By Favour Nnabugwu

Three months after the expiration of the 2010/2011 insurance year for Federal Government workers’ Group Life Insurance, the office of the Head of Service is yet to renew the policy for 2011/2012.

The Civil Service Group Life Insurance was renewed March 1, 2010 and should have been renewed by March 1, 2011 but up till the time of going to press, the account is yet to be renewed.

The delay to renew the policy by the Head of Service, experts say, may be connected to the fact that the office of the head of service is taking its time to properly screen insurance companies and brokers for the account to avoid a recurrence of the petitions and protests that trailed 2009 and 2010 renewal. As a result of this development, there is an extension of cover on the group life by the same insurance companies for 2010/2011.

It will be recalled that Senator Nkechi Nwaogu (PDP, Abia), Chairman, 6th Senate Committee on Banking and Insurance, had summoned Mr Steve Oronsaye, former Head of Service to the National Assembly over petitions on payment and selection of insurance companies for 2010.

A consortium of insurance firms had petitioned the Senate Committee over non-remittance of about N7 billion premium for management of civil servants’ Group Life Insurance scheme by the head of service.

The petitioners had said the office of the HoS failed to remit N2 billion even as it was provided for in the 2009 budget and that instead, Mr. Oronsaye had used the money as down payment for the 2010/2011 insurance years.

The consortium said: “N5 billion was the approved premium in 2008 for Group Life. N1 billion was set aside to settle deaths during the transition period of the group life. Till date, no account was rendered to the consortium by the Lead Underwriters.”

When they appeared before the committee, the petitioners alleged that the office of the HoS chose five consultants to manage 85 per cent of the premium for the group life insurance for civil servants with the firms also serving as brokers.

Speaking on behalf of the petitioners, Mr. Fidelis Ajufo said: “We also wish to state that the appointment of insurance brokers and underwriters for 2010 had not followed due process, as some of the insurance brokers were made to undertake oath of secrecy and some appointed insurance brokers do not have NAICOM licence and they do not belong to the Nigerian Council of Registered Brokers as required by the Insurance Act 2003″.