REVISED GUIDELINES ON GROUP LIFE INSURANCE POLICY FOR EMPLOYEES
Policy · Finance
Guidelines mandate group life insurance coverage for employees under the pension scheme, revising minimum benefits and administrative rules. They target employers, employees, and insurance companies. This protects families of deceased employees and standardizes insurance practices.
REVISED GUIDELINES ON GROUP LIFE INSURANCE POLICY FOR EMPLOYEES
What Is This Policy?
Updated PenCom guidelines on the mandatory group life insurance cover that employers must provide for all employees, revising the minimum benefit levels and administrative requirements.
Who Does It Target?
All employers with employees under the Contributory Pension Scheme Licensed life insurance companies Employees and their nominated beneficiaries PenCom and NAICOM as dual regulators
What Does It Aim to Achieve?
Ensure all employees are covered by adequate death-in-service insurance, protect families of employees who die in service, and standardise the administration of group life insurance across employers.
Key Features
Minimum Cover: All employees must be covered for a minimum of three times their annual total emolument. Policy Renewal: Employers must renew policies annually without a gap in coverage; lapsed policies must be reinstated immediately. Claim Processing: Provides revised procedures and timelines for processing and paying death benefit claims. Insurer Standards: Insurers providing group life must hold a valid NAICOM licence and meet financial soundness requirements.
Current Status
Rollout Stage: Active Coverage: All employers under the CPS nationwide Beneficiaries: Employees and their dependants Funding: Employer-paid insurance premiums
How to Access
Employers must purchase group life insurance before or at the start of each policy year Policies must be placed with NAICOM-licensed life insurers Beneficiary nominations must be maintained and updated annually Application method: Employers procure policies through licensed life insurance companies. Claims filed through the employer to the insurer.
Important Terms
Failure to maintain group life cover is a violation of the Pension Reform Act Premiums must not be deducted from employee salaries Claims must be settled within 30 days of receipt of complete documentation
Official Resources
Website: https://www.pencom.gov.ng Contact: National Pension Commission (PenCom)
Legal Framework
Issued under the Pension Reform Act 2014, which established the National Pension Commission (PenCom) and the Contributory Pension Scheme. Derives authority from PenCom's regulatory mandate under the Pension Reform Act and operates alongside the Investment Regulations for Pension Fund Administrators and the Guidelines for Pension Fund Operators. Draws on the Insurance Act 2003 and the National Insurance Commission guidelines on group life insurance as applicable to the mandatory group life insurance for contributors under Section 9(3) of the Pension Reform Act 2014.