The National Insurance Commission (NAICOM) has been expediting actions to ensure the implementation of compulsory group life insurance provided for in the Pension Reform Act 2004 in order to deepen insurance penetration and provide adequate protection to Nigerian workers.
Section 9(3) of the Pension Act stipulates that “In addition to the rates specified in sub-section (1) of this section, employers shall maintain life insurance policy in favour of the employee for a minimum of three times the annual total emolument of the employee.”
Towards this end, NAICOM and the Nigeria Labour Congress (NLC) are set to collaborate on the implementation of this provision of the law.
This was disclosed by both parties when the Commissioner for Insurance and Chief Executive of NAICOM, Fola Daniel, led members of his top management on a working visit to the President of NLC, Abdulwaheed Omar, in Abuja recently.
Daniel said one of the cardinal functions of the commission is the protection of existing and prospective insurance policyholders in the country.
He went further to list the benefits inherent in arranging the compulsory group life insurance for employees, urging the NLC to ensure their members, especially at the State and Local Government levels, are adequately insured by their employers.
Responding, the President of NLC stated that the congress will be more than willing to work in collaboration with NAICOM in sensitising the workers and the general public on the benefits of insurance products.
He therefore suggested the setting up of a joint working committee for strategic planning and implementation to achieve desired success. Membership of the Committee will include NAICOM, NLC and National Pension Commission (PenCom) to ensure greater efficiency and effectiveness. The committee is expected to be inaugurated very soon.
Having realised that majority of employers have not been arranging the mandatory group life insurance policy for their employees more than nine years after the Pension Act became effective, NAICOM had indicated that it would be proposing a joint enforcement of this provision of the Pension Act to PenCom.
Although the guidelines for life insurance policy for employees was jointly issued by NAICOM and PenCom, the Commissioner for Insurance stated that only PenCom is empowered to enforce compliance with this provision of the law.
