By Nike Popoola
As of the first half of 2013, no fewer than five states of the federation, which adopted the Contributory Pension Scheme, had put in place the Group Life Insurance cover for their workers.
According to a report on the implementation of Group Life Insurance Policy by the National Pension Commission, which was obtained by our correspondent on Tuesday, at least, 2,138 private sector employers have also insured their workers.
Records from the commission show the states with Group Life Insurance cover for workers as Lagos, Niger, Delta, Osun and Rivers.
The GLIP is provided under Section 9(3) of the Pension Reform Act, 2004, which mandates employers with at least five workers to provide insurance cover for their employees.
If an insured employee dies while in active service, the insurance company will pay his beneficiary three times his annual emolument.
"The number of institutions that submitted evidences of compliance with the GLIP increased from 30 in the first quarter of 2013 to 54 in the second quarter, representing an increase of 80 per cent," PenCom stated.
From 2004 till 2012, a total of 2,054 employers in the private sector had complied with the guideline on the GLIP, with the number increasing to 2,138 when the compliance figure for the first two quarters of 2013 was added.
The regulator of the CPS stated that in the first half of 2013, 14 financial institutions, three educational institutions, four construction firms, nine pension operators, four oil and gas firms and one manufacturing firm took the GLIP covers for their employees.
It added that one hospitality company, two government agencies, seven commercial firms and nine others took the policy for their workers, thus making a total of 50.
By 2011, a total of 632 organisations had submitted certificates of compliance with the GLIP, while in the third quarter of 2012, 1,422 employers had submitted compliance certificates, bringing the total number of compliant firms to 2,054.
In the private sector level, PenCom has continued to request the firms to provide evidence of compliance with the GLIP.
The commission said it had intensified its compliance and enforcement activities with particular reference to the provisions of the GLIP law in 2013.
PenCom and the National Insurance Commission are working together to create awareness on the GLIP.
During an awareness workshop in Lagos last year, the Acting Director-General, PenCom, Mrs. Chinelo Anohu-Amazu, said the collaboration was part of an existing arrangement between the two organisations, which led to the release of the regulation on the GLIP for employees in 2006.
According to her, the commission will continue to support and promote collaborative approach on pertinent issues meant to address any regulatory challenges militating against the successful implementation of the policy.
Anohu-Amazu had said PenCom would expose the operators to a better understanding of the rudiments of the GLIP as well as their responsibilities.
Source Punch
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