1.1 Introduction
Travel insurance is a means of coverage meant for a range of tourists, such as those going on business trips, family vacations, and domestic and foreign student travel. Travel insurance companies have a duty to provide their clients with efficient, superior service. The goal of insurance in the sociological, economic, and legal domains is to make up for losses sustained by social groups as a result of injury. It is necessary to provide passengers with realistic warnings about the risks associated with going overseas and the potential for severely underdeveloped medical resources at the destination. Tourists need to be sure the coverage they purchase actually fits their needs by checking with their insurer.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of Study
Travel insurance frequently covers a person's out-of-country medical, dental, and travel expenses. If specific conditions are satisfied, it will also organize, in accordance with the terms specified in the travel insurance policy, for the tourist's aero-medical evacuation. All passengers should be informed of the necessity of having comprehensive travel insurance due to the high cost of medical and dental care received abroad as well as the high cost of aero-medical evacuation. In addition, visitors should be cautioned to thoroughly review their policies to ascertain what is covered and to look for any exclusion (Anderson, 2018).
Particularly, tourists with known preexisting conditions, those working abroad, and those planning to partake in any dangerous recreational activity may need to purchase a specialty travel insurance policy, which could result in a higher premium. This is particularly true for tourists working abroad, as estimates of the number of travellers who will become ill or injured while travelling range from 30 to 50 percent (Hawk, 2019). The relative estimated monthly incidence rates of various health disorders have been compiled in a different location. Individuals who travel abroad have a higher chance of suffering a major accident. By acquiring travel insurance, the tourists should be safeguarded against these risks; yet, it is unclear what proportion of travel companies or airlines regularly provides advice on travel insurance. Travel health advisors should advise tourists to buy travel insurance since it's the most important safety net they may have in case of an emergency.
Travel-related costs, as well as those for medical and dental treatment, are frequently covered out of pocket by a tourist who has obtained travel insurance. The operator should furthermore arrange for the tourist's aeromedical evacuation in the event that specific requirements specified in the travel insurance policy are met (Olaoye, 2017). The value of acquiring comprehensive travel insurance should be made known to all tourists. This is a result of the high expenses of receiving dental and medical care abroad in addition to the high cost of air medical evacuation. Tourists should also be advised to thoroughly review their policies to determine what is covered and to look for any restrictions that could apply to their plans (Duyile 2018).
According to Duyile (2018), certain varieties of travel insurance may be required, which might result in a greater cost, for tourists who are specifically going to engage in dangerous leisure activities, have previously established medical conditions, or are working overseas. Among those who travel with knowledge of their prior medical conditions are individuals who work overseas. This is especially true for visitors who work in the nation where they are travelling. A third to half of those who visit are expected to suffer from a sickness or injury while travelling, according to experts. This estimate is conservative (Duyile, 2018). A compilation of the relative estimated monthly incidence rates of various health conditions has been conducted in a separate location. Travelling to foreign countries increases one's chance of experiencing a serious accident while there. A tourist may protect themselves against these hazards by purchasing travel insurance. It's imperative that tourists' travel health specialists remind them of this specific concern since travel insurance is the single most important safety net they may have in the event of an emergency.
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Impact of Travel Insurance on the Security of Travelers.
1.3 Statement of Problems
Investigation revealed that the impact of risk and uncertainty on destination selections has been studied in the past (Karl, 2016). Several studies have even classified customers according to the risk-reduction tactics they implement (Lo, Law, & Cheung 2017). Sheng-Hshiung et al. (2017) discovered that the perception of risk affects the demand for insurance, despite the fact that the majority of studies on travel insurance focused on the medical implications of diseases and accidents (Hung, Lin, Cheng, Chan, & Graham, 2016; Pickup et al., 2016). Not much has been studied on travel insurance as a risk-reduction strategy, especially about the important variables impacting choices and the assurance and comfort it provides.
1.4 Aim and Objectives of Study
The aim of the study is to examine the Impact of Travel Insurance on the Security of Travelers in Nigeria. In achieving this aim, the following specific objectives were laid out as follows:
- To ascertain the level of travel insurance purchase by Nigerians;
- To investigate the factors affecting travel insurance in Nigeria;
- To determine the challenges of travel insurance in Nigeria; and
- To proffer solutions to the challenges of travel insurance in Nigeria.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- To what extent do Nigerians purchase travel insurance?
- What are the factors affecting travel insurance in Nigeria?
- What are the challenges of travel insurance in Nigeria?
- What are the possible solutions to the challenges of travel insurance in Nigeria?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There are no significant factors affecting travel insurance in Nigeria
- H1: There are significant factors affecting travel insurance in Nigeria
1.7 Significance of Study
This study will provide significant information to the travel and insurance industries by revealing the importance of health insurance, the factors influencing health insurance, and the effect health insurance has on the standard of travel in Nigeria. Furthermore, the findings of this study will be used as an empirical study for subsequent research and for reference in the future.
1.8 Scope of Study
The scope of the research is focused on the Impact of Travel Insurance on the Security of Travelers in Nigeria using some Staff of selected Insurance Companies in Lagos State, Nigeria as a focus point.
1.9 Limitations of the Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Initial Cooperation Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.10 Definition of Terms
Travel Insurance:
Travel insurance is an insurance product for covering unforeseen losses incurred while travelling, either internationally or domestically.
Travelers:
It refers to a person who is travelling or who often travels.
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