Assessment of Motor Vehicle Insurance Claims Settlement Practices in Lagos State

This research assesses motor vehicle insurance claims settlement practices among selected insurance firms operating in Lagos State, South West Nigeria. The Nigerian motor insurance market is one of the most active segments of the non-life insurance industry, driven by mandatory third-party motor insurance requirements under the Insurance Act. However, persistent consumer complaints about delayed and disputed claims have eroded public confidence in motor insurance products. This study employs a descriptive research design with a sample of 280 policyholders and 40 claims officers drawn from five registered insurance companies in Lagos Island and Ikeja. Data collection instruments include structured questionnaires and secondary data from complaints records obtained from the Nigerian Insurers Association. The study investigates procedural bottlenecks, documentation requirements, fraud incidence, and regulatory compliance as variables influencing claims settlement efficiency. Preliminary analysis suggests that bureaucratic delays in documentation verification and inadequate adjuster capacity are primary contributors to settlement backlogs. The research also evaluates the effectiveness of NAICOM's complaints resolution framework in mediating disputes between insurers and policyholders. Recommendations focus on digitizing claims processing systems and strengthening adjuster training programs. This study contributes to the growing literature on consumer protection in Nigeria's insurance industry and has practical implications for insurance regulators and practitioners. Keywords: Claims Settlement, Motor Insurance, Consumer Protection, Lagos State, Insurance Regulation.