RELEVANCE OF INSURANCE POLICY IN DISTRIBUTION AND TRANSPORTATION
ABSTRACT
The essence of this research is to ascertain the relevance o insurance policy in distribution and transportation with particular reference to Nigeria Bottling Company PLC, Owerri. The study is broadly divided into five chapters. The chapter one comprises of the introductory aspect of the work, it identifies the statement of problem, purpose of the study, research question and hypothesis, significance of the study etc. The chapter two is made up of a review of literature related to the topic. It encompasses insurance, types of insurance doctrine of insurance, marine insurance and types, marine insurance losses etc. The chapter three states the research methodology, it expresses how data were collected, sorted and used in the research work.Chapter four is the presentation and analysis of research/data carried out and result documented. Chapter five which is the last contains the summary, recommendation, conclusion and bibliography.
CHAPTER ONE
1.0 INTRODUCTION
In any organization or industry involved in distribution and transportation, insurance policy is very inevitable as it protects the organization from uncertain occurrence in the course of distribution and transportation.
The relevance of insurance policy in distribution and transportation will no far fetch help an organization involved in the need to minimize and eliminate risk that are certainly involved in distribution and transportation.
For the fact that the natural instinct to survive is embedded in man, he reacts to avert such dangers threatening the successful movement of goods, this is applied to organizations involved or that are into distribution and transportation. This calls for an insurance policy. In addition, when goods are carried from one place to another, they are exposed to risk such as cargo loss, damages, delay etc.
According to Nweke (2000: 307), he sees insurance as a device aimed at reducing the extent of its damages and providing the affecting persons with compensation. The insured is indemnified when put in the position he was before the occurrence of the risk.
Insurance policy, as it relates to distribution and transportation, the specified extend must have some element of uncertainty about it. The uncertainty may be either as in the case of life insurance in the fact that the happening of the event depends upon accidental causes. An insurance may be further defined as a contract where by or person called the “INSURER” agrees in consideration of money paid to him (Premium) by another person called “INSURED” to pay certain sum of money or its equivalent on the happening of a specific event.
Distribution and transportation is faced with legion of risk that require proper management if it is to be successful.
1.1 BRIEF HISTORY/ BACKGROUND OF THE STUDY
The Nigerian Bottling Company (NBC) was incorporated in November 1951, as a subsidiary of the A.G. Leventis group with the franchise to bottle coca – cola products in Nigeria with their headquarter at Ikeja Lagos state.
The Owerri plant which the researcher’s focal point was established in the year 1982 and is located along the Owerri – Onitsha road, off control post round about. They produce series of soft drink ranging from coca-cola, sprite, fanta orange, fanta tonic, club –soda, krest-bitter – lemon, five – alive, Eva water etc
The company does not have a centralized purchasing department but operate a decentralized system of purchasing.
The company sales coverage in Imo state comprises Owerri, Orlu, Okigwe, Mgbidi, Mbaise, etc. the products are distributed through the types of distributorship system. These groups called first class, while the second group is appointed by the branch plant manager as second class distributors. Under normal conditions, the plant produce an average of about thirty thousand (30,000) centres of minerals per day and its operations are based on two shifts.
