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•Employees, employers urged to embrace life insurance
By Henry Uche
The National Insurance Commission (NAICOM) and the Independent Shareholders Association of Nigeria, (ISAN) are on discourse to deepen regulatory compliance and collaboration towards the development of mutual trust.
In a statement by the Head of Corporate Communications and Market Development, NAICOM, Mr. Rasaaq Salami, the Commission and ISAN are also deliberating on how to deepen corporate governance and transparency in the Nigerian insurance sector.
“Members of the Independent Shareholders Association of Nigeria, ISAN led by its National Co-ordinator Moses Ibrude this afternoon paid a courtesy visit to the Commission. The team was received by the CFI and some members of management.
“The two bodies had fruitful discussions around deepening regulatory compliance, collaboration towards the development of mutual trust and as well, deepening corporate governance and transparency in the Nigerian insurance sector” Salami stated.
In another development, the Nigeria Employers’ Consultative Association (NECA) and NAICOM has decided to collaborate on the need for more sensitization on the enhanced 3rd party motor insurance as well as explore areas to sensitise employers and workers on the importance of Group Life Insurance.
NECA had this discourse with NAICOM when the latter paid a courtesy visit to the Commission led by its Director General, Mr. Adewale Smatt-Oyerinde. The team was received by the Commissioner for Insurance (Mr. O. S. Thomas) and his Management team.
While the third party insurance is made compulsory by the Insurance Act 2003, the Pension Act stipulates the all employers must arrange group life insurance for their employees.
Section 68 of the Insurance Act 2003 provides that: (1) “No person shall use or cause or permit any other person to use a motor vehicle on a road unless a liability which he may thereby incur in respect of damage to the property of third parties is insured with an insurer registered under this Act.”
By virtue of section 4, sub-section 5, of the Pension Reform Act 2014, employers are statutorily required to maintain a group life insurance policy or death-in-service benefit scheme of a minimum of three times annual total emolument for their employees. It can also be taken up by Clubs and Associations on behalf of their members.
