The economic situation is becoming tougher by the day, and organisations are closing shops with a lot of job cuts. With a benefit of hindsight that this may notbe over so soon, given the rate of oil prices crash, which analysts have predicted would reach $20 per barrel, as well as exchange rate battle against the naira, there are fears that many more people will lose their jobs.
While figures from the Nigeria Bureau of Statistics (NBS) further reveal a tough year for employment market, with a rise in unemployment to 9.90 percent in the third quarter of 2015, from 8.20 percent in the second quarter of 2015, it is most likely that the situation might get worse. What this means is that, many breadwinners may be thrown into the labour market, with attendant impact dropping on their families and dependants. If you are therefore having a job today, and could not be sure of what tomorrow holds given the current economic realities, it might then be you, we are advising.
Take up a job loss or unemployment insurance, so that in the event of this happening, you could have a regular payment for sometime, before you settle in another job or a business.
In Nigeria, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force.
Employment Insurance (EI) provides a temporary financial assistance to unemployed people who have lost their jobs through no fault of theirs, while they look for work or upgrade their skills.
Within the Nigerian market, operators are thinking seriously about providing succor to many who may be affected or lose their job through well thought out products. For instance, Anchor Insurance Company Limited had disclosed it was partnering with Universal Risk Management and Actuarial Services Limited, to jointly sell a new product for workers called URFANS Loss of Employment Insurance Scheme (LoEIS).
“This is coming as a measure to help people who lose their job, cope with financial needs pending the time they secure a new job,” the Company said.
Mayowa Adeduro, managing director and CEO, Anchor Insurance said the product will soon be officially unveiled to the public, having secured the approval of the industry regulator.
Adeduro noted that the original concept of the product was born out of intensive research, market survey and test marketing locally and abroad, since 2011 by Universal Risk Management And Actuarial Services Limited, an indigenous actuarial service-consulting firm.
He said it relied on the competence and relationship between URMAAS Limited USA, PolySystems, Inc USA and URMAAS Limited Nigeria, to make a success story from the product.
Adeduro explained that the new product provides cover against sudden loss of employment income for a reasonable period of time that the victim can regain employment, and a flow of income resumes.
“This product provides benefit for a member who lost his employment through no fault of his. The policy will continue to provide financial cushion against income losses from temporary unemployment.
“In the event of loss of employment, he said the policy will pay the insured, the salary earned last in the employment for a period of time, during which period, the member may have regained another employment, subject to a maximum period of 24 months.
Modestus Anaesoronye
