| Abstract: | The aim of this study was to assess the customer claim handling practices and challenges in the case of Nyala Insurance Head Office, Addis Ababa. To this end, data were gathered through questionnaire from 60 customers of the insurance company. The researcher used convenience sampling method to select samples because customers were contacted at hourly service delivered and the population would be infinite. Descriptive statistics (frequency, percentage, mean and standard deviation) was used to analyze data as it helps to describe the characteristics of objects, people group, organizations, or environments. Data from the respondents was analyzed and translated into useful information using the statistical package for social sciences (SPSS).The findings of the study indicate that the insurance company’s customer claim handling system was found to be ineffective as the respondents’ average mean value was 2.88. The results also show that the major claim handling challenges in NIC are weak underwriting standards, lack of information technology support and limited capacity of claims personnel and the performance evaluation and legal principles undertaken by the company to reduce customer claim handling and related problems. Therefore, Nyala Insurance company need to improve the existing customer claim handling practices and take proactive measures to curb the challenges and increase insurance customer satisfaction. |
