ROAD TRANSPORT RISKS' IMPACT ON THE PAYMENT OF CLAIMS IN THE NIGERIAN INSURANCE SECTOR

This study investigates the impact of road transport risks on claims handling in Nigeria's insurance sector. Vehicle collisions occur as a result of various driving behaviours and other factors, making motor vehicle insurance necessary to cover losses, damages, or injuries. The occurrence of dangers associated with motor mobility has been identified as a primary cause of death in Nigeria.

The study adopted an ex post facto research design and relied on secondary data obtained from the Central Bank of Nigeria (CBN) Statistical Bulletins, the Nigeria Insurance Association (NIA), and the National Insurance Commission (NAICOM) Annual Reports covering the period from 1981 to 2024. Econometric analyses conducted in the study include descriptive statistics, correlation analysis, and autocorrelation tests, while the research hypotheses were tested using p-values derived from multiple regression results.

The findings reveal that the premium costs associated with covering road transport risks are negligible, whereas claims payments for road transport risks, specifically motor vehicle and general accident protections, have a significant combined influence on total claims payments in the Nigerian insurance industry. Based on these findings, the study recommends that the government should more strictly enforce the purchase of vehicle insurance policies, as this would increase premium contributions for road transport risk coverage and enhance compensation for victims of such incidents.