1.0 HISTORICAL BACKGROUND

There exist risks in all forms of business organization since there are many factors over which man has no power. Man cannot control for example, the force of nature or some of the conduct of their human beings.

Infact, all human endeavours has its attendant risks and hazard and one would wants to cover himself against these hazards hence this process is generally known as insurance.

The probability of these risks can be calculated mathematically and it is against these background that insurance can be effected. Insurance is based upon the polling risk. There is a common fund called premium to which the insured contributed to an it is from these that payment is made to those who suffer loss.

The Gateway Insurance Company Plc was established by the Kwara State Government in 23rd September 1970 about two decades ago as a limited liability company. The company is licensed to transact all classes of insurance including accident, life and pension when it was fully incorporated.

The company was formerly owned by the Kwara State Government but due to the creation of new state with some parts of old Kwara State created as Kogi state and some part also given to Niger state, the share capital is now owned by the three state governments with Kwara State having the largest share. Also some local government in the state has share in the company.

According to Mr. A. Toyosi, the secretary to the Deputy General manager, Administration, the company has almost completed its process of privation and its shares will soon be in the markets for sales. When the company started operation in 1970, it has only three branches with the headquarters at Ilorin and other branch offices at Lagos and Kaduna.

But as at today the company now has about 17 braches offices spread all over the country with a competent and highly skilled staff strength of abut 200 which makes it one of the leading insurance company in Nigeria. Among the reason that motivated the old Kwara state to set up the company was that it will help to generate additional revenue when the state was newly created in 1967. Since its establishment, the company has not only being meeting the aspiration  of the state government but it has also improved the social and economic life of the people of the state and Nigeria as a whole. The company is also rendering excellent services to various business organization against unexpected losses.

1.1 AIMS AND OBJECTIVES

The aims and objectives of carrying out this project work are the following:

1. To find the effect of commission charged on sum assured of the company and the rate percent charged on the various policies of the company.

2. To find the rate at which people insure their properties e.g. life insurance, marine insurance, fire insurance e.t.c

3. To find which insurance policies has the largest number of customers with respect to sum assured and commission received.

4. To make prediction on sum assured on various policies for the future to determine the market trend/sales

1.2 ACHIEVEMENT OF THE COMPANY

Since the company started operation over two decade’s age, it has made an outstanding progress which makes it one of the leading insurance companies in Nigerian.

Although the company was authorized to transact all insurance business when established but this could not be achieved as a result it some problems ganging from inadequate skilled personnel, limited capital and other related problems. 

Since there has been significant improvement in its services, the company is now waxing stronger by transacting fully all classes of insurance. This can be as a result of the skilled personnel and experts in insurance business now employed by the company.

The classes of insurance business transacted by the company includes life policy personal scheme. Other are the non-life assurance business like, motor, fire and special perils which covers tornado, rainstorm, flood, policies in the Gateway Insurance company also covers Goods interansit, marine, personal accident guarantee, cash interansit and Burglary.

There is the other new insurance business the company is going into called Engineering Insurance which covers machinery-breakdown. Also due to the different location of its customers. The company has established about 17 branches spread all over the country with a capital base of over N2million.

1.3 THE PRINCIPLES GUIDING INSURANCE BUSINESS

The principles guiding insurance business in Gateway Insurance company generally, which however accounted for its leading role in insurance business are the following:

i. PRINCIPLE OF INDEMNITY: Under this principle the insurance company tells the assured that he/she would be compensated if any loss or damage occur to him so that he will not feel the impact of such loss.

ii. PRINCIPLE OF SUBROGATION: This is the principle where by the insurance company gives the customer law that he should make sure that another person does not use the property insured with them such as motor car, radio tape e.t.c 

iii. PRINCIPLE OF UTMOST GOOD FAITH: this is the principle of insurance where the assured are warned as seriously on the risk inherent in telling lies during the investigation which is likely to be carried out by the company when a customer suffers any loss.