Claims Settlement and Risk Attitudes: Evidence from Selected Motor Insurance Policyholders in Lagos State, Nigeria


  • Sunday Stephen Ajemunigbohun Lagos State University
  • Folake Feyisayo Olowokudejo University of Lagos
  • Mfon Sampson Ukpong University of Uyo


Claims settlement; risk attitudes; motor insurance policyholders; rational choice theory; Nigeria


Claims, being the heartbeat of the workability of insurance, are the most critical contact influencer
between the insuring public and the insurer. It serves as a critical path to truth that shapes the policyholders’
ultimate perceptions of their insurers. Therefore, this study aimed at evaluating the relationships between
claims settlement and risk attitudes, with specific reference to motor insurance policyholders in Lagos,
Nigeria. The study adopted a cross-sectional survey research design. The study population consisted of the
total number of registered motorists recorded in 2019 by the Motor Vehicle Administration Agency to be
704,828. Thus, quota and convenience sampling methods were adopted in the questionnaire distribution and
collection processes. A structured questionnaire was employed for data gathering. A total of 399 copies of the
questionnaire were distributed, of which 287 were found usable which represented a 72% response rate. The
data procedural technique employed were simple frequency percentages and the multinomial logistics
regression method. The finding affirmed that claims settlement was significant in attracting reasonable risk
attitudes from motor insurance policyholders. This study recommended that motor insurance providers should
put in place fascinating claims packages in order to boost the confidence level of the motoring communities.
Government should rejuvenate and empower the motor insurance public complaint commission to address
issues relating to motor insurance claims of either party in the motor insurance contract. Given the
implications of this study, future research work could direct attention to insurance fraud issues emanating
from the insurance claims settlement manual.

Author Biographies

Sunday Stephen Ajemunigbohun, Lagos State University

Department of Insurance, Faculty of Management Sciences

Folake Feyisayo Olowokudejo, University of Lagos

Department of Actuarial Science and Insurance, Faculty of Management Sciences

Mfon Sampson Ukpong, University of Uyo

Department of Insurance, Faculty of Business Administration


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Dissertation submitted to the School of Graduate Studies, ST. Mary’s University, for the award of Master’s Degree in

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