By Sola Alabadan
The management of the Nigeria Employers’ Consultative Association (NECA) is seeking to collaborate with the National Insurance Commission (NAICOM) for more sensitisation on the enhanced third party motor insurance as well as explore areas of collaboration and Group Life Insurance.
While the third party insurance is made compulsory by the Insurance Act 2003,the Pension Act stipulates the all employers must arrange group life insurance for their employees.
The Director General of NECA, Mr. Adewale Smatt-Oyerinde, spoke when the NECA team visited the head office of NAICOM in Abuja on Thursday.
They were received by the Commissioner for Insurance, Mr. Sunday Thomas and his Management team.
The NECA boss emphasised the need for more sensitization on the enhanced third party motor insurance, as well as the need to make the employers and employees to appreciate the importance of Group Life Insurance.
Section 68 of the Insurance Act 2003 provides that: (1) “No person shall use or cause or permit any other person to use a motor vehicle on a road unless a liability which he may thereby incur in respect of damage to the property of third parties is insured with an insurer registered under this Act.”
By virtue of section 4, sub-section 5, of the Pension Reform Act 2014, employers are required to maintain a group life insurance policy or death-in-service benefit scheme of a minimum of three times annual total emolument for their employees. It can also be taken up by Clubs and Associations on behalf of their members.
The group life insurance policy is aimed at relieving the employer of financial commitments associated with employee’s death, promoting goodwill between employers and their respective employees, as well as to improve employee productivity as a result of the attendant peace of mind.
The policy grants cover for both accidental and natural death on a 24 hour basis.
