Motor Insurance Policyholders’ Satisfaction with Claims Handling Process in Ekiti State, Nigeria: An Empirical Exposition

Abstract

This research sought to assess motor insurance policyholders’ satisfaction with the claims handling process in Ekiti State, Nigeria, focusing on loss notification, investigation, and claims settlement attributes. The research design for the study was a cross-sectional survey. The population of the study comprises all 30,322 registered motorists documented by the Ekiti State Motor Vehicle Licensing Office in the year 2021. A sample size of 395 was calculated using Taro Yamane’s formula. Primary data was collected using structured questionnaires. The distribution and collection of questionnaires were done through convenience sampling methods. 395 copies of the questionnaire were disbursed to the respondents, out of which 382 representing a 97% response rate were found useful for analysis. The acquired data were analysed using descriptive and inferential methods in R software. The descriptive analysis results established that a higher percentage of respondents were not satisfied with the claims handling process, while Friedman’s rank test result established the significance of motor insurance policyholders’ satisfaction with loss notification, loss investigation, and claims settlement attributes among selected motorists in Ekiti State, Nigeria. This study recommends that motor insurance providers should redesign the claims handling process to remove bottlenecks and encourage policyholders to access claims, as this will improve the insured's level of satisfaction with the insurer's claims activities.