FCT, Lagos, three other States comply with group life for workers

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Only five state in the country have complied with the law on group life despite frantic efforts put by the National Pension Commission and Nigerian Council of Registered Insurance Brokers (NCRIB) to make the States adopt group life policy for their workers,

The four stated are Federal Capital Territory, Lagos; Osun; Edo and Ondo .

PenCom had directed employees to report any employer that fails to procure the minimum required Life Insurance Policy in their favour not less than three times their annual total emolument.

But most of the States seem not bothered by the welfare of their workers, as most of them are yet to comply.

PenCom in a notice entitled: ‘Re Compliance withguidelines for life insurance policy for employees and submission of insurance certificate for 2020’ stated that it is the right of all employees in the Public Service of the Federation, Federal Capital Territory and States that have implemented the Contributory Pension Scheme as well as private sector, under Section 4(5) of the PRA 2014 to have Life Insurance Policy taken on their behalf by their employers for an insured amount of not less than three (3) times their annual total emolument.

PenCom further advised employees to bring to its notice, where the employer fails to: “submit the evidence of compliance with Life Insurance Policy and place the certificate in a conspicuous place within the organisation.

PenCom noted that in accordance with the provisions of Section 4(5) of the Pension Reform Act (PRA) 2014 and Section 5.5 of the Guidelines for Life Insurance Policy for Employees, Employers of labour covered by the PRA 2014 are required to submit copies of the Insurance Certificates with the schedule of benefits to the National Pension Commission (PenCom).

Also speaking on the development, the past President, Nigerian Council of Registered Insurance Brokers (NCRIB), Mr Shola Tinubu, urged employers to take up the responsibility of insuring their workers, as this may also motivate employees to be dedicated to work.

Available data showed that about 2.5 million civil servants in the country are missing out of the benefits of Group Life Insurance cover, following the inability of 33 states to sign on to the policy, against the mandate of Pension Reforms Act (PRA) 2014.

Group life cover is a joint regulation of the National Insurance Commission (NAICOM) and PenCom, on Section 9 (3) of PRA 2014, requiring 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.

Worried about the lack of group life cover for workers in these states, the Nigerian Council of Registered Insurance Brokers (NCRIB) had written state governments on the need to adequately protected their workers with insurance.

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