Probe uncovers gaps in NNPC insurance scheme

Nigerian National Petroleum Corporation (NNPC)

The ongoing probe of the Nigerian National Petroleum Corporation (NNPC) over alleged $179 million insurance policy and huge unsettled life insurance claims has uncovered gaps in claims settlement.

Investigation on the Group Life Assurance (GLA) scheme of the NNPC between 2010 and 2013 shows that the highest claims collected under the scheme was in 2011 with N2.09 billion over a premium of N2.42 billion, followed by N1. 88 billion as against a premium of N 2. 69 billion in 2010 and N1.51 billion claims on a premium of N2.03 billion in 2012.

However, In 2014, a premium of N2.65 billion lead to a claim settlement of N2.36 billion. However, claims collected by NNPC in the 2013 and 2015 surpassed premium paid. The claims collected in 2013 was N2.74 billion as against a premium of N2.66 billion while 2015 claims settlement was N2.94 billion for a premium of N 2.35 billion.

The GLA claims portfolio for the year 2016 showed a claim of N2.36 billion over a premium of N2.45 billion while 2017 saw a claim of N2.83 against a premium of N2.37 billion.

But in 2018 and 2019, claims collected amounted to N2.47 billion and N2.67 billion as against a premium of N3.01 billion respectively. Thus revealing an unexplainable huge differences in the 2018 and 2019 claims

For the $179 million premium allegedly paid by Nigerian National Petroleum Corporation (NNPC) and Joint Ventures (JVs), investigation showed that since 2013 to the current insurance year (2020/2021), the premium paid by NNPC has been reducing consistently notwithstanding that the assets value have been increasing through acquisition of new assets and new investments.

From a premium of $79.8 million and asset value of $50.3b in 2014/2015 insurance year, the premium has been on downward trend to $39.6 million with an increased asset value of $68.9 billion for 2020/2021 insurance year.

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