The controversial Employee Compensation Bill has continued to attract criticisms and condemnationfrom Nigeria’s Insurance Industry practitioners. The latest opposition to the Bill which is currently pending at the National Assembly is coming from the Nigerian Insurance Association (NIA).

In a strong worded memorandum to the Senate Committee on Employment, Labour and Productivity, NIA frowned at the legal document which seeks to replace the Workman’s Compensation Act 2004 and its replacement with an Employee Compensation Scheme to be managed by the Nigerian Social Insurance Trust Fund (NSITF)

The association’s knock against the Insurance Bill is coming on the heels of similar opposition to Bill by the National Insurance Commission (NAICOM) the apex insurance regulatory body in the country. NIA which is the umbrella trade association of all insurance companies operating in Nigeria, had in the representation signed by its chairman, Mr. Wole Oshin argued that the NSITF which transmitted from the defunct National Trust Fund (NTF) is incapable of handling the scheme as proposed.The prime indigenous insurance association said in the memo made available to Champion Insurance that it had after a careful study and review of the proposed Bill concluded that the inability of NSITF to effectively manage the deductions from workers salary, resulting in non payment of NSITF benefits to retirees clearly attests to its allegation against it.It explained that the Workmen’s Compensation Act 2004 was enacted to provide benefits for work-related diseases, injuries, accidents and death. Over the years, insurance companies in Nigeria have been providing workmen’s Compensation Insurance cover to private sector employers to enable them pay compensation to employees as required by the Act, emphasising that Nigerian insurers have played this role effectively by paying claims promptly as they arise as it is practised in most Common Law Jurisdictions and many other countries all over the world.

It was also of the opinion that it would be inappropriate and totally against the spirit of the Federal Government Reform Programme to again overburden a public institution with responsibilities that are being effectively managed by players in the private sector, saying, "Nigerians are aware of how public institutions vested with monopolistic powers and duties have fared. We are not sure that Nigerians want to go through that experience again".

It pointed out that the management of risks of accident, disease and death, and paying benefits to victims is the domain of insurance industry, adding that the NSITF does not have the training, knowledge and expertise to manage risks. "Under the present Workmen’s Compensation Act the liability for Workmen’s Compensation is on the Employers, and they are expected to insure the liability with insurance companies who must provide the money for payment of compensation whenever the need arises". It argued.

NIA drew the attention of the law makers to the under listed countries where the Workmen’s compensation and the benefits proposed under the Bill are currently being managed by insurance companies .

1.India :In India, Employer’s Liability Act of 1938 makes it imperative for insurance companies to provide cover for workplace injuries, diseases and death.