NATIONAL INSURANCE COMMISSION COMPULSORY EMPLOYEES GROUPS LIFE INSURANCE
Posted: 23/Feb/2021
  1. FOR WHOM

All public and private sector organizations with more than three (3) employees

  1. WHAT DOES THE POLICY COVER Compulsory

a). Death - Compensation for the employees who may die while in service

b). Disappearance - Compensation in the event of disappearance of an employee. Optional

c). Additional Compensation for Permanent Disability (mental or physical) (through accident or stroke)     especially at a time when pension contribution is still small.

d). Compensation for Temporary Total Disability and Medical Expenses following accident

e). Compensation for any self-employed person who is worried by the happenings under (a-d) above.

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  1. HOW MUCH COMPENSATION DO I GET
  1. Payroll Employees 

For Death - Three (3) times Total Annual Emolument (TAE)

For Disappearance -Three (3) times Total Emolument (TAE)

For Stroke etc - Three (3) times Total Annual Emolument (TAE)

For Permanent Disability - Three (3) times Total Annual Emoluments (TAE)

 

For Temporary Disability A % of the TAE based on the Degree or Disability For Medical Expenses - Max. 25% of Total Annual Emolument (TAE)

  1. Non P. y-roll Employee  A selected Capital Sum, reasonable enough, in case of death, to take care of the employees family or the employee in case of disability.
  1. WHO IS LIABLE

All employers of labour in the public and private sector with more than four (4) employees.

  1. HOW MUCH D01 PAY AS PREMIUM
  1. For Death and Disappearance N6,000 to N8,000 per annum for N1.0m Compensation depending on the employees Occupational hazards
  2. For a above plus Permanent Disability - N9,000 to N12,000 per annum for N1.0m compensation depending on the employees Occupational Hazards.
  3. For b) above plus Stroke, insanity, Heart Attack, Paraplegia etc. —N13,000 to N17,000 per annum for N1.0m compensation depending on the employee's Occupational Hazards.
  4. For Temporary Disability following accident -194,000 per annum for N1.0m Compensation or part thereof.
  5. For Medical Expenses following accident— N 15000 per annum for N1.0m Compensation or part thereof.
  1. WHAT DISCOUNT RATE DO I GET FROM THIS

20% Discount as from five (5) staff or family members and above

  1. WHAT ELSE AM I COVERED FOR

Existing Deformity is covered as if it happened during the period of Insurance. Death or Disability arising from Riot, Strike and Civil unrest are also covered.

 

  1. WHO PAYS THE PREMIUM

The Premium is to be borne 100% by the Employer

  1. PENALTY FOR NON-COMPLIANCE

N250,000 fine and One (1.) year imprisonment for every director or officer of the defaulting body corporate.

  1. THE REGULATORY AUTHORITIES

The National Insurance Commission (NAICOM) The National Pension Commission (PENCOM)

 

NATIONAL INSURANCE COMMISSION

www.naicom.com