• Monday, July 15, 2024
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BusinessDay

Anchor Insurance out with loss of job insurance

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Underwriting firm, Anchor Insurance Company Limited and Universal Risk Management and Actuarial Services Limited have secured the approval of the National Insurance Commission (NAICOM) to jointly sell a new product for workers called URFANS Loss of Employment Insurance Scheme (LoEIS).

This is coming as a measure to help people who lose their job cope with financial needs, pending the time they secure a new job, as the innovation has been largely commended.

Ademayowa Adeduro, managing director/CEO, Anchor Insurance, said the product would soon be officially unveiled to the public, as the original concept was born out of intensive research, market survey and test marketing locally and abroad since 2011 by Universal Risk Management and Actuarial Services Limited, an indigenous actuarial service consulting firm.

He said it relied on the competence and relationship between URMAAS Limited USA, PolySystems, Inc. USA and URMAAS Limited Nigeria to make a success story from the product.

URMAAS began a research work on how to address the increasing menace of job insecurity and spiral effects of loss of employment in Nigeria.

The new product provides cover against sudden loss of employment income for a reasonable period of time that the victim could regain employment and flow of income resumes, Adeduro said, saying “this product provides benefit for a member who lost his employment through no fault of his. The policy will continue to provide financial cushion against income losses from temporary unemployment.”

In the event of job loss, he said the policy will pay the insured, the salary earned last in the employment for a period of time during which period the member may have regained another employment, subject to a maximum period of 24 months.

The insured, he explained, would get 100 percent of the monthly salary for the first six months, followed by 75 percent in the next six months if the employee remains unemployed, 50 percent will continue for the following six month, while 25 percent will be paid in the last six months.

Taiwo Akintunde, chairman, Supreme Adequate Insurance Broker, who have done well using technology to drive insurance, said his firm was the approved insurance broker for the product, saying

the product will be out on March 5, 2015, and will be opened for subscription from March 9, 2015, from which time workers will begin to enjoy a new lease of rest of mind under the cover of LoEIS.

Adekunle Fashola, managing director of URMAAS, said “LoEIS is the outcome of the research work packaged to solve the problem of sudden job loss and redundancy resulting to income loss.

“Losing job or getting laid off can happen without warning and those affected are usually left in panic, scrambling for money to pay rents, children school fees, mortgages, car loans, cater for daily expenses and other financial obligations. The adverse effect of a job loss could be very devastating and could eventually lead to foreclosures, bankruptcy, bad credit, financial hardships, depression or even death.”

 

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