, for ones own benefit, of rights or remedies possessed by another against third parties – if the rights or remedies have already been exercised subrogation entitles one to the proceeds there from.


According to steel, element of insurance study course. II CII textbook London, chapter 5 page 5:

Contribution is the right of an insurer to call upon others similarly but not necessarily equally liable to the same insured to share the cost of an indemnity payment.

Proximate cause

In paw say U. Scottish union and national (1907), proximate cause was defied as follows:

“Proximate cause means the active efficient cause that sets in motion a train of event which brings about a result without the intervention of any force stated and working actively from new and independent source?

Proposal forms

A proposal form is a document which is drafted by the insurer and which seek answers to the main material aspect of the risk it is a questionnaire designed to elicit material information pertaining to the risk to be insured.

Policy forms

The policy is a document produced by the insurer which set out the terms of the contract.


The premium is the monetary consideration passing from the insured to the in serve for their undertaking to pay the sum insured in the event of the risk insured against happening.


Most non life insurance are usually contracted for a period of one year at the end of this period, the insurance lasepes unless it is renewed before the expiry date. the parties to the insurance contact nay, however, mutually agree to renew the policy.

Utmost good faith (uberrima fides)

Utmost good faith means that each party to a proposed contract is legally obliged to renewal to the other all material facts which will influence the others decision to enter into the contract, whether  such information is requested or not. The parties to the contract are required to tell the whole truth and nothing but the truth about the proposed contract.

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