THE ROLE OF INSURANCE IN THE PETROLEUM INDUSTRIES IN NIGERIA
ABSTRACT : This project deals with the role of insurance in the petroleum industries in Nigeria. The economic recession which begin in 1981 is highly correlated to the decline in the average selling price of out due to recession in the world economic situation and oil glut in the international oil market. In order to avert the current recession in the economy. There is an urgent need to diversify the economy. Particularly to more meaningful expansion of the petrochemical, agricultural and steel industries. The role of oil therefore appear limitless as there can be no meaningful diversification of the economy without the use energy. Therefore, the development of the other sectors is more or less dependant on the oil industry. The aim of this research work therefore is to examine the activities of the oil producing companies operating in Nigeria, review the various policies of insurance covering the various exposures in order to determine the role played by insurance in the industry. To examine if the existing protection provided by the insurance industry is adequate and make recommendation for necessary improvement. The research is divided into five chapters. Chapter one deals with the introduction and a brief history of the operation at the oil producing and petrochemical companies and the scope of study and definition of terms. Chapter two deals with the literature review as they relate to the topic of study, while chapter three dealt on research methodology sub-divided into sources of data and method of investigation chapter four dealt on the analysis of data which was collected by interview while chapter five summarizes major findings, conclusion and recommendation as well as advice on further area of research.
Udokoro Chinweokwu S.
Department of Insurance
IMT, Enugu
TABLE OF CONTENTS
Title Page i
Approval Page ii
Dedication iii
Acknowledgment iv
Abstract v
Table of Content viii
CHAPTER ONE
- Introduction 1
- Statement of Problems 4
- Purpose of Study 6
- Significance of Study 7
- Scope of Limitation of Study 8
- Definition of Terms 9
CHAPTER TWO
- Literature Review 12
- History of Oil Petrochemical Industry 12
- Types of Drilling Burgers/Platforms 14
- Drilling Operations and Costing 17
- Pollution 17
- Petrochemical Hazards 17
- All Risk Offshore Policies 20
- Blow-out Preventer Warrant 23
- Liability Insurance 24
- Workmen Compensation 29
- Fire Business Comprehensive 31
- Commercial Vehicles/Heavy Equipment 33
- Insurance of Money 34
- Motor/Private Cars Comprehensive 38
- Group Personal Accident 38
- Claims Experience, Reporting and Accessing 39
References 41
CHAPTER THREE
3.0 RESEARCH METHODOLOGY 42
- Sources of Data 42
- Primary 43
- Secondary Sources 43
- Method of Investigation 43
CHAPTER FOUR
4.0 PRESENTATION AND DATA ANALYSIS 45
CHAPTER FIVE
- Summary of Major Findings 57
- Conclusion and Recommendations 60
Appendix “A” 64
Bibliography 66
CHAPTER ONE
1.1 INTRODUCTION
Before independence and shortly after, Nigerian depended solely on agricultural commodities for her foreign exchange earnings. The oil boom in the 70’s led to Nigeria economy becoming an oil economy with the resultant neglect of the agricultural sector. The boom attracted many oil producing companies
