Life insurance companies divided among MDAs for Group Life Cover
CAPTION:
Commissioner For Insurance, Mr Olorundare Sunday Thomas and The Head Of Service of the Federation, Folashade Mejabi Yemi-Esan
By Favour Nnabugwu
There are strong indications that almost all life insurance companies participated in the Group life for 89,000 civil servants of the federation
patomabusinessonline.com findings revealed that The Head of Civil Service of the Federation o behalf of the federal government and the National Insurance Commission, Naicom change the old system of the Group life which was a straight jacket consortium with only one lead underwriter.
The life insurance companies are: African Alliance; A.R.M Life Plc; Capital Express Assurance Ltd; Custodian Life Assurance Ltd; FBN Insurance Ltd; Mutual Benefits Life Assurance Ltd; Old Mutual Nigeria Assurance Company Ltd; Roya Exchange Prudential Life Assurance Plc and Tangerine Life Insurance Ltd
Others include: Coronation Insurance Plc; Prudential Zenith Life Assurance Ltd; Heirs Life Assurance Ltd; Stanbic IBTC Insurance Ltd and Enterprise Life Assurance Nig. Ltd.
Group life insurance is a type of life insurance where a single contract covers an entire group of people. Typically, the policy owner is an employer or an entity such as a labour organization, and the policy covers the employees or members of the group
The new system now is that life insurance companies are partition to ministries where about for to five underwriters partake in one and the others are also shared. By the method all the money are involved in the cover
A source who disclosed this to patomabusinessonline.com said the system is much better than it used to be.
The way government has package the Group life is that almost all the life companies are involved in the business. By this, no company feel cheated or left over.”
“Life insurance companies are divided to cover the different Ministries, Departments and Agencies, MDAs and all the companies are involved, the source added
Before the advent of the PRA 2004, many employees and their dependents were at the mercy of their employers. This was due to the limitations of the Workmen’s Compensation Act of 1987 (WCA 1987) which existed at the time.
The WCA 1987 also did not provide coverage for employees outside work hours and thus the PRA 2004 (now amended to the PRA 2014) came to be the most important legislation for employees’ comprehensive welfare especially because it made it compulsory for employers to subscribe to a group life insurance cover for their employees in addition to setting up a contributory pension scheme.
