Insurance awareness remains one of the most underappreciated pillars of workforce security in Nigeria, with alarming consequences. Despite legal mandates, a significant portion of employees remain unaware of their rights a gap that leaves many vulnerable when disaster strikes.
🔍 What We Found: A recent vox pop revealed only 4 in 10 Nigerian employees understand their mandatory insurance rights. Of these, only half are willing to assert them. The remaining 60% are completely in the dark. This ignorance is costing lives and livelihoods.
📉 Why It Matters: Experts warn that when workers don’t understand their entitlements, and employers fail to comply, the fallout can include legal exposure, loss of trust, and serious financial hardship for both individuals and businesses.
📢 Real Stories, Real Losses:
Wale Adebayo lost his hand in a factory accident, no compensation.
Amina, a nurse, now carries the burden of steep medical bills after a hospital collapse.
Joseph, a delivery driver, died in an accident, his family left with nothing due to fraudulent insurance coverage.
📚 What Are Employees Entitled To?
Employee Compensation Act (2010): Covers work-related injuries and fatalities.
Pension Reform Act (2014): Mandates Group Life Assurance, 3x annual salary.
Insurance Act (2003): Regulates Professional Indemnity Insurance for skilled professionals.
💥 What’s the Cost of Non-Compliance?
Up to ₦1 million in fines for failing Employer’s Liability Insurance.
Daily fines for lapsed Group Life policies.
For fake motor insurance: ₦250,000 fines, impoundment, or 1-year imprisonment.
Healthcare professionals without indemnity cover face ₦500,000 fines and license suspension.
📈 Insurance Industry: Growing Yet Hollow Despite a projected ₦2.5 trillion premium income in 2025, insurance penetration remains under 1%. Millions are still unprotected.
🚨 New Hope: Enforcement Rises NAICOM, the Police, and FRSC are cracking down on fake insurance. The judiciary, led by CJN Kudirat Kekere-Ekun, is pushing accountability across public safety sectors , including electricity to reduce workplace casualties.
🧭 The Way Forward:
Regular training from HR departments.
Mass media campaigns to raise insurance literacy.
Public-private enforcement partnerships.
Judicial oversight to ensure accountability.
The bottom line? Insurance is not just policy , it’s protection. It’s time we start treating it that way.
