The Employee liability insurance act and the Employee

Employee liability insurance is a type of insurance that all employers of labour with more than three employees are required to have under the Pension Reform Act. 

The law requires the employers to have insurance that will provide for compensation in the event of death, disappearance, disability, or critical illness suffered by staff while in service and to subsidies pension provision in the event of mental or physical disability. 

This law applies to both public and private sector employees. This means that employees (and their families) have the right to demand compensation and payment from their employers in the event of injury or death. The penalty for non-compliance with this law is N250,000, record of conviction, and in addition the place of business may be sealed up. 

Benefit of the group life insurance The compulsory group life is for the benefit of workers and if an employer refuses to implement it, such employer is short-changing the workers. Sadly, not much has been achieved in the implementation or enforcement of the law on compulsory insurances despite all efforts by the National Insurance Commission, NAICOM, so far.  The vanguard news reports this.

 Most employers are not actually aware of this act, while it is your responsibility as an employer to keep abreast of facts and laws that govern your business.

Most young employees might still be unwilling to concede to this, as they would feel they just need all the money now and its too early to start a life insurance.