(a) State three roles of National Insurance Commission.
(b) List and explain three methods of providing indemnity.
Explanation
(a) Roles of National Insurance Commission:
(i) To establish standard for conduct of insurance business in Nigeria.
(ii) To approve rates of insurance premium to be paid in respect of all classes of insurance business.
(iii) To approve rates of commission to be paid in respect of all classes of insurance business.
(iv) To approve standards, conditions and warrantees to all classes of insurance business.
(b) Methods of providing indemnity:
(i) By replacement: This is done in case of total loss, the insurer may replace the subject matter with the same age and standard.
(ii) By repair: This is a way of making the claimant regain from the loss he or she suffered.
(iii) Re-instatement: This is the usual way of making claims by making good the subject matter as it was before the damage.