Employees of the Federal Government, paramilitary and intelligence agencies have received morale boost with the Federal Government’s approval of N9.2 billion for the 2020/2021 group life insurance.
With the insurance, these employees would be entitled to get a death benefit in case of death in service. This covers the next one year, beginning from when the money is released to the appointed insurance companies.
The Federal Executive Council, after its meeting on Wednesday, approved N9.2 billion for Group Life Insurance for its workers for 2021/2022 following a memo submitted by the Head of Service of the Federation.
Lai Mohammed, minister of information and culture, speaking with journalists after the meeting, said the premium covered Federal Government employees, public servants, paramilitary and the intelligence community.
It is part of the government’s welfare initiative to ensure that the workers are paid compensation in case of death, the minister said.
“On behalf of the Head of Civil Service of the Federation, I will like to report that council today approved the award of contract for the appointment of insurance companies for group life assurance for federal government employees, public servants, paramilitary and the intelligence community for the year 2021-2022 in the sum of N9,248.995,907, and this premium is for a period of 12 months.
“Section 9 (3) of the Pension Reform Act 2004 as amended in 2014 stipulates that every employer both in the public and private sector which the Act applies must maintain Life Insurance Policy in favour of the employee for a minimum of three times the annual total emolument of the employee,” he said.
The group life policy provides cover to the insured against death and the insurance cover is mandatory for all employees as long as they are in employment. This means that the policy provides for the payment of the sum assured in the event of the death of a member of the scheme from any cause, natural and accidental.
According to the guidelines for life insurance policy for employees jointly issued by the National Insurance Commission (NAICOM) and National Pension Commission (PenCom), the employer is required to fully bear all costs in relation to procurement of this policy, and this shall be in addition to the contributions to be made by the employer to each employee’s Retirement Savings Account.
The policy provides cover to the insured against death and the insurance cover is mandatory for all employees as long as they are in employment. This means that the policy provides for the payment of the sum assured in the event of the death of a member of the scheme from any cause, natural and accidental.
Similarly, the policy also provides for the payment of the sum assured for those in common employment in the event that an insured person disappears and is not seen for a period of 12 months and there is sufficient evidence to assume that the member is dead. However, the person receiving the sum will sign an undertaking to refund it if the missing person is subsequently found to be living.
The insurance coverage is for 12 months and shall be renewable at the end of each coverage year. The premium payable on the policy shall be pro-rated as applicable where an employee joins the scheme in the course of the year.
