Brokers want enhanced benefits for labour
Nigerian Council of Registered Insurance Brokers (NCRIB), the umbrella body of insurance brokers in the country has urged leadership of the Nigerian Labour Congress (NLC), to synergizeits efforts with related stakeholders in order to take advantage of the 2014 Pension Reform Act for the benefit of their members.
AyodapoShoderu, president, NCRIB who made the call during an interactive session between the NLC and Insurance operators held in Enugu said the welfare of workers should continually occupy premium position in the reckoning of governments in its economic development strides, pointing out that the quality of labour was a major index for determining the advancement or other wise of countries of the world.
He noted that countries such as United States of America, United Kingdom, Japan and lately, China, have attained their enviable state as developed nations because of due consideration their governments accorded labour
He specifically opined that the 2014 Reformed Pension Act has mandated employers to take Group Life Assurance for their workers, noting that the step would increase the regime of benefits that could accrue to workers in retirement.
“Aside from the increased pension contributions on the part of the employers, the reform provides that an employer’s contribution under the Group Life should not be less than 20% of the employees monthly emolument. In addition, a Group Life Insurance policy must be maintained in favour of the employee’s annual total emoluments similar to the old Act”.
Shoderu added that the elimination of Letter of Administration for the processing of Group Life to beneficiaries of deceased workers was also a good idea that has made access to death benefits by dependents much easier than it was before.
He regretted that in spite of extant laws on compliance with Group Life by employers of labour, government at the three strata, namely Federal, States and Local Governments have continued to be lax in compliance.
“The federal government and its agencies could be said to be less culpable as records shows higher compliance by federal government agencies. Some of the weak reasons being adduced was that the Group Life Insurance enforcement is a national law that must first be complied with by federal institutions for their workers while the states and local government could comply at their convenience. The fact must be made that law is law and must be complied with by all strata of government, irrespective of jurisdictions”.
To further drive home the benefits the Council suggested the following steps that could be taken by the NLC;
• The need to continually create platforms of interaction between NLC, employers unions and other critical stakeholders across the country to highlight the importance of the Group Life aspect of the new reform and need for compliance. In addition, it should also be the responsibility of Labour to meet minds with professional bodies, especially those that have to do with human resources or workers in order to explore the new reform in favour of workers
• Lobby of notable regulatory institutions to make evidence of compliance with Group Life a prerequisite for granting approvals or yearly renewals as presently being done for insurance operators who are requested to show such evidence before renewal of their yearly license with NAICOM
• Need to create more aggressive awareness campaign, encouraging workers to adhere to the new reforms Act and sensitizing employees to demand for compliance by their employers
• Readiness of Labour to take drastic or militant actions such as lock ups or picketing on companies that are unwilling to conform to the provisions of the Act
Aside from Group Life Assurance, the NCRIB also advised the labour organisation this medium to advise that the NLC could also push for adherence to Group Personal Accident covers for workers. This form of insurance will cover the worker against the risk of personal accident leading to injury or physical bodily damage in the course of work. It has remained regretful that many workers had been consigned to suffer in terms of dismissal or career regression when they suffer accident, leading to physical incapacitation.