Insurance

NIA calls for payment of premium as FG reviews group life insurance scheme

Thomas

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Chuks Udo Okonta

As the Federal Government plans to review the current Group Life Assurance Scheme from an annual policy to a long term policy, the Nigerian Insurers Association (NIA) has said payment of premium is most critical for the plan to be successful.

The Director-General of the NIA, Sunday Thomas, who said this, noted that the planned review will be in the interest of public servants.

His words: “The planned review is welcome and will be in the interest of the public servants. However, payment of premium is most critical for whatever review to be of any meaning.”

The Federal Government has said it plans to review the scheme to make it effectiv and efficient in order to address drawbacks, enhance the benefits derivable from the scheme and align the scheme with global best practices.

The Permanent Secretary, Common Services Office in the OHCSF, Yemi Adelakun, who’s disclosed this in an interview with a national newspaper, noted that a situation where government spends N5.4billion to cover the scheme and civil servants will not benefit anything except those who died, will not happen again.

“We want civil servants to take maximum benefits of the insurance scheme. A situation where government will spend N5.4billion to cover this scheme and civil servants will not benefit anything except those who died, will not happen again.

“It is just like you insure your car for a period of time, you don’t have accident, you don’t have any claim, and don’t you get no claim benefits or no claim bonus? You do. So, those are the areas we are looking at, to make sure that government is not just spending money, but we can get value for the money government is spending on Group life insurance of civil servants. That is my position.”

He posited that the current Group Life Scheme has not been in tune with global best practices and as such, failed to benefit civil servants across the federation as expected.

He also said the only benefits civil servants received from group life scheme was death benefit, whereas it could be extended to accidents, disabilities, residual benefits and other ancillary services.

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