June 25, 2024

Only six out of the 36 states of the federation and the Federal Capital Territory (FCT) have complied with the group life insurance scheme of their workers, leaving 30 states without any form of cover for their employees.

 This was revealed in a document posted on the National Pension Commission (PenCom) website.

   States with group life cover are Ondo, Edo, Kaduna, Ekiti, Lagos, Osun and the Federal Capital Territory (FCT).

   In Nigeria, group life insurance is compulsory under the Pensions Reform Act of 2004 (PRA 2004).

    Section nine, subsection three of the Act requires employers to maintain a life insurance policy for their employees for a minimum of three times the annual total emolument of the employees.

   The emergency savings are generally expected to cover about three to six months’ worth of expenses.

     Group life insurance cover is a joint regulation of the National Insurance Commission (NAICOM) and PenCom.

 Section four, subsection five of the PRA 2014, provides that every employer shall maintain a group life insurance “in favour of each employee for a minimum of three times the yearly total emolument of the employee and premium shall be paid not later than the date of commencement of the cover”.

  Available data in the industry show that over 2.5 million civil servants in the country are missing out on the benefits of group life insurance coverage, following the inability of those states to sign up policies on their behalf.

  Commenting on the development, the Director of the Centre for Pension Rights Advocacy (CPRA), Ivor Takor, urged unions in public and private sectors to compel employers to insure their lives.

   According to him, while the labour unions are fighting for salary increments, pension and insurance packages for workers should also be part of their demands.

 Also, a past president of the Nigerian Council of Registered Insurance Brokers (NCRIB), Shola Tinubu, called on employers to shoulder the responsibility of insuring their workers to motivate them to be more committed to their official responsibilities.


Leave a Reply

Your email address will not be published. Required fields are marked *