Celebrating Our Workers by Providing Adequate Insurance Cover

May 03, 2017

Last Monday, May 1, 2017 was Workers’ Day, an international holiday set aside to commemorate the struggle of workers, and their effort to secure decent wages and safe working conditions. May 1 was first declared an eight-hour holiday in 1889, by the International Workers’ Congress in Paris. Before it became a nationwide holiday, Workers’ Day was first celebrated in Nigeria by the government of Kano State in 1980.

Today, the struggle for worker’s safety is still ongoing, as workplace safety issues are still commonplace in many business environments. Following the celebrations, there is a need for business owners to consider putting measures in place to meet their responsibilities towards their employees and to protect themselves from the implications of risks encountered in working environments.

Read also on how to protect your businesses against risk

“In Nigeria, analysts say the work environment is increasingly getting precarious for millions of workers in different sectors of the economy, as they are daily exposed to worsening health and safety hazards, with increased cases of deaths and injuries at work,” a report by Daily Trust Newspaper states. Data obtained by the International Labour Organisation (ILO) show that 6,400 accidents or diseases resulting in 2.3 million deaths globally occur yearly. Records also show that 860,000 people are injured on the job daily, and over 313 million workers suffer non-fatal occupational injuries each year. The resulting consequence of this is a 4 percent loss annually in the global gross domestic product (GDP) or about $2.8 trillion in the direct and indirect cost of injuries and diseases.

Read also on how to have a suitable health care

Given these data, having insurance coverage is a priceless step to securing a business against loss, especially with respect to human capital (your workers). Indeed, the employees are the company’s most valuable asset. Having a proper insurance coverage for your employees – regardless of your staff strength – not only benefits your workers, but also protects your business as well. As a business owner, below are the types of insurance you should consider for yourself and your workers:

Employers Liability Insurance

Under the Employees’ Compensation Act 2010, employers are mandated by law to have insurance that will provide compensation for workers who may suffer from injury or disability, contract diseases, or even die, in the course of their employment. As an employer, you are required to make a minimum monthly contribution of 1 percent of the total monthly payroll into the Employee Compensation Fund. According to the Act, employees that suffer mental stress, occupational injuries and diseases, in addition to dependents of a deceased employee, whose death occurred due to occupational injuries, are entitled to compensation. This insurance policy helps bear the burden for claims, awards or settlements made under the Employee Compensation Act 2010 and legal expenses for such claims.

Health Insurance

In Nigeria, the National Health Insurance Scheme Act states that an employer who has a minimum of 10 (ten employees) is obligated to register them to contribute to the scheme. While this scheme may seem like it is not directly linked to the economic liability of your business, the fact that your health status and that of your workers can affect workplace productivity underscores the significance of this insurance policy.

Group Life Insurance

According to the Pensions Reform Act of 2003, “employers are required to maintain a Life Insurance Policy in favour of an employee for a minimum of 3 times the annual total emolument or pay of the employee.” This policy benefits family members who rely on the deceased’s income; life insurance will provide the financial compensation in the event of an untimely death.

The effect of taking up an insurance cover for a worker cannot be overemphasized. It benefits the business as it directly boosts workers’ morale and positively impacts their work input. It gives them confidence and is an outstanding form of motivation, especially in a line of work that may be high-risk.

Leadway Assurance Company Limited, knowing the value of workers to the success of a business, has an insurance package that will protect your workers against risks that may ensue in the course of their duties. The Leadway Business Owner Support Scheme (L-BOSS) is an insurance offering with different levels of cover designed to help protect small and medium-sized businesses against various risks. It includes the employee life assurance death-on-service life cover worth three times your employee’s annual salary as required by the Pension Reform Act and medical expenses cover, which medical expenses incurred by your employees as a direct result of an accident at work.

L-BOSS also provides coverage in the event of material damage to your business premises and the contents. It also provides motor vehicle insurance cover against lightning, limited explosions, natural disasters and theft; as well as occupier’s liability cover against possible legal suits relating to injury or loss suffered by visitors to your property.

So, never leave your invaluable workers unprotected. Contact our customer care line on (01) 2800 701, 2800 700 and 08129997070 or email: Lcs@leadway.com for additional information. You can also visit our website: www.leadway.com for more details on our products.

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