Inspite of the demise of several federal Government workers in 2013, Insuranceadvicenigeria.com can authoritatively reveal that Nigerian workers are yet to be insured for the 2013 insurance period. In effect, the dependants of deceased government workers who die in active service to their fatherland might not be eligible to compensation.
The Federal Government introduced Pension reforms in 2004, a package that includes the mandatory group life cover for workers at the instance of their respective employers. Section 9 (3) of the Pension Reform Act, 2004 states that every employer must “maintain life insurance policy in favour of the employee for a minimum of three times the annual total emolument of the employee”.
The Federal Government led by example by instituting a Group Life Assurance Scheme for all its workers. This was being coordinated by the office of the Head of Service of the Federation. However, the scheme ran into hitches in the last three years due to funding challenges. There had been delays in premium payment to insurance providers resulting in delayed compensation
In 2012, the scheme was renewed almost nine months into the insurance period and only 41% out of the total premium of N3billion has been paid so far. Yet, several claims had been reported for the year wit insurance companies finding it difficult to pay. Unfortunately, NAICOM Guideline of “No Premium No Cover” for 2013 will not allow a repeat of the event of 2012 since cover can only commence on the date of full payment of the premium due.
The Nigerian Council of Registered Insurance Brokers (NCRIB) recently lamented that the failure of government to honour its financial obligation was impacting negatively on the insurance industry as well as the well being of its workers.
It would be recalled that about 47 policemen died in May in Nasarawa State. What about several deaths caused by the current insecurity challenges in the Nigeria- kidnapping, armed robbery, Boko Haram etc?. Something urgent needs to be done!