GLA: NNPC Life Assurance scheme shows high claims ratio since 10 years — Report
The Nigerian National Petroleum Corporation (NNPC) Group Life Assurance (GLA) scheme claims ratio for the last 10 years have shown a strong and sustained claims settlement, according to investigations.
The finding continues as follows:
Analysis of the Corporation’s GLA claim settlement over the first three years shows the highest claims collected under the scheme was in 2011 with N2.09 billion over a premium of N2.42 billion.
It was followed by N1. 88 billion as against a premium of N 2. 69 billion in 2010 and N1.51 billion claims on a premium of N2.03 billion in 2012.
In 2014, a premium of N2.65 billion lead to a claim settlement of N2.36 billion. However, claims collected by NNPC in the 2013 and 2015 surpassed premium paid.
The claims collected in 2013 was N2.74 billion as against a premium of N2.66 billion while 2015 claims settlement was N2.94 billion for a premium of N 2.35 billion.
Further breakdown of the GLA claims portfolio for the year 2016 displayed a claim of N2.36 billion over a premium of N2.45 billion while 2017 saw a claim of N2.83 against a premium of N2.37 billion.
Though, with a slight difference in premium deposited by the corporation in 2018 and 2019, there was a huge gap in claims collected.
In 2018 claims collected was N2.47 billion and N2.67 billion in 2019 against a premium of N3.01 billion respectively.
In the meantime, NNPC said that it is currently being probed for alleged $179 million insurance policy.
Also under probe are alleged huge unsettled life insurance claims, poor handling of Group Life Insurance schemes, its effects on motivation and productivity of working-class citizens and non-payment/un-allowed deductions on entitlements of the surviving families.
The investigation was also stretched as far as the $179 million premium allegedly paid by Nigerian National Petroleum Corporation (NNPC) and Joint Ventures (JVs).
It showed that since 2013 to the current insurance year (2020/2021), the premium paid by NNPC has been reducing consistently notwithstanding that the assets value have been increasing through acquisition of new assets and new investments.
From a premium of $79.8 million and asset value of $50.3b in 2014/2015 insurance year, the premium has been on downward trend to $39.6 million with an increased asset value of $68.9 billion for 2020/2021 insurance year, the report showed.