FG pays N15bn premium for employees’ Group Life Insurance

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By Raphael Innocent

Reports have affirmed that the federal government has fully paid the premium for its employees’ Group Life Insurance cover for the year 2020.

This development was made public by Vice President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Mr Tunde Oguntade.

Oguntade, while disclosing this to the members of the National Association of Insurance and Pension Correspondents (NAIPCO) shortly after their 2020 Annual General Meeting held in Lagos, didn’t disclose the actual amount received by the insurers.

Recall that the government had earlier in the year 2020 passed an appropriation bill proposing a sum of N15 billion for the payment of Group Life Insurance of its employees.

The said amount was meant to be used to pay for Group life insurance for employees of all federal government ministries, departments and agencies including the DSS/insurance of sensitive assets, Corpers plus administrative monitoring.

Section 4 (5), of the Pension Reform Act, 2014 states that, every employer shall maintain a group life insurance policy in favour of each employee for a minimum of three times the annual total emolument of the employee and premium shall be paid not later than the date of commencement of the cover.

Representing the president of NCRIB, Mrs. Bola Onigbogi; Mr. Oguntade expressed the feelings of insurance operators at the development, describing it as a positive one.

He then urged the federal government to engage the services of the registered insurance brokers in the purchase of insurance services in order to reduce the risk of contract failures.

On issues of government contracts, Oguntade said NCRIB was in talks with ministers through the liaison committee to drive home the point that to avoid contract failures, the government have to allow insurance brokers handle contracts of roads, bridges and rail constructions without the intervention of third parties or other agencies which are not in the sector.

Stressing further on the ways to increase insurance penetration, he mentioned the need for insurance operators to deploy online, physical and referral models in getting services done for the clients and helping the government reduce the number of contract breakdown issues.

On the application of technology in their operation, Oguntade said that NCRIB has ensured all its members are ICT savvy and updated.

Another speaker at the meeting was NCRIBs Executive Secretary, Mr. Fatai Adegbenro who added that the council was in very close contact with government agencies on the need to engage the services of the registered insurance brokers.