BACHELOR OF BUSINESS ADMINISTRATION (BBA)

ACCOUNTING OPTION

GYAMFI BRIGHT AKWASIINDEX NO: 211BS01000076

A CASE OF STUDY SIC Life INSURANCE COMPANY

Techiman Branch

Risk may be defined as the possibility of adverse results flowing from any occurrence. Risk arises therefore out of uncertainty. It can also represent the possibility of an outcome being different from the expected, this brings to mind the concept of risk protection which insurance is all about.

The proliferation of insurance companies in Ghana recently, seems to be an opportunity for provident individuals and groups to contribute monies to various

schemes as a means of risk protection.

Currently in Ghana, "Insurance practice has become like selling tomatoes at the marketplace where the buyer tells you, I will give for example GH¢20 and then the insurer says okay I will accept GH¢10," Mr. Ebenezer Allotey, Managing Director of Prime Insurance Company Limited, a private company, told the Ghana News Agency in an interview.

Michael Rowland ,the Director of Strategic Planning defines Insurance as a promise of compensation for specific potential future losses in exchange for a periodic payment. Read more: http://www.investorwords.com/2510/insurance.html#ixzz288cQSrcO .

Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss. Some forms of insurance are required by law, while others are optional. Agreeing to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange for payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum of money upon the occurrence of a specific event .

In Ghana, there are various types of insurance packages, notably amongst them are;

• Fire Insurance Policy• Theft Insurance Policy• Motor Vehicle Insurance Policy• Accident Insurance Policy• Life Insurance policy .

For the purpose of this Dissertation, Life Insurance will be the main subject with respect to the State Insurance Company (SIC Life -TECHIMAN BRANCH). Life insurance is defined by Abbots ,K.R. and Perdlebury .N. (1995), as a contract between the insurer , where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individuals or death or other events such as terminal illness or critical illness.

According to the National Insurance Commission website http://www.nicgh.org, there are 17 life insurance companies licensed to operate in the country. The life insurance policy they provide to the public are in different classes like :Universal Life, Funeral, Whole Life, Endowment, Term and Group Life .

• What measures have insurance companies put in place to influence the demand for life insurance policies?

• Are the insurance premiums affordable ?• Are the insurance claims paid to beneficiaries sufficient

enough to offset any expenses and losses incurred by the beneficiary and to live a normal life as proposed by the objectives of the life insurance policy ?

• To assess the efficacy operation of life insurance policy undertaken in Ghana.

• To identify the various types of life insurance policy undertaken by SIC –Ghana

• To assess the kind of procedures , methods or criteria used in paying premiums to beneficiary.

Help the researcher to know and understand the new trend of activities in the Insurance industry

Serve as a reference point for other researchers, who may want to research for a similar

Findings of this study will help and guide the management of the insurance company (policy makers) to improve upon the policies.

Provide the frame of general knowledge to all readers (policy takers and non policy takers)

Both Primary and secondary data sources will be used in undertaking this academic exercise. The primary data will be ascertained through the use of (100) questionnaires which will be designed and sent over to staffs at the SIC Life Insurance office in Techiman, some beneficiaries as well as the general public.

The secondary data source will be gotten from the internet, text books, newspapers and other thesis on similar topic.

Cost of undertaking the research activity posses a limitation to the researcher, since the researcher is a student and not on any means of salary.

Time factor will be another limitation for the study, since the researcher must combine his normal academic work with undertaking this time consuming project.

Bureaucracy in soliciting for the necessary information to help ascertain the true objective of this study is another limitation.

This study will comprise of 5 chapters Chapter One (1) :Gives a general background of the

whole research work, taking into account the statement of problem, significance of the study ,the methodology to ascertain all relevant information and the organization of the study.

Chapter Two (2):Provides the literature review on life insurance.

Chapter Three(3):Will focus on the methodology to be used in ascertaining all information for the study ,data analysis and interpretation will all be captured under this chapter.

Chapter Four (4): This will comprise of the interpretation of the analyzed data and its presentations using tools for measurement such as the balanced scorecard and the integrated approach.

Chapter Five (5): This will deliberate on the main findings of the research work and its implications. The necessary recommendations and conclusion of the entire work will be captured.

THANK YOU