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Underwriters deny federal workers, policemen insurance cover

By on February 12, 2015

The families of Federal Government workers and police officers who have lost their lives since the beginning of this year have been denied insurance cover by underwriting firms.

Investigation revealed that the underwriters took the decision because of the failure of the Federal Government to pay the premium for the insurance cover of the concerned people this year.

Officials of some of the life underwriters, who spoke to our correspondent on the issue, said relatives of fallen police officers and federal workers had been demanding payment of claims.

Our correspondent, however, gathered that the cover for the current year had not been renewed by the government since December 2014 when the last cover elapsed.

According to the underwriting firms, the Federal Government ought to have paid them N6bn and N3.5bn as premiums for the insurance cover of the civil servants and the police officers respectively since December last year, but that has not been done.

They said the insurance cover of the police officers and federal workers would only commence the day premium was paid and compensation would only be paid to the families of those who lost their lives after the premium payment.

Without insurance cover, the underwriters said the workers and security agents would not be motivated to put in their best at work and in the fight against insurgents, because of the uncertainty that their dependants would be taken care of if they lose their lives.

Available records showed that claims paid on the lives of policemen lost to terrorist attacks by the Boko Haram insurgents and armed robbery attacks had continued to raise the underwriters’ life claims portfolio.

Section 50 of the Insurance Act, 2003 states, “The receipt of an insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of an insurance risk unless the premium is paid in advance.”

The Director-General, Nigerian Insurers Association, Mr. Sunday Thomas, said the ‘no premium, no cover’ policy was part of the provisions of the Insurance Act, and that both the government and private sector employers must adjust to it in order for their workers to enjoy insurance cover.

“For the group life, the government seems to be adjusting to the regulation because now, the cover now commences from the date of premium payment. When the premium has not been paid, if anybody should die between the date the last contract expired, the government will take responsibility for it because there must be order in it,” he said.

In 2008, the Federal Government commenced the implementation of the group life insurance cover for its entire workforce.

The Office of the Head of Civil Service of the Federation used to manage the scheme for all federal employees until the Nigeria Police Force and other security agencies broke away to individually manage their workers’ insurance schemes.

In 2013, the NPF was granted autonomy to manage its own insurance separate from those of civilians and other security agencies.

The underwriters are worried that while they have made known to the different Ministries, Departments and Agencies the ‘no premium, no cover’ policy, they have yet to get the premium even after the expiration of the last insurance cover.

 

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