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Chuks Udo Okonta
The Nigerian Insurers Association (NIA) said the Nigerian Insurance Industry Database (NIID) has been upgraded for the National Pension Commission (PenCom) and other parties to
verify genuineness of group life insurance policy certificates issued to the insuring public by its members underwriting life insurance business.
The Chairman of NIA Kunle Ahmed, said this in his speech presented at the association’s Annual General Meeting (AGM) held recently in Lagos, adding that in furtherance to the association’s pursuit to drive and enforce group life insurance as made mandatory by extant law, it has continued to engage and work assiduously with the National Pension Commission.
“During the year, the NIA agreed to provide the platform to which PenCom can verify the genuineness of insurance certificates issued by our life companies on group life insurance to corporate organisations and businesses,” he posited.
Group life insurance cover is long-termed insurance, also known as death in service benefit, which an employer provides to their staff. It is set up by your employer to cover you while you are employed within their organization.
How it works
If you die, death in service benefit pays out a lump sum to your family or next of kin as required by law (Pensions Act of 2004). For your family to receive death in service benefits, you must be employed with your organisation at the time of your death. This type of life cover usually runs until your normal retirement age. If you take time out from your career or leave the company for any reason you will no longer be covered.
Who purchases this cover?
Group life is purchased by your employer. The organisation pays the premium and agrees on the level of cover with the insurance company. Death in benefit schemes is mandated to be purchased for organisations hiring over five employees.
