 |
| President Goodluck Jonathan |
Chuks Udo Okonta
Unless something drastic happens, Federal Government’s workers may be out
of insurance coverage again this year, as the group life policy meant to insure
them has sailed into troubled waters.
Last year the government adopted self
insurance as the N11 billion appropriated for the insurance of its workers, was
not accessed by underwriters due to what was termed grey areas observed in the
business.
Our investigations revealed that the federal government has suspended the
process for this year’s group life which some brokers have submitted their
applications.
A broker told Inspen that the government has refused to issue letters as
expected, adding that the process may have rammed into a storm. The broker noted
that the money for the settlement of the premium is available, but the
government has left the brokers in the dark as to why the process is suspended.
The introduction of No Premium No Cover rule, which states that insurance,
takes effect immediately the premium is paid, has been a challenge to be tackled
by the government to ensure that its workers are properly insured.
Underwriters have resolved not to take any risks that occurred before the
payment of premium, this they considered a violation of the new premium
collection and remittance rules.
To resolve the impasse, a broker has urged the government to move renewal
period of Ministries Departments and Agencies (MDAs) from January to April
ending or June, so as to forestall challenges associated with delay in
implementation of the budget, stressing that this would enable them have enough
time, after the budget is released to get their premium.
No comments:
Post a Comment