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Life insurance: FG slashes premium to N7bn

By Patience Saghana

ABUJA—The Federal Government has slashed the proposed N20.2billion premium earmarked for its employees, including public servants, police and army to N7billion as it flags off the group life scheme in Abuja today just as it added 40 brokers to the existing five.

Though the group life took effect from 1 March 2010 with 17 companies approved by the government to provide life insurance for Federal Government employees in 2010 and five insurance brokers who are acting as consultants to the scheme before the government incorporated 40 other brokers.

Vanguard investigations revealed that the N20.2billion the Fderal Government proposed for the scheme has been slashed to N7billion.

The N7billion for Federal Government employees in 2010 include civil servants 3.0 per mille; para-military 3.15 per mille; police and security 4.54 per mille and armed forces 3.98 per mille but industry analysts are of the view that the N7billion may not be adequate for the claims that will arise from the scheme.

The Head of Service of the Federation, HSOF, Mr Stephen Oronsaye confirmed that the insurance cover for the group life scheme would be for a period of 12 months, stating that the standardization and effective monitoring of the policy would be administered by the office of HOSF along with the five brokers.


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