Photo: Juganutt, Wikimedia Commons, CC BY-SA 4.0Group life insurance in Nigeria
What every employer must buy
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Get the free PDFThe rules, point by point
| Rule | Guidelines paragraph |
|---|---|
| Minimum sum insured: 300% of the employee's gross annual emolument | 4.6, 6.1 |
| The employer bears the whole cost, separate from pension contributions | 2.1 |
| Bought from a life insurer licensed by NAICOM; a life insurer may not insure its own staff | 2.2, 2.5 |
| Cover for 12 months, renewable; premium paid before the cover starts | 4.2, 5.7 |
| The employer gets a certificate within a month and displays a copy in its premises | 5.4, 5.5 |
| Renewal talks start in writing two months before expiry | 5.6 |
Source: Revised Guidelines on Group Life Insurance Policy for Employees, issued jointly by NAICOM and the National Pension Commission on 1 September 2020. Work out the minimum cover with the employer calculator.
When an employee dies
- The employer notifies the insurer at once and processes the claim for the family, in all cases within 365 days of the death (§7.1). If it fails to notify, it pays the claim itself (§7.2).
- The insurer accepts or rejects liability within 90 days of receiving the claim (§9.1) and pays within 90 days of the executed discharge voucher (§9.2), directly to the named beneficiaries, with no deductions (§9.5, §2.6).
- Disputes go to the insurer first, then to NAICOM, copying PenCom (§9.3–9.4).
If the employer had no group life policy, or insured less than 300%, it pays the beneficiaries the 300% or the difference (§7.3–7.4).
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Frequently asked questions
Is group life insurance compulsory in Nigeria?
Yes. Section 4(5) of the Pension Reform Act 2014 requires every employer to maintain a group life policy for each employee of at least three times the annual total emolument.
Who pays for group life insurance?
The employer, in full, in addition to its pension contributions; no deduction may be made from the benefit.
What if my employer did not buy group life insurance?
If an employee dies in active service without cover, the employer must pay the beneficiaries 300% of the gross emolument itself, and the employee or family can report the employer to PenCom.
Sources
- NAICOM and PenCom — Revised Guidelines on Group Life Insurance Policy for Employees (1 September 2020; Pension Reform Act 2014, s.4(5))
- NAICOM — Notice to the general public: insurance and reinsurance companies confirmed as compliant with the minimum capital requirements under NIIRA 2025 (31 July 2026)
- NAICOM — Notice to the general public: additional seven insurance companies confirmed as compliant with the minimum capital requirements under NIIRA 2025 (13 August 2026)