The Federal Government through the Office of the Head of Service (HOS) of the Federation has not insured men and officers of the Nigeria Police since June 2019 as it has failed to pay the insurance premium for their coverage.
Life insurance is a compulsory policy for employees provided by the employer including government, as provided in the Pension Reform Act 2004 as amended in 2014.
But since June, insurance companies that had hitherto provided the group life cover for police officers as enshrined in law have not picked up new claims. This means that police officers currently have no cover in line with the ‘No Premium No Cover’ policy instituted by the National Insurance Commission (NAICOM).
As a result, dependants and Next-of-Kin of officers who died since the cover elapsed cannot claim any insurance benefits.
Abdul Suleiman Abdul, a deputy commissioner of police, confirmed during the 2019 Annual Interactive Session with Consumers of Insurance Products held in Lagos that the group life of police officers elapsed in June 2019.
What this means is that while the “no cover” lasts, the death benefits for any deceased police officer would have to be borne from the state budget. This means that in the event of loss occurring, particularly death, the government will pay compensation from taxpayers’ money, a burden that could have been transferred to insurance companies who are experts in risk management.
Amid declining government revenue and competing needs, families of deceased officers would face hard times accessing such funds from government that is largely confronted with non-payment of accrued pension rights of retired civil servants since September last year.
Abdul appealed for special consideration to be given to the police because of the uniqueness and importance of their service, which has to do with security of citizens.
He also called on insurance companies to engage in Corporate Social Responsibility (CSR) and leverage it to educate security personnel on health issues and also execute capacity building for the officers. He stressed that such efforts would help enhance their living standard, extend their lifespan and overall reduce claims payment brought to insurers.
Mohammed Adamu, director at NAICOM, said the insurance industry has been able to overcome the initial challenges associated with insurance of police and the military, stating that it was as a result of lack of data for insured members.
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 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, from January through December, and is renewable at the end of each coverage year. The premium payable on the policy is pro-rated as applicable where an employee joins the scheme in the course of the year.
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