The Federal Government via the Federal Executive Council has approved N9.24bn for the 2022/2023 Group Life Insurance Cover for public servants.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed this after the FEC meeting yesterday. She said the insurance was to cover all government officials.
She said, “the Head of Service of the Federation presented a memo to Council on Group Life Insurance Cover for the period 2022 to 2023. This is an insurance cover that is covering all government officials in all government agencies, paramilitary and intelligence agencies. Council approved the total sum of N9.24bn for the insurance cover for 2022 to 2023”.
According to the minister, The insurance will take effect from the date of payment and by the provisions of Pension Reform Act 2014, the insurance cover is a minimum of three times the annual emolument of employees and this cover is paid by the insurance company to the beneficiaries of a deceased staff.
she cited Section 4 sub section 5 & 6 of Pension Reform Act 2014 mandates saying; In addition to the rates specified in sub-section (1) of this section, every employer shall maintain a Group Life Insurance Policy in favour of each employee for a minimum of three times the annual total emolument of the employee and premium shall be paid not later than the date of commencement of the cover.
Where the employer failed, refused or omitted to make payment as and when due, the employer shall make arrangement to effect the payment of claims arising from the death of any staff in its employment during such period, she concluded.
