FREQUENTLY ASKED QUESTIONS ON GROUP LIFE ASSURANCE SCHEME
1. What does the Pension Reform Act say about Life Insurance?
Section 9(3) of the Act makes it mandatory for every Employer (including the Federal Government and all its Agencies) to maintain Life Insurance Policy in favour of the employee for a minimum of three times the annual emolument of the employee.
2. What is a Life Assurance Policy?
Life Assurance is a contract arranged between an Insurance Company and the Policy holder (known as the assured) which provides benefits for the Next-of-Kin or dependents of the assured, upon the death of the assured as a result of natural or other causes covered.
3. What is Group Life Assurance (GLA)?
The Insurance Policy for employees is usually arranged on a group basis whereby all employees are covered under a Group Life Insurance contract. In the event of death of any of the employees covered under the Group Life Policy, the Insurance Company makes payment in respect of the deceased employee.
4. Who pays for the Insurance Policy?
The Employer bears fully, the cost of the Insurance Policy.
5. What constitutes the Group Life Assurance Benefit?
The beneficiary of the deceased is entitled to three (3) times the Gross Annual Total Emolument of the deceased Officer.
6. When did this Scheme take effect?
The Group Life Assurance Scheme for Federal Government Employees took effect from 1st July, 2004
7. What are the categories of Federal Employees Covered by this Scheme?
All employees of the Federal Government in Ministries, Departments and Agencies, including Paramilitary and the Intelligence Community.
8. Who is qualified to benefit from Group Life Assurance Scheme?
Federal Government employees who died whilst in service or in the case of missing persons (presumed dead after a year from the date declared by a Board of Inquiry set up by the National Pension Commission) are qualified to benefit from the Scheme.
9. What happens if Government does not procure Cover for Federal Government Employees?
In cases where Government fails to procure Insurance Cover for Federal Government Employees, such periods are referred to as “Backlog” period and all claims that fall under this period are referred to the Office of the Head of the Civil Service of the Federation (OHCSF) for processing and settlement.
10. What are the periods of Cover since inception? The following periods are the periods when Insurance Companies were appointed to provide Group Life Insurance Cover for Federal Government Employees:
⦁ 1st January 2008 – 31st December, 2008
⦁ 1st March, 2010 – 31st March, 2011
⦁ 1st April, 2011 – 31st December, 2011
⦁ 1st January, 2012 – 31st December, 2012
⦁ 24th December, 2013 – 23rd December, 2014
⦁ 13th August, 2015 – 12th August, 2016
⦁ 20th April, 2017 – 19th April, 2018
11. Who is responsible for the settlement of claims under the Periods of Cover?
Insurance Companies and Brokers are appointed by the Federal Government and thereafter assigned to Ministries, Departments and Agencies (MDAs) to provide Insurance Cover for the Employees of those MDAs. It is their responsibility to process and settle death claims that occur in their assigned MDA
12. What are the periods since inception for which no Insurance Cover was procured?
⦁ 1st July, 2004 – 31st December, 2007
⦁ 1st January, 2009 – 28th February, 2010
⦁ 1st January, 2013 – 23rd December, 2013
⦁ 24th December, 2014 – 12th August, 2015
⦁ 13th August, 2016 – 19th April, 2017
⦁ 20th April, 2018 – date
13. How are Insurance Companies and Brokers selected to handle the Scheme?
The Office of the Head of Civil Service of the Federation advertises for Prequalification of interested Insurance Companies and Brokers to participate in the Scheme. The process of Selection of credible Insurance Companies and Brokers are carried out in line with the Public Procurement Act, 2007.
14. How is Group Life Assurance death claim processed?
For deceased Officers whose death claims fall under the period of Insurance Cover, the Pension/Insurance Desk Officer of the deceased’s MDA is required to immediately notify the appointed Insurance Broker of the demise of any Officer in their MDA for necessary documentation and processing of claims
In addition to the notification, the Desk Officer is required to forward a duly completed Death Notification Form (DNF) in respect of each deceased Officer with relevant documents attached as provided on the DNF duly signed by the Director Human Resources Management of the deceased Officer’s MDA.
15. What are the documents required for processing of the death claims?
⦁ Evidence of death/burial Issued by Imam or Pastor
⦁ Certificate of registration of death
⦁ Police report (if death is by accident)
⦁ Burial warrant issued by Local Government Council
⦁ Certificate of death/cause of death
⦁ Copy of Obituary poster (if any)
⦁ Declaration of Wish/Evidence of nomination of next-of-kin
⦁ Letter of Administration
⦁ 3 months payslip preceding the date of death`
16. Can an Employer deduct any outstanding debts of the employee from the benefits payable in the event of death?
The Employer does not have the right to make any deduction from the benefit payable. The total amount of benefits must be paid in full.
17. How long does it take for claims to be paid under the circumstances below, to Next-of-Kins or Dependents of deceased Officers? Benefits?
When there is Insurance Cover, Claims notified, with complete documentation are processed and settled within One (1) month of receipt of such request by the Insurance Company.
When there is no Insurance Cover (Backlog Period)
Claims are processed within 5 days of notification by the Office of the Head of the Civil Service of the Federation and inputed into the Database, waiting to be paid as soon as funds are released by the Federal Ministry of Finance, on a first come first serve basis.
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