The federal government is said to have settled about N15 billion premiums under the Group Life Insurance scheme to insure it’s over 89,000 workers across the country in the current financial year.
Although government had in the past, struggled to renew the Group life insurance for its workers, owing to the late passage of budget into law, findings show that insurance industry had to engage and convinced them on the need to insure these workers against unforeseen incidents at the workplace
With the premium now fully paid, the family of deceased civil servants will now be entitled to death benefit claims that will sustain and cater for them, including the wives and children they left behind.
In Nigeria, Group life cover is a joint regulation of the National Insurance Commission (NAICOM), and the National Pension Commission (PenCom). Section 9 (3) of the Pension Reform Act 2004 (now PRA 2014), requires every employer, to which the Act applies, to maintain Life Insurance Policy in favour of the employee for a minimum of three times the annual total emolument of the employee. The policy provides cover to the insured against death.
Confirming this development at the weekend, the President, Nigerian Council of Registered Insurance Brokers (NCRIB), Dr. Bola Onigbogi, said: “The 2020 Group Life is off the schedule because full premium has been paid on the account for the current year. There is no lapse in cover at the moment.”
Onigbogi, who was represented by the Vice President of the Council, Tunde Oguntade, at a meeting with the NCRIB’s officials, urged the Federal Government to always engage the services of the registered insurance brokers to mitigate the risk of contract failures.
