PenCom to sanction employers without workers’ insurance

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The National Pension Commission (PenCom) has given Nigerian employers up till July 31, 2021, to provide copies of the insurance policy of their employees or be ready to face prosecution.

In a notice to all employers on Monday, the pension regulator insisted that companies must procure Group Life Insurance Policy for their workers.

The Commission said those who flout the directive will be prosecuted, describing it as a violation of the section 4(5) of the Pension Reform Act, 2014.

PenCom has a joint regulatory policy with the National Insurance Commission (NAICOM) on the insurance policy for workers.

“In accordance with the provision of section 4(5) of the Pension Reform Act (PRA) 2014, every employer shall maintain a group life insurance policy in Favour of all employees,” the notice read.

The commission reminded employers that the policy “should be a minimum of three times the annual total monument of the employees.”

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