purpose of this study is to assessment of claims management practices in case of AIC. The research’s particular emphasis was given to non-life /general insurance business of the company. The study tried to answer the questions that; what are the main factors of claims settlement dalliance in AIC, how claims management practices are source of customer compliance, how efficient is the claims management practice in AIC and what are the main reasons of claims rejection in Africa insurance company. The general objective of the study is to investigate claims management processes and practices of claims management. The study employed cross-sectional survey design in which 315 external customers selected randomly and 88 internal customers (i.e., staffs) involved in the claim process were the subject of the study by administering specially designed questionnaires. The results obtained suggest that the prevailing claims handling process is a major problem area affecting customers’ satisfaction that need to be overhauled. The clients of AIC believed that lack of updated and clear claims management manuals and procedures, lack of skilled, knowledgeable, experienced and committed claim staff and in claims service are the key challenges in AIC. More importantly, centralized claims management, external and internal effects of immoral behavior of the clients, surveyors, garages, spare part dealers, and internal employees along with sluggish interdepartmental/work units/ communications towards claims management were the major issues in the company. Poor compliant handling system of the company, delay of claims management from notification up to settlement to claimants, lack of intensive standard training for claims staff, and lack of work standard for internal employees, external surveyors and garages decelerates the rate at which quality service is delivered in the company. Thus, it’s recommended based on the finding that the AIC should create an effective, transparent and customer-oriented means to standardize the services, educate the customers, decentralize the claim unit and make use of the standard monitoring mechanism as per the strategies and policies of the company so as to maximize the level of satisfaction of motor claimants. The study suggests that to solve the claims settlement problems should begin from underwriting and the policies should be have an Amharic version and the management should also solve the problems of claims department centralization and dalliance problems. In addition the company should provide timely response for its customers and the investigation process should do in good cooperation with in claims department.