The Nigerian Pension Reform Act 2014 (Section 4, subsection 5) made it compulsory for every employer to maintain Life Insurance Policy for a minimum of three times the annual total emolument in favour of each employee.
The Scope of Cover:
a. Death by Natural Causes
b. Death by Accidental Causes
The main objective of the scheme is to ensure that dependants of every person who worked in either public or private sector receive death-in-service benefits to cushion the financial burden as a result of the demise of such a bread-winner.
The required Life Assurance under the Act is a Term Assurance covering death-in-service benefit. The provision is that where an employee dies, his entitlement under the Life Assurance policy shall be paid to his retirement savings account (RSA) maintained under the contributory pension scheme or paid directly to the named dependant nominated by the employee or employer.
The premium payable here is borne by the employer. This acts as an additional incentive for employees to give their best to the employer. HIB is capable of providing the suitable cover against risk of death of insured staff through the most reputable and viable life underwriters in the market and at the most minimal cost.
Your Corporate Life product can also be extended to encompass the following:
a. Workmen’s Compensation Policy
b. Group Personal Accident Policy