Mrs. Winifred Ekanem Oyo-Ita FCA NPoM, INTERVIEW WITH THE GUARDIAN NEWSPAPER ON CIVIL SERVICE GROUP LIFE ASSURANCE NOVEMBER 2018

Q1: The Federal Civil Servants Group Life Insurance payments have been suspended as far back as November, 2016. This has made many government workers unable to come up for claims. May we know the current State?

ANS: The Policy commenced in 2008 effective from 1st July, 2004 in compliance with Pension Reform Act 2004 Section 9 Sub Section 3. This Act was repealed and replaced by the Pension Reform Act, 2014. The Group Life Assurance for Civil Servants was not suspended in 2016. The Policy expired on the 13th August, 2016 and was renewed on the 20th April, 2017 for another one year which ended on the 19th April, 2018. The Process of renewal of the Policy is already in an advanced stage.

Q2: Sometime ago, we were told that the major challenges the Head of the Civil Service had was that of choosing credible insurance companies to handle the civil servants group life insurance matters. How many new Insurance companies have been chosen or approved for the assignment?

ANS: Selection of credible Insurance Companies to handle the Civil Servants Group Life Assurance has never been a challenge to this Office. This is because the selection process is done in accordance with the Public Procurement Act 2007. For the procurement of the 2018/2019 Insurance Policy which is ongoing, the final list of successful Insurance Companies will soon be announced after the completion of due process in line with the Public Procurement Act.

Q3: Could you please name them for us?

ANS: As I have mentioned earlier on, the list will be made public after completion of the due process.

Q4: May we know the total amount of debts or outstanding claims the Government is owing the Civil Servants with regards to the Group Life Insurance?

ANS: Payment of claims depends on the number of deaths reported to the Insurance Companies by the MDAs. It is difficult to put a figure on outstanding claims, because these claims would continue to be paid as long as deaths are reported within an Insurance policy. The death of an Officer has a period of up to one year from the date of incident and documentation completed within two years.

Q5: Has the backlog been cleared by Government and how much was later budgeted to pay off the arrears.

ANS: Backlog of death benefits has not been cleared completely as claims are reported from the MDAs from time to time to this Office. Request for the payment of death benefits for the period when there was no subsisting insurance policy are received, almost on a daily basis by my Office and we attend to them within the limit of the resources available.

Q6: What role does the National Insurance Commission (NAICOM) which is the apex regulatory body of Insurance Company play in arriving at settling disputes?

ANS: The National Insurance Commission (NAICOM) attends to complaints of non-settlement of claims by Insurance Companies promptly.

Q7: Does Government actually pay premium on either assets or Group Life Insurance?

ANS: The Federal Government has taken out insurance policy on every Public Servant in accordance with the Pension Reform Act. To this end Government pays premium on the Group Life Assurance Policy managed by the Office of the Head of the Civil Service of the Federation for the Federal Government.

Q8: Some Private and Public Stakeholders have rated the performances of Insurance Companies in Nigeria very low. Do you agree?

ANS: It depends on the experience of the client with the Insurance Companies engaged in underwriting their policies.
I will not rate Insurance Companies in Nigeria very low.

The Office monitors Pension Fund Administrations to ensure that payment of backlog of death benefits made by this Office are remitted to the next-of-kins of deceased Officers who died in Service.

To ensure prompt settlement of claims insurance companies/brokers provide quarterly reports of claims reported and processed as well as claims settled by the companies.

In all, the Scheme is a laudable Federal Government programme that provides succor to the families of Officers who die in Service.