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Insurance
firms that enlisted to participate in a group life assurance scheme
initiated in 2008 for all federal government civil servants have raised
alarm over series of anomalies uncovered under the programme.

The policy was supposed to start in 2004 under the Pensions Act, but did not due to the lack of experienced personnel.

In
a petition to the Acting President, Goodluck Jonathan, and the
leadership of the National Assembly, a copy of which was obtained by
NEXT, on Monday in Abuja, the aggrieved workers alleged, among others;
that the managers of the scheme compelled them to swear to an oath of
secrecy not to reveal the anomalies before enlistment into the scheme
for the year 2010.

The
insurers, comprising 26 underwriters and 109 brokers, are demanding
from government; the outstanding N2 billion premium for 2009 business
year, which they claimed had been diverted by Steve Oronsaye, the Head
of Service, into the settlement of the current year’s premium.

The
letter, signed by John Fidelis and Mike Olumoran, under the aegis of
2008/2009 Head of Service Group Life Assurance Consortium also alleged
that Mr. Oronsaye, who claimed that the government was misled on the
2008/2009 business by the lead broker, Leverage Insurance Broker, again
appointed the same broker as part of the advisors on the current 2010
scheme.

Oath of secrecy

The
insurers, who also forwarded copies of the signed agreement and the
list of insurers with the protest letter to buttress their claim, said
they were afraid to talk publicly about the decision because of the
oath they were compelled to take.

“Having
diligently carried out the assignment in line with the agreement, we
have been expecting the payment of our premium and commissions for
services rendered, but, contrary to the advice given to the Head of
Service for the payment of premium, Mr. Oronsaye withheld the N2
billion until last March 16, only to direct the AGF (Accountant General
of the Federation) to pay the premium to the newly appointed
underwriters and brokers for 2010 programme for the job they have not
done,” stated the petition.

The
insurers said they were unaware of how the balance of the money for the
2008 premium was spent when the complete records of all civil servants
that died during the year are yet to be given to them.

“About
N5 billion was approved as premium for 2008 for the group life scheme,
while another N1 billion was set aside for settlement for deaths during
the transition period of the group life between June 2004 and July
2007. Till date no account has been rendered to the consortium by the
lead broker, Leverage Insurance Broker and the lead underwriter,
Capital Express. Besides, our remuneration as underwriters and brokers
was based on N4 billion, instead of N5 billion,” they said in the
protest letter.

The
insurers also claimed there was no transparency in the process that
attended the appointment of five advisors for the 2010 scheme, who were
given the lion’s share of the business, leaving others to scramble for
a share of the balance of N1.2 billion of the premium.

Inflated premium

During
his meeting with the Nigerian Council of Registered Insurance Brokers
early this year, Mr. Oronsaye had alleged that the industry inflated
the premium for the scheme as a way of saving money for government,
claiming payment was made only for 2008 out of the two year contract
for 2008/2009 due to the high rate.

“They
(workers) took a cover for two years -2008/2009, and the premium was
paid for 2008, though we took out N1 billion to pay claims for people
that had died between 2004 and 2007 when the scheme ought to have
commenced,” he said. “Last year, they put pressure on me to pay the
2009 premium, and I said, ‘Pay what premium?’

You have given a rate of 6.5 per mille for poor civil servants, and
I asked them how they arrived at 6.5 per mille premiums, because I
wanted to know the rate of death and the rate of birth. Birth rate is
less than 3 percent and death rate is about 3.5 percent. So we are
paying triple if we are 6.5 per mille,” he added.