| dc.description.abstract | The study examined the impact of insurance premium and investment on the insurance firm’s
ability to indemnify its clients. The study objectivities were to; examine the effect of total
Premium collected on indemnity of NIC Customers, find out the effect of nature and type of
investment of premium on indemnity in NIC, establish the effect of the types of insurance
policies offered by NIC, on indemnity in NIC and determine the effect of age of the insured on
indemnity of NIC clients. A case study design was used and data was collected from a sample of
50 respondents, self-administered questionnaires; interview guide and documentary review guide
were used in the study.
Findings from the study indicated that total Premium collected was used to lower the overall
costs, to underwrite losses so as to remain competitive and survive in the insurance market and to
buy shares in listed companies with a view of getting dividends. It was also exposed that
premiums collected led to financial viability of NIC and provided coverage for losses that could
arise many years in future.
From the study it was concluded that Investment of premiums had led to financial viability of
NIC, had maintained the solvency of a life fund and provided coverage for future losses that
might arise. It was discovered that premium investment led to the ability of NIC to settle its
claims with considerable ease, honour its indemnity obligations, foot its overhead costs and
make a profit. It was exposed that National Insurance Corporation offered various insurance
policies which included health insurance policy, life insurance policy, disability insurance policy,
homeowner’s insurance policy, renter’s insurance policy and auto - insurance policy. To add to
the above, the study revealed that age of the insured had a great impact on indemnity of NIC
clients whereby age of the insured enabled the determination of insurance demand, it played an
important role in determining adequate life insurance coverage and eligibility of the insurance
considered age as an important factor.
Finally, it was recommended that the organizational management should introduce other
insurance policies that are needed by clients in order to increase on premium collected, the
premium collected should not be kept idle on the insurance premium account to await claims
being lodged and they should be pro-active and forward-looking and should invest this money
through creating a float | en_US |
