Factors Affecting the Demand For Motor Insurance Comprehensive Cover: The case of Ethiopian Insurance Corporation

This masters’ thesis sought to analyse Factors Affecting the demand For Motor Insurance Comprehensive Cover the case of Ethiopian Insurance Corporation. The main objective of this study is to analyize Factors Affecting the demand for Motor Insurance Comprehensive Cover with the specific objective of identifying and addressing those factor which affect and hinder the growth of comprehensive cover and increasing its’ productivity. The study was a cross-sectional survey that used self-administered structured questionnaire to the target population of customers of Ethiopian insurance corporation. Out of the three hundred questionnaire delivered, all of them were obtained constituting 100% for analysis. The sampling method was taken in line with Structural Equation Model criteria. Structural Equation Model (SEM) approach used to analyse and test relationships among variables.The study found that awareness, Islamic religion and Delayance during claim handling process to have significant impact on the demand for Motor Insurance Comprehensive Cover in EIC. Out of these Awareness was found to have significant and positive impact on the demand to purchase comprehensive cover whereas Islamic religion and Delayance has negative relationship and significant impact on the demand for Motor Insurance Comprehensive Cover. Islamic religion were found the variable which affects the demand for Motor Insurance Comprehensive Cover the most followed by Awareness and Delayance during claim process. Launching the Islamic Insurance Takaful and Improving the claim service and overall insurance service was given as recommendations