A Qualitative Study of Insurance Law and Practice in Nigeria (1960 – 2015)

Abstract

This study evaluates the practice and extant legal framework for insurance in Nigeria. The objective of the study was to determine how the development of insurance practice has impacted on the economic growth and development of Nigeria. The provisions of every legislation affecting insurance practice in Nigeria between 1960 and 2015 were critically examined. In order to justify the place of law in the development of insurance practice in Nigeria, references were made to relevant legal frameworks of advanced jurisdictions such as the United Kingdom and the United States of America.

The study adopted a qualitative research methodology that ensures a critical appraisal of primary and secondary sources of data which, for the purpose of this study, are the provisions of all legislations affecting insurance practice in Nigeria, including relevant literature and jurisprudence. The data obtained from these sources was critically analyzed in order to determine the state of insurance practice in Nigeria and make appropriate recommendations.

From the study’s findings, legal framework for insurance practice is essential to economic growth and development of every nation. Nigeria has recognized this fact hence the efforts at enacting various insurance legislations since formal insurance practice was introduced into the country at the beginning of the twentieth century. Also, the extant legal framework for insurance practice in Nigeria protects policy-holders to a large extent and ensured professionalism and international best practices in the insurance industry. Accordingly, insurance practice in Nigeria has improved over the decades and has made positive contributions to economic growth and development of the country.

However, the extant legal framework for insurance practice in Nigeria also suffers from some inadequacies which can impede its capacity to drive economic growth and development of the country. Therefore, the study made recommendations towards a more effective legal framework that can foster rapid economic growth and development of Nigeria. The recommendations made include: effective enforcement of the provisions of the extant legal framework for insurance practice in Nigeria; amendment of some key provisions of the extant legal framework; statutory incorporation of all common law principles of insurance contract; addressing the undue statutory interference of the National Insurance Commission, and; stripping insurance practitioners of regulatory powers in the practice of insurance in Nigeria.