Insurance operators have said that workers who took job loss insurance covers before the commencement of COVID-19 pandemic will get insurance compensation.
According to them, the compensation would be in form of regular monthly salaries that would be paid by the underwriters for a year or until the beneficiary gets another job.
The Chairman, Nigerian Insurers Association, Mr Tope Smart, said the sector would have to attend to claims that arose as a result of the COVID-19.
He said some workers might lose their jobs, but would have to get insurance claims because some underwriters provided job loss insurance covers.
Smart also said that some shop owners that their shops were burgled, might also apply for claims to cover their losses.
The Managing Director, Anchor Insurance Company Limited, Mr Ebose Osegha, said workers who took appropriate covers for their jobs and did not default in premium payment would enjoy the benefits of insurance if there was a loss.
According to the operators, the main features of the job loss cover was that the insurance company would start to pay the sacked worker the salary earned from the last employer, and this could last for up to a year or more.
A worker could only enjoy the benefit of the policy if he paid the premium regularly, the underwriters stated.
For a job loss insurance cover, the premium was being calculated using some complex parameters supplied by the employee, including previous employment history or previous loss of job, age, marital status and educational qualifications.
Other parameters included industry and company of the employee, job profile (grade/position and department), gender, monthly gross salary, and monthly insured salary (provided the employee is not willing to insure the entire salary).
The scheme did not encourage insuring any amount above an employee’s gross monthly salary but there was opportunity to underinsure.
According to the underwriters, the loss of employment income insurance was a policy with a promise to indemnify an insured for accidental loss of his/her insured income within the terms and conditions specified in the policy