Claims settlement and sales of insurance products in Uganda the case of national insurance corporation ltd (NIC)

Abstract

Claims settlement, which dates as far back as the history of insurance, is the only reason the consumer (insured) buys an insurance product. The fast administration of Claims is therefore not only a legal obligation of an insurance firm, but also a strong public relations and marketing strategy. The response to claims has rather been slow in Uganda and this is of great concern, since a thriving economy depends to a large extent on the guarantees and assurances received from insurance companies. This research investigated the trends in National Insurance Corporation Limited’s claims settlement system and sales of its insurance products. The objectives of the research were; to assess claims settlement factors that enhance sales of insurance products at NIC, to evaluate the challenges of claims settlement and sales of insurance products at NIC Uganda and to recommend claim settlement strategies that can improve sales of insurance products at NIC. Data collection was conducted by administering questionnaires to both customers and staff of the company. The results obtained from the data collection were cross tabulated and subjected to descriptive analysis. The results obtained established the fact that prompt and satisfactory claims payment had positive effects on the sales of insurance products.