32 State Govts undermine N1trn insurance premium income target

THERE are indications that the insurance industry may not meet the N1trillion premium income target set for 2020 following the refusal by many states to implement Group Life Insurance for their workers.

This would force the industry to shift, for a second time, the target year for this land mark having failed the earlier 2012 target date. Fourteen years after the Contributory Pension Scheme, CPS, instituted by the Pension Reform Act (PRA), 2014 which repealed the 2004 Act, mandated employers to maintain group life insurance policy for employees, only four states, Lagos, Niger, Osun, and Rivers have complied.

Section 4(5) of the PRA 2014 states thus, “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.

“Where the employer failed, refused or omitted to make payment as and when due, the employer shall make arrangement to effect the payment of claims arising from the death of any staff in its employment during such period.”

Vanguard, April 30, 2018

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