This research work focused on the Marketing of Motor Insurance in Nigeria; the problems facing and hampering smooth marketing of the policy in Nigeria, as well as motor insurance has in Nigeria. The motor insurance is one of the compulsory insurance in Nigeria (third party) under section 68 of Insurance Act 2003. The motor insurance marketing has been facing various challenges ranging from the issuance of fake certificate by much room cooperative societies and unfaithful insurance Agents and Brokers. In an attempt to solve the problems identified, the objectives of the research work was outlined which includes to examine the problems facing motor insurance marketing in Nigeria, to ascertain the effect of unethical practice of insurance intermediaries and others. Upon the stated objectives, the research questions were formulated. The researcher pointed out the significance of the research work as well as the scope and limitation of the study. Literatures relating to the topic under discussion were reviewed and the research methodology explained which show that the primary data and secondary data are the two major sources of data, the population and sample size wee obtained. The instrument used for data collection and investigation is the questionnaire. The researcher following the analysis and presentation of data collected were able to find out that motor insurance marketing has been facing various challenges and that governments are not doing well in enforcing compulsory 3rd party insurance. Following the finding, conclusions and recommendations for the way forward were made by the researcher.





Loses and risks are inevitable but human societies have created novel ways of reducing the burden of loss, the most effective being insurance.

Insurance is a means whereby a person pays some of money called premium in order to indemnify self against loss of a belonging with much more than the premium. When the belonging being indemnified is the motor vehicle, such insurance is called motor insurance or vehicle insurance. In Nigeria, there are two types of motor vehicle insurance offered by most insurance companies in Nigeria namely third party and comprehensive cover.

One of the major requirement to drive on Nigerian roads is the possession of a minimum of third party motor insurance certificate. Section 68 of the 2003 insurance Act states “No person shall use or cause or permit any other person to use a motor vehicle on a road unless a liability, which he may thereby never in respect of damage to the property of third parties is insured with an insurer registered under this Act”.

However, most of the vehicles in the country either ignorantly in out of consciousness have continued to carry fake certificates about. The National Insurance Commission has said that over 70 percent of vehicles on Nigeria roads are in possession of fake insurance vehicle certificate and this was attributed to ineffective motor insurance marketing in Nigeria.

The motor insurance marketing in Nigeria has been on the back logged because of various factors which are generally problems facing the insurance industry in Nigeria which are delayed settlement of genuine claims, low level of regularly compliance; absence of new products, delayed remittance of premium by intermediaries, in road of banks into the industry moral hazards and sharp practices, government’s policy inconsistency, weak regularly measures, illegal commission and rebates, etc. This research work is designed to examine the marketing of motor insurance in Nigeria, problems facing it and the prospect.


  1. The delay in remittance of premium by intermediaries to the insurance companies.
  2. Government’s policy inconsistency; which results in the general public not knowing the suitable cover for a particular vehicle.
  3. Delayed settlement of genuine claims by the insurance companies.
  4. Absence of new products. The insurance industry has failed to design products that will suit the economic conditions of Nigerians who own vehicles.


  1. To examine the problems facing the marketing of motor insurance policy in Nigeria.
  2. To find out the effect of delayed/non-remittance of premium by intermediaries on the motor insurance marketing.
  3. To ascertain the role of government and NAICOM in regulating and monitoring motor insurance business.
  4. To know the implication of improper/inadequate product/new product development by the insurance industry in the development of motor insurance in Nigeria.


  1. Does delay in remittance of premium by intermediaries to the insurance companies have impact on the marketing of motor insurance?
  2. What is the effects of inconsistence of the government policy on the motor insurance marketing in Nigeria?
  3. Why is the insurance industry not encouraged to innovate products on the motor insurance policy to hence the consumer patronage?
  4. What are the roles of National insurance commission in regulating the premium charge on the motor insurance business in Nigeria?
  5. Do delay claims settlements of genuine claims by the insurance industry contributes to the general public apathy on the insurance marketing in Nigeria?


The significance of the research work is largely based on the identified objectives which the research is aimed at solving. The research work is of specific importance to all stakeholders in motor insurance in Nigeria, which includes; the policyholder, government, insurer, the general public, the intermediaries, the investors and students at large.

The research work is of great important to the general public (3rd party) in that it will enable them know their right, against the insurance company and policyholders when they sustained injury, damage to properties caused by the vehicles.

The study will also expire ways by which the insurance company and the policyholders will improve on the operation of motor insurance business in Nigeria and also identify the best channels of distribution of the various types of motor insurance cover/policy.


This study examines “The marketing of motor insurance business in Nigeria; problems and prospects, taking Industrial and General Insurance Plc as a case study.

In the course of carrying out this research work, the researcher encountered various challenges, they include the following:-

  1. Paucity of Fund: Due to the inadequate funding of this research work, the researcher could not be able to extend the scope of the coverage to other insurance companies in Enugu state.
  2. Dearth of Statistical Data: The field aspect of the work required the administration of questionnaire, some of the respondents declined to respond to the questions asked due to the industrial espionage, and the adequate information are not available on the motor accidents in Nigeria and its affected the outcome of this research work.
  3. Time: The research work was limited by time, as there is not enough time to carry out accurate research work.


Abandonment: The act of giving up the ownership of something covered by an insurance policy and treating it as if it has been completely lost or destroyed.

Advertising: A communication that is paid for by an identified sponsor which the object of promoting ideas, goods, and services.

Boom: The part of business cycle that follows a recovery, in which the economy is working at full capacity.

Breach of Contract: A failure by a party to a contract to perform the obligations in the contract or an indication of an intention that a contract will be breached in the future is called repudiation or an anticipatory breach;

Cancellation: The right to cancel a commercial contract after it has been entered into.

Certificate of Insurance: A certificate giving abbreviated defeats of the cover provides by an insurance policy.

Damages: Compensation, in monetary form, for a loss or injury, breach of contract, fort, or infringement of a right.

Indemnity: An agreement by one party to make good the losses suffered by another, usually by payment of money, repair, replacement, or reinstatement. Motor Insurance Policies

Marketing: The process of planning and executing the conception, pricing, promotion, and distribution of ideas, products, and services to create exchanges that will satisfy the need of individual and organizations. Motor Insurance Policies

Paid-up-policy: An endowment assurance policy in which the assured has decided to stop paying premium before the end of the policy term. Motor Insurance Policies

Penetration: The extent to which a product or an advertisement has been accepted by, or has registered with, the total number of possible users. Motor Insurance Policies

Policy: An insurance policy is a document that set out the terms and conditions of an insurance contract. Motor Insurance Policies.


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