Head of Service raises alarm over non-payment of death benefits

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The Head of Civil Service of the Federation, Dr Folasade Yemi-Esan, has decried insurance companies’ lax attitude toward non-payment of civil servants’ death benefits, expressing her displeasure that these people are dead and unable to fight for themselves.

According to a statement by, Deputy Director, Communications, Mohammad Ahmed, Yemi-Esan, stated this during the meeting with underwriters of the Group Life Insurance Policy for Federal Civil Servants in her Office, Abuja.

She lamented that, while the federal government is doing its best to improve the welfare of families of deceased workers by releasing funds for the payment of death benefits as soon as possible, the underwriters and brokers are undermining the efforts with their lack of seriousness. She stated unequivocally that this lack of performance is unacceptable and must be corrected.

According to her, the meeting was necessary to bridge the gap that exists between the Underwriters and Brokers as it was unreasonable to continue doing the same thing repeatedly without achieving meaningful result. “If the Brokers are no longer relevant, then they should be blacklisted,” she added.

She informed them that payment of insurance claim is not rocket science, stressing that the Office of the Head of Service performs similar function by settling backlog of claims not covered by the present arrangement, seamlessly.

The Key Performance Indexes (KPIs) on settlement of claims as at September, 2022 indicates that the total number of claims reported was 776; number of claims paid was 357; total sum on claims reported, 4,201,392,384.27; number of awaiting EDVs from HoS/MDAs 101; total amount paid 1,574,709,562.12; number of awaiting DVs from LEAD Underwriter 150 (2,626,682,822.15), total amount expected from EDVs 785,123,928.73, number of incompletefa documentations 168 and total outstanding claims is 1,841,558,893.42.

Yemi-Esan further stated that from the breakdown of the report, there is a clear indication of a huge gap between the number of claims reported and those paid, adding that there is the need for improvement from the Insurance service providers, as there is always room for other alternatives.

In his remarks on behalf of the underwriters, the Lead Underwriter and CEO of Old Mutual (Nig.) Ltd., Mr. Segun Omosehin expressed his gratitude to the Head of Service for her concerns and show of outright displeasure with their low performance. He made a firm commitment to support the Head of Service by doing the needful to bridge the gap existing between the Underwriters and the Brokers, which he identified as the major issue responsible for the late payment of claims to families of departed Civil Servants.

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