The Roles of Insurance Consumers Protection in Economic Growth

The Concept of Consumer Protection

Consumer protection is an advanced concept that has assumed the general interest of the masses following the contemporary increase in mass production and industrialization.

In each day that passes, some businesses come up and some new ventures are established, this vast in industrialization and mass production has remained on the increase, producers want to maintain their usefulness and enjoy the profits arising in product development and innovations in order to satisfy ever-increasing needs of consumers.

However, consumer protection is a concept that points or states in detail the social responsibility of producers to their customers and prospective customers.

It involves the boldest attempt aimed at sustaining producers from destructive activities, irrespective of their immediate profitability base, for the benefit of the consumers and general contribution to human development.

The ever-increasing personal quest for profit maximization do influence producers and have actually influenced greedy producers in making available those products that are below standard.

To prevent the negative effect of this on the masses, the government has to make rules and regulations; the customer from associations to protect and relate their interest; the producer become more ethical to enjoy improved customers relationships, and the pressure group insists on overall environmental protection against pollution, and deceptive information that are misleading.

The consumer protection council

The power and the responsibility of legislating consumer protection have been in the hand of society and the government.

For instance, in Nigeria, there exist several laws.

Among them include “Control of rent law; Law of Eastern Nigeria;1963′, Weight and measure Act. 1962″, Adulteration of produce law; Food and Drug Act. of 1974”, various State Edict on Environmental sanitation; price control legislation { Decree No 33, 1970}.

All the various legislation agencies on economic activities have provisions for consumer protection. Insurance degree No.2, 1997; the National insurance commission Decree No. 1, 1997 and the insurance regulations 1998 contain the general provisions aimed at protecting the insuring public and perpetuating insurance business in Nigeria.

All these agencies were actually put in action to reduce the high rate of fake products and to ensure that the consumers are provided with a quality, healthy and reliable product that satisfies their most pressing needs.

Functions of consumer protection council

The functions of the consumer protection council as written in sections 2 and 3 of the Decree No. 66 of 1992 are as follows:

a. Ensure quick redress to complaints arising from the customers via proper negotiation, mediation, and conciliations;

b. Defining ways and procedures for averting or eliminating hazardous or harmful products from the market and ensuring that the producers of such products replace them with more quality and better ones.

c. They organize and disseminate information and other forms of activities as will enhance to increase public consumers awareness.

d. The consumer protection council also issue guideline to manufacturers, importer, dealers, and wholesalers in relation to their obligation under this Decree.

e. Bring to the general public from time to time a list of those products withdrawn, not approved, and are restricted by the federal government.

f. Encourage the adoption of appropriate measures to ensure that products are safe either intended or normally safe for use.

The council shall have the power to carry out the following function:

1. To sue any individual or organization that engages in the production of a harmful or hazardous product and prevent the escalation of the product.

2. Compel the manufacturers to agree that all safety standards products are met in their production.

3. Avert the circulation, sales, and advertising of products that do not comply with safety or health regulations.

4. Power to ensure that product labels are made showing the date and certification of compliance.

Summary

In the world of production and industrialization, following the increase in mass production of those products that are hazardous to human consumption, the consumer’s protection council has acted as a leeway towards ensuring that producers meet up with the production of standard, quality, and more healthy product.

They Define ways and procedures for averting or eliminating hazardous or harmful products from the market and ensuring that the producers of such products replace them with more quality and better ones.

We also listed the following agencies as the most concerned with regard to consumer protection function. they include “Control of rent law; Law of Eastern Nigeria;1963′, Weight and measure Act. 1962″, Adulteration of produce law; Food and Drug Act. of 1974”, various State Edict on Environmental sanitation; price control legislation { Decree No 33, 1970}.

Insurance degree No.2, 1997; the National insurance commission Decree No. 1, 1997 and the insurance regulations 1998 contain the general provisions aimed at protecting the insuring public and perpetuating insurance business in Nigeria.