• Sunday, May 26, 2024
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BusinessDay

Osijo calls for release of 59% outstanding premium on group life

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Laide Osijo, president and chairman of Council, Nigerian Council of Registered Insurance Brokers (NCRIB) has called on the Federal government to release the outstanding 59 percent balance of Insurance premium on group life account for Federal Government workers in 2012. The premium said to have been paid in part upto 41 percent, Osijo stated has made many insurance companies to discountenance claims under the year in review in view of the now existent “No Premium No Cover”

This as we are all aware is to the displeasure of some beneficiaries especially to those who died in active service, stating that the impression many of them have is that the insurance industry is insensitive to their plight, a situation that creates serious image smear for the industry”

The Federal Government will do well to assist the industry to avoid further accumulation of unpaid premiums and claims, a situation that negates the extant “No Premium Cover Rule”.

Section 9 (3) of the Pension Act stipulates that every employer, to which the Act applies, must maintain Life Insurance Policy in favour of the employee for a minimum of three times the annual total emolument of the employee. Under the policy, total annual emolument is defined as the basic salary, transport and housing allowances and shall not include bonuses, overtime, directors’ fees or other fluctuating emoluments.