Over 300 brokers get Fed Govt group life account

Over 300 brokers get Fed Govt group life account

Chuks Udo Okonta

Over 300 brokers were appointed by the Head of Service for this year’s Federal Government group life insurance, Inspen has learnt.
A broker, who asked not to be named, said the premium is valued at about N7 billion, adding that over 300 brokers were privileged to be appointed.
Observers who expressed misgivings over the delay in the release of the premium, called on the government to ensure the premium is released early in the year to forestall issues arising from claims settlement.
An expert urged the government to pay attention to insurance development by ensuring that premiums are paid as at when due, adding that insurance is a neccessity which must be considered first among other priorities.
He said: "Delay in payment of premium is not good for the development of the industry. It is an irony that the government which supposed to encourage insurance growth is the one contravailing its law, thereby constraining the market. If huge premium is paid as at when due, it would go a long way in growing the industry.
"The government is not doing well, It should see insurance as a neccessary expenditure, that must be paid as other expenditure head. Insurance should not be treated as an after-thought, because we live in a world of risks. Government should note that by paying premium, it is not doing underwriters a favour, but a neccessary concern that must be met."
It would be recalled that there were anxiety in the industry over the payment of claims to government employees that died in the Dana air clash, due to the non payment of group life premium.
Former Chairman Nigerian Insurers Association Olusola Ladipo-Ajayi, who spoke on the position of insurers on the claims, said ‘No Premium No Cover’ clause would not deter insurers from settling the claims of the civil servants who died in crash.
He said though the Federal Government is yet to pay the group life cover for its employees; insurers would settle the claims arising from the mishap and collect the premium later.
"On the issue of Head of Service, I know the laws says No premium No cover, but I am not aware that the law criminalises the issue of granting cover without premium. To the best of my understanding and belief, it is a gentle man agreement, when premiums have not been paid, that cover exists. And it has been a serious problem because the federal government is the major insurance buyer in this country and they observe that provision of the law in the breach of it, because of the administrative network. Insurance companies have been in the habit of collecting their premium in arrears. I am sure no insurance company will raise the clause no premium no cover at this point in time for the civil servants that died in the air crash," he said.
He noted that the insurers and government would find a common place to resolve the issue to ensure that the victims get their benefits.