Police group life insurance: Facts behind the figures
The controversy over which brokers or underwriters were appointed to provide group life insurance cover for the Nigeria Police Force in 2013 financial year is unnecessary if the facts behind the figures are anything to go by.
While facts from the documents available to BusinessDay also showed no regulatory interference either on the side of the National Insurance Commission (NAICOM) or the National Pension Commission (PenCom), the advertisement dates for bids and eventual appointment of the insurers also clears the argument.
At first, it was no longer the responsibility of the Office of the Head of Service of the Federation to appoint insurers for the group life insurance of the Nigeria Police Force following the outcome of amendment of the Pension Reform Act in 2011.
The Pension Reforms (Amendment) Act 2011 provided that “The categories of persons mentioned in section 291 and members of the Armed Forces of the Federation in section 217 of the constitution of the Federal Republic of Nigeria, 1999 and members of the Intelligence and Secret Services shall be exempted from the Scheme.”
On the strength of this amendment, PenCom wrote the Inspector General of Police on August 07, 2012 to advise the Police Force “on the need to expedite action and solely/entirely handle the Nigeria Police Force’s Group Life Insurance Policy from 2013 financial year … and to make necessary arrangements to submit the 2013 budget proposal on Police’s GLIP to the Budget Office of the Federation.”
The NPF in a letter dated August 16, 2012 duly intimated the DG, Budget Office of their autonomy to manage their own Group Life Assurance Policy separate from those of the civilians and other forces, and “we are making arrangements for submission of 2013 budget proposal for the Nigeria Police Group Life Assurance.”
NPF subsequently, placed advertisement in the Newspapers on Friday, February 22, 2013 for “pre-qualification of Contractors for 2013 Recurrent/Capital Projects of the NPF” including procurement of Group Life Assurance Scheme 2013 policy year as LOT 16.
From the document with BusinessDay, a total of 20 insurance companies and 46 brokers participated in the pre-qualification process conducted by the Police Procurement Office.
On April 15, 2013 the PenCom via a letter advised the Office of Head of Service to allow the NPF handle its GLIP separately and on May 14, 2013 the NPF vide a letter, appointed Hogg Robinson Nig. Ltd as “the Lead broker to handle the Scheme for the year 2013. By this appointment, you will be expected to assist in getting financial bids/quotes from the pre-qualified underwriters, the letter read.
Between May 18 and 22, 2013 the underwriters submitted their quotes to the Lead Broker who thereafter, May 30, 2013 to be precise advised the Police thus: “As requested in your letter, we are pleased to forward herewith the various costs and benefits submitted by the Assures for your considerations.
Modestus Anaesoronye