Brokers urge NLC to promote workers affairs via pension reform law

Shoderu

Chuks Udo Okonta

The Nigerian Council of Registered Insurance Brokers (NCRIB), which is the umbrella body of insurance brokers, has urged the leadership of Nigerian Labour Congress (NLC), to synergize its efforts with related stakeholders to take advantage of the 2014 Pension Reform Act for the benefit of their members.

Its President Ayodapo Shoderu, disclosed this during an interactive session with the NLC and Insurance operators in Enugu.

 Shoderu, said the welfare of workers should continually occupy premium position in the reckoning of governments in its economic development strides, pointing out that the quality of labour was a major index for determining the advancement or other wise of countries of the world.

He said: “Countries such as United States of America, United Kingdom, Japan and lately, China, have attained their enviable state as developed nations because of due consideration their governments accorded labour”

He specifically opined that the 2014 Reformed Pension Act has mandated employers to take Group Life Assurance for their workers, noting that the step would increase the regime of benefits that could accrue to workers in retirement.

“Aside from the increased pension contributions on the part of the employers, the reform provides that an employer’s contribution under the Group Life should not be less than 20 per cent of the employees monthly emolument. In addition, a Group Life Insurance policy must be maintained in favour of the employee’s annual total emoluments similar to the old Act,” he said.

Shoderu added that the elimination of Letter of Administration for the processing of Group Life to beneficiaries of deceased workers was also a good idea that has made access to death benefits by dependents much easier than it was before.

He regretted that in spite extant laws on compliance with Group Life by employers of labour, government at the three strata - Federal, States and Local Governments have continued to be lax in compliance.

“The federal government and its agencies could be said to be less culpable as records shows higher compliance by federal government agencies. Some of the weak reasons being adduced was that the Group Life Insurance enforcement is a national law that must first be complied with by federal institutions for their workers while the states and local government could comply at their convenience. The fact must be made that law is law and must be complied with by all strata of government, irrespective of jurisdictions”.

 To further drive home the benefits the Council suggested the following steps that could be taken by the NLC; the need to continually create platforms of interaction between NLC, employers unions and other critical stakeholders across the country to highlight the importance of the Group Life aspect of the new reform and need for compliance.

In addition, it should also be the responsibility of Labour to meet minds with professional bodies, especially those that have to do with human resources or workers to explore the new reform in favour of workers.

He urged the labour leaders to lobby notable regulatory institutions to make evidence of compliance with Group Life a prerequisite for granting approvals or yearly renewals as presently being done for insurance operators who are requested to show such evidence before renewal of their yearly license with NAICOM.

He also canvassed the need to create more aggressive awareness campaign, encouraging workers to adhere to the new reforms Act and sensitizing employees to demand for compliance by their employers and readiness of Labour to take drastic or militant actions such as lock ups or picketing on companies that are unwilling to conform to the provisions of the Act

Aside Group Life Assurance, the NCRIB boss also advised the labour organisation to push for adherence to Group Personal Accident covers for workers, adding that this form of insurance will cover the worker against the risk of personal accident leading to injury or physical bodily damage in the course of work.

He said it is regretful that many workers had been consigned to suffer in terms of dismissal or career regression when they suffer accident, leading to physical incapacitation.