The Nigerian Insurers Association (NIA), said the Nigerian Insurance Industry Database (NIID) has been upgraded for the National Pension Commission (PenCom) and other parties to verify the genuineness of group life insurance policy certificates issued to the insuring public by its members underwriting life insurance business.
Kunle Ahmed, the Chairman of NIA, said this in his speech presented at the association’s Annual General Meeting (AGM) held recently in Lagos, noting that in furtherance to the association’s pursuit to drive and enforce group life insurance as made mandatory by extant law, it has continued to engage and work assiduously with the National Pension Commission.
“During the year, the NIA agreed to provide the platform to which PenCom can verify the genuineness of insurance certificates issued by our life companies on group life insurance to corporate organizations and businesses,” he posited.
Group life insurance cover is long-term insurance, also known as death in service benefit, which an employer provides to their staff. It is set up by your employer to cover you while you are employed within their organization.
While giving details about its workings, Ahmed explained, “If you die, death in service benefit pays out a lump sum to your family or next of kin as required by law (Pensions Act of 2004). For your family to receive death-in-service benefits, you must be employed with your organization at the time of your death. This type of life cover usually runs until your normal retirement age. If you take time out from your career or leave the company for any reason you will no longer be covered.
On who can benefit from the purchase of group insurance, He noted that Group life is purchased by your employer. The organization pays the premium and agrees on the level of coverage with the insurance company. Death in benefit schemes is mandated to be purchased for organizations hiring over five employees.
