The Federal Government has tasked insurance practitioners to be alive to their responsibilities in settling outstanding group life claims amounting to N1,841,558,893.42.
The Voice of Nigeria reported that the Head of Civil Service of the Federation, Dr. Folasade Yemi-Esan, disclosed this as she decried the lackadaisical attitude of insurance companies over non-payment of civil servants’ death benefits.
She expressed displeasure with the continuous poor performance of insurance companies, during a meeting with underwriters of the ‘Group Life Insurance Policy for Federal Civil Servants’, in Abuja, noting that “the dead cannot fight for themselves.”
She lamented that, despite the Federal Government’s effort to improve the welfare of families of deceased workers through the prompt release of funds for the payment of death benefits, the underwriters and Brokers are frustrating the efforts by their unserious attitudes.
The HOS stated that their non performance was unacceptable and must be remedied.
According to her, the meeting was necessary to bridge the gap that exists between the Underwriters and Brokers as it was unreasonable to continue doing the same thing repeatedly without achieving meaningful result.
“If the Brokers are no longer relevant, then they should be blacklisted,” she added.
She informed them that payment of insurance claim is not rocket science, stressing that the Office of the Head of Service performs similar function by settling backlog of claims not covered by the present arrangement, seamlessly.
The Key Performance Indexes (KPIs) on settlement of claims as at September, 2022 indicates that the total number of claims reported was 776; number of claims paid was 357; total sum on claims reported, N4,201,392,384.27; number of awaiting EDVs from HoS/MDAs 101; total amount paid N1,574,709,562.12; number of awaiting DVs from LEAD Underwriter 150 (N2,626,682,822.15), total amount expected from EDVs N785,123,928.73, number of incompleteed documentations 168 and total outstanding claims is N1,841,558,893.42.
Dr. Yemi-Esan further stated that from the breakdown of the report, there is a clear indication of a huge gap between the number of claims reported and those paid, adding that there is the need for improvement from the Insurance service providers, as there is always room for other alternatives.
The Lead Underwriter and CEO of Old Mutual (Nig.) Limited., Segun Omosehin, expressed his gratitude to the Head of Service for her concerns and show of outright displeasure with their low performance.
Omosehin, who is the newly elected Chairman of Nigerian Insurers Association (NIA) made a firm commitment to support the Head of Service by doing the needful to bridge the gap existing between the Underwriters and the Brokers, which he identified as the major issue responsible for the late payment of claims to families of departed Civil Servants.