Insurance advisory for Nigerian workers
Sir: My main advice for Nigerian workers is that they should demand for insurance coverage due to them. Workers ought to know that the Insurance and Pensions Laws specifically require their employers to provide insurance coverage against death, disabilities and injuries.
Every Nigerian working in a registered company in Nigeria that employs three or more persons is required by the Pensions Reforms Act 2014 to have Group Life Assurance Policy for their employees. In the event of death, the family (stated beneficiary) of the deceased is entitled to three times of the total annual emoluments of the deceased.
National Social Insurance Trust Fund through the Employees Compensation Act 2010 is designated to collect one per cent of the total annual emoluments of all employees in all registered companies in Nigeria. From these funds, it is required to cater for employees that are injured in the course of work and compensate them based on the extent of disabilities.
As an employer with Group Life Assurance Policy in place for your staff, you are not only fulfilling the requirement of the law but also creating an avenue you can take when the unexpected happens. Some insurers pay burial expenses as part of the benefits of the policy. This saves you cost.
As an employee in a registered company, ascertain that you are listed on the Schedule of Staff for Group Life Assurance Policy. This forms part of your non-monetary benefits upon employment. Enquire and ensure the policy is active, so that when the unexpected happens, your family can receive the benefits due to them.
Both employers and employees should encourage workers’ unions to make these insurance coverages part of the negotiations for better wages and salaries. Insurance is ultimately cheaper and more accessible in better time to affected parties.
Identify and know the insurance companies and brokers that are providing services to your organisations and inform your beneficiaries as they might need to respond directly to them whilst the payouts are made from the Group Life Assurance Policy.
The Group Life Assurance Policy put in place by the Federal Government of Nigeria through the Office of the Head of Service for Federal Civil Servants is the largest portfolio in Nigeria managed by a consortium of licensed Life Companies.
Sometimes, due to poor knowledge of how insurance works, many beneficiaries are either unaware or face undue delays in receiving their benefits.
Share this Advisory with other stakeholders to help recreate better work environments and secured future for workers in Nigeria.
Insurance works! Let’s make it work for us.
Ekerete Ola Gam-Ikon, an insurance expert, wrote from Lagos.