By Favour Nnabugwu
The has approved N9.24 billion for the 2022/2023 Group Life Insurance Cover for Nigeria public servants.
The N9 24 bn was approved by the Federal Executive Council, FEC in Abuja today
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, disclosed this while briefing State House correspondents at the end of the Council meeting presided over by Vice President Yemi Osinbajo, at the Council Chamber, Presidential Villa, Abuja.
Mrs. Ahmed, who spoke on the approval of the memorandum, which she said was presented to Council by the Head of the Civil Service of the Federation, Dr Folashade Yemi-Esan, explained that the insurance is meant to cover all government officials.
“The Head of Service of the Federation presented a memo to Council on Group Life Insurance Cover for the period 2022 to 2023.
“This is an insurance cover that is covering all government officials in all government agencies, paramilitary and intelligence agencies.
“Council approved the total sum of N9.24 billion naira for the insurance cover for 2022 to 2023”
“As you know, the insurance will take effect from the date of payment and in Nigeria, by our laws, the insurance cover is 30 percent of the annual emolument of any staff of government that is deceased and this cover is paid by the insurance company to the beneficiaries of the deceased staff”, she said.
It will be recalled that the OHOSF gave the performance of claims settlement on the group life for previous cover: The key performance indexes (KPIs) on settlement of claims as of September, 2022 indicated that the total number of claims reported was 776; the number of claims paid was 357; total sum on claims reported, 4,201,392,384.27; number of awaiting EDVs from HoS/MDAs 101; total amount paid 1,574,709,562.12; the number of awaiting DVs from lead underwriter 150 (2,626,682,822.15), total amount expected from EDVs 785,123,928.73, number of incomplete documentations 168 and total outstanding claims is 1,841,558,893.42.”
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 coordinated by the Office of the Head of Service of the Federation on behalf of the federal government.