ABUJA (Office of Head of Service Report) – The Nigerian Government will review the Group Life Assurance Policy for federal civil servants for effective utilisation towards achieving its desired goals. The Head of the Civil Service of the Federation, Bukar Goni Aji stated this recently in his office during a meeting with the Underwriters on the Group Life Assurance Scheme for federal civil servants.
Represented at the occasion by the Permanent Secretary in the Common Services Office, Office of the Head of the Civil Service of the Federation, Yemi Adelakun, the Head of Service said that the current Group Life Assurance Scheme is not beneficial to civil servants as much as it should and is not in line with global best practices.
The drawbacks in the current policy according to him, include: arbitrary allotment of Ministries, Departments and Agencies (MDAs) to insurance companies without consideration for competitiveness or value propositions; funds not being provided to pay for premium in advance of cover as required by the insurance law of ‘no premium no cover’; current insurance scheme being done annually whereas group life assurance should be a long term policy; premiums are currently based on total estimates of staff emolument in the annual budget rather than the actual payroll of the respective MDAs.
He identified other lapses in the present policy as comprising: unavailability of subsequent reconciliation for estimated and actual premium to determine surplus or shortfall and the basing of the share of insurance companies on the percentage of estimated budget emolument of allotted MDAs, rather than the scheduled emolument of civil servants covered by the insurance.
The Head of Service further explained that the only benefits derivable from the current arrangement is death benefits whereas Group Life Insurance should be extendable to accidents, disabilities, residual benefits and other ancillary services to civil servants.
“To address these drawbacks, there is need to enhance the benefits derivable from the scheme to bring the Group Life Insurance Policy in line with global best practices. The Government would have to review the current Group Life Assurance Scheme from an annual policy to a long term policy for effectiveness and efficiency. Civil servants will have to henceforth directly or indirectly choose their preferred insurance companies on the basis of benefits offered by the companies,” he said.
Bukar Goni Aji opined that the new scheme will afford civil servants the flexibility to include their family members where possible and to extend the cover beyond their retirement dates at their expense, if they so desire. He added that premium will now be based on the actual emoluments and allowances of civil servants and not budget estimates or mandatory reconciliation of actual and estimated premiums.
In implementing these review measures the Head of Service said that the Government would continue to collaborate with all relevant stakeholders to ensure favourable benefits for all the stakeholders.
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