Assessment of Economic Benefits of Fire Insurance on Commodity Markets in Nigeria

International Journal of Research and Innovation in Social Science (IJRISS) | Volume II, Issue V, May 2018 | ISSN 2454-6186

Assessment of Economic Benefits of Fire Insurance on Commodity Markets in Nigeria

Momoh, Omowumi, Ayoni¹, Ajiboye, Lawrence Oluwasanmi²

¹Department of Insurance, Faculty of Financial Management Studies, The Polytechnic, Ibadan, Oyo State, Nigeria
²Department of Insurance, Faculty of Financial Management Studies, The Oke-Ogun Polytechnic, Saki, Oyo State, Nigeria

Abstract: – Fire insurance is an effective tool in the mitigation of fire risks in Nigeria. This paper therefore examines the economic benefits of fire insurance on commodity major markets in Nigeria.Few large markets within Ibadan, Oyo State Capital were selected for this study. It was discovered that most of the shop-occupiers at those markets were ignorant of the meaning and importance of fire Insurance. The paper further investigated major causes of fire in the market, its effect on the individual shop occupiers and the business, the level of insurability of the shop occupier and the economic benefits of fire insurance. 500 questionnaire were administered on the randomly selected occupants but only 472 questionnaire were returned. Chi – square was used to analyze the data collected along with the degree of freedom under the level of significance of 5%. Findings indicated that the fire outbreak has effects on the occupants business to the extent of closing down or losing some of their customers. It is therefore recommended that fire insurance should be made as part of the compulsory insurances in Nigeria so as to reduce the economic burden of losses on the occupants and government. Effective and adequately equipped fire brigade should be assigned to protect markets against fire incidents.

Keywords: Fire, Fire Insurance, Fire outbreak, Occupants, Shop-Occupiers.

I. INTRODUCTION

Nigeria has been globally acknowledged an economic giant not deploying its potential towards economic growth and development. The country is also made up of many urban cities with economic power and a market size bigger than some countries in Africa (Taiwo, 2017)

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