Group life: Employers to get certificate of compliance from NAICOM

Daniel

Chuks Udo Okonta

Certificate of compliance with Group life policy to be issued by the National Insurance Commission (NAICOM) will soon become a major document for bidding of government’s contracts, Inspen can report.

It was gathered that NAICOM is working with the government to replicate what is presently being practiced by the National Pension Commission (PenCom).

Head, Corporate Affairs, NAICOM 'Rasaaq 'Salami, who disclosed this, said the initiative was conceived to help enforce compliance of group life and boost insurance premium.

“There is no contractor today in this country that can do any contract without having a tax clearance, without the office asking for a certificate of compliance to PENCOM Act. We are working with government to replicate this with the compulsory insurances. “When this is implemented, it will generate a lot of premium for the industry and we are hoping this will take effect from this year as already promised by the Coordinating Minister of the Economy Dr Ngozi Okonji Iweala.”

Commissioner for Insurance Fola Daniel Daniel said NAICOM will continue to push group life compliance, so that workers can maximise the benefits of the Pension Reform Act 2014 as it relates to compulsory Group Life Insurance and Life Annuity for the employees by the employers of all tiers of government and the private sector. (As contained in section 4 subsections 5 and Section 7 subsections 1c).

He noted that the primary purpose of the relevant sections referred to is to ensure that employee dependants have succour in the event of death in the course of employment and comfort after retirement.

Daniel said at the moment, compliance is largely effected by the Federal government whilst other tiers of government are yet to fully comply, adding that compliance by private sector employers will need to be monitored to ensure that workers interests are protected.