How to Obtain a Group Life Insurance Certificate in Nigeria

Group life insurance is a vital part of employee welfare and a legal requirement for employers in Nigeria. According to the Pension Reform Act 2014, every employer with three or more employees must provide life insurance coverage equivalent to at least three times the employee’s annual total emolument.

What is a Group Life Insurance Certificate?

A Group Life Insurance Certificate is a formal document issued by a licensed insurance company. It confirms that a valid group life policy exists for employees of an organization. This certificate is essential for compliance with Nigerian labor and pension regulations and serves as proof of protection for employees in the event of death in service.

Why is It Important?

• Legal Compliance: Required under Section 4(5) of the Pension Reform Act.
• Protection for Employees’ Families: Guarantees financial benefits to an employee’s next of kin.
• PENCOM Compliance: Needed for annual submission to the National Pension Commission (PENCOM).
• Corporate Responsibility: Builds trust among staff and improves employer branding.

Requirements for Obtaining a Group Life Insurance Certificate

To obtain a Group Life Insurance Certificate in Nigeria, employers must meet the following requirements:

1. Registered Business Entity:
   • A valid Corporate Affairs Commission (CAC) registration.
2. Minimum of Three (3) Employees:
   • The scheme is applicable to organizations with three or more staff.
3. Employee Data Submission:
   • A schedule containing:
     • Employee names
     • Designations
     • Dates of birth
     • Annual total emolument (salary + allowances)
4. Payment of Premium:
   • Premium is calculated based on the total annual emoluments of employees (3x annual salary).
5. Selection of a Licensed Insurance Provider:
   • Must be registered with NAICOM (National Insurance Commission).
6. Policy Agreement:
   • Signing of a group life insurance policy agreement between the employer and the insurer.
7. Submission to PENCOM:
   • Once issued, the certificate must be submitted to the National Pension Commission as proof of compliance.

How to Obtain a Group Life Insurance Certificate

For Employers:

1. Choose a licensed insurance provider.
2. Submit the required employee data and business details.
3. Pay the calculated annual premium.
4. Receive the Group Life Insurance Certificate upon successful policy activation.
5. Submit the certificate to PENCOM annually.

For Employees:

• Request a copy from your company’s HR or Admin Department.
• Ensure your name appears in the group policy’s covered staff list.

Validity and Renewal

The certificate is valid for one year and must be renewed annually before expiration to maintain continuous compliance with labor and pension laws.

Need Help Getting a Group Life Insurance Certificate?

Whether you’re a business owner, HR professional, or compliance officer, our team can help you set up or renew your group life insurance policy with ease. For more information on How to Obtain a Group Life Insurance Certificate in Nigeriacontact us at SOW Professional Services Ltd via ;

Website: www.sowprofessional.com

Phone: 07038254989

WhatsApp: 08152451523

contact us at SOW Professional Services Ltd via ;

Website: www.sowprofessional.com

Phone: 07038254989

WhatsApp: 08152451523