Only 667 firms have so far fulfilled the regulatory requirement of providing life insurance for their employees as at the end of 2011.
The National Pension Commission disclosed this in a report, titled, â€œSubmission of group life insurance certificate,â€ made available to our correspondent on Monday.
In the report, it stated, â€œSequel to the provision of Section 9(3) of the Pension Reform Act 2004, the pension industry witnessed minimal increase of 5.54 per cent in the number of organisations implementing the group life assurance as the number of organisations implementing the policy increased from 632, as at the end of fourth quarter of 2011, to 667 at the end of the first quarter of 2012.â€
With the group life policy, insurance firms are to pay the beneficiary of any employee who dies in service three times his annual emolument. It was made for all employers with, at least, five employees to have life insurance cover for the workers.
The Act states that, â€œEmployers shall maintain life insurance policy in favour of the employee for a minimum of three times the annual total emolument of the employeeâ€œ. This is, however, in addition to having a compulsory pension account for them.
The scheme was jointly introduced officially by PenCom and the National Insurance Commission.
According to PenCom, the public sector topped the list of compliant firms, with a figure of 175 companies. This was followed by commercial firms, financial institution and other firms, which recorded 24, 117 and 54 compliant firms.
According to the report, manufacturing firms, oil and gas firms and construction companies had 52, 40 and 34 compliant firms.
On the part of pension operators, 32 firms were discovered to have been compliant, while 26 hospitality firms and 13 educational institutions had taken the group life policy for their workers.
The Group Managing Director, Lasaco Assurance Plc, Mr. Ladipo Ajayi, said that the group life assurance would add value to the workers.
According to him, the insurance firms have been ensuring that claims on the group life are paid regularly.
He stressed the need for employers to be compliant, by providing life insurance cover for their workers through the group life policy.
According to the Managing Director, Crystal Life Assurance Company Plc, Mrs. Seyi Ifaturoti, insurers have been providing life insurance cover for the workers under the group life policy.
Unlike before now, when workers lacked cover, she said with employers taking it for the workers, there workers had become more secured as they were motivated with the policy in place.
She emphasised the relevance of the life insurance cover for employees of different organisations.