FG Pays 2020 Group Life Insurance Premium

Federal Government has fully paid the premium for its employees’ Group Life Insurance cover for 2020. This was disclosed by the Vice President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Mr. Tunde Oguntade, while speaking to members of the National Association of Insurance and Pension Correspondents (NAIPCO) shortly after their 2020 Annual General Meeting (AGM) held in Lagos.

Mr Oguntade did not disclose the actual figure paid to the insurers, but FG had in the 2020 Appropriation Bill, proposed N15 billion for payment of Group Life insurance of its employees, saying the amount would be used to pay for Group life insurance for employees of all federal government ministries, departments and agencies including DSS/insurance of sensitive assets, Corpers plus administrative monitoring.

Group Life Insurance is mandatory under the Contributory Pension Scheme (CPS), Section 4 (5), of the Pension Reform Act, 2014 states that, “every employer shall maintain a group life insurance policy in favour of each employee for a minimum of three times the annual total emolument of the employee and premium shall be paid not later than the date of commencement of the cover.”

Expressing the feelings of insurance operators, Oguntade, who represented the NCRIB President, Mrs. Bola Onigbogi, at the meeting, described the payment as a positive development.