TheCable

Figures from the Nigerian National Petroleum Corporation (NNPC) group life assurance scheme has shown that claims settlement has been consistent over the last 10 years.

In the first three years between 2010 and 2012, claims settlement were highest in 2011 with N2.09 billion over a premium of N2.42 billion, followed by N1. 88 billion as against a premium of N2.69 billion in 2010 and N1.51 billion claims on a premium of N2.03 billion in 2012.

However, the claims collected by the NNPC in 2013 and 2015 surpassed the premium paid.

The corporation paid N2.66 billion in 2013 and received N2.74 billion while it received NN2.94 billion for a premium of N2.35 billion in 2015.

In 2014, a premium of N2.65 billion was paid which led to a claim settlement of N2.36 billion.

Records show that the corporation received a claim of N2.36 billion in 2016 against a premium of N2.45 billion and received a claim of N2.83 billion against a premium of N2.37 billion in 2017.

In 2018, claims collected totalled N2.47 billion and N2.67 billion in 2019 against a premium of N3.01 billion respectively.

The NNPC is currently being investigated over claims of a $179 million insurance policy and alleged unsettled life insurance claims.

There are also allegations of poor handling of group life insurance schemes, non-payment of deductions on entitlements of the surviving families and its effects on the productivity of the working class.

Records also show that the premium paid by the NNPC and joint ventures since 2013 to the current insurance year (2020/2021) has declined despite an increase in the value of assets through new investments and acquisitions.

A total of $79.8 million was paid as premium in the 2014/2015 insurance year against an asset value of $50.3 billion.

In the 2020/2021 insurance year, the premium paid declined to $39.6 million against an asset value of $68.9 billion.