Why FG re-introduces N5,000 compulsory insurance for FUCs

The Federal Government on Friday, said it has engaged the services of several insurance underwriters and brokers to provide comprehensive cover for the 104 Federal Unity Colleges (FUCs) across Nigeria.

Speaking at a weekly press briefing in Abuja, the Minister of Education, Malam Adamu Adamu, said the insurance policy will cover each student studying in any of the colleges with an annual premium of N5,000 payable along with their tuition fees.

Adamu noted that the policy which also covers vehicles and other physical infrastructures in all the colleges, was first instituted in 2014 but had challenges with implementation, assuring that the new policy will take effect soon.

The Minister explained that the idea of the student welfare insurance scheme (SWIS) is to ensure that once a child is admitted into any unity school the child will never drop out of school on account of loss of parents or guardians responsible for the payment of his or her school fees.

“In more specific terms, the policy provides for the following, death of student; in the case of death of a student, the parents/sponsor will be given a one-off payment in the sum of five hundred thousand naira (N500, 000.00 Naira) only.

“Death of sponsor; in the case of death of parent/sponsor, the student will be paid the sum of N500, 000 per session for a maximum of N2,500,000 only.

“Accident; in the case of accident of a student, the sum of N50, 000 only will be provided for medical expenses; and burial expenses; in the event of death of student/parent/sponsor, the sum of N50, 000 only will be provided for burial expenses.

“In other words, the insurance company takes over the payment of the child’s school fees from where the parents or guardian stopped.

“I want to use this opportunity to call on all parents, to honour this obligation on a yearly basis in line with government policy in this regard. The N5, 000 premium will be paid along with the school fees as it is part of the scale of fees. This policy is cheap compared to the expected enormous benefits it will confer on the parties,” he said.

While giving further breakdown of the areas the insurance will cover, he said the 326 Vehicles of the 104 Federal Unity Colleges would be insured, adding that the ministry engaged 2 Insurance Underwriters and Brokers to provide Comprehensive Insurance cover for the Vehicles.

“A total Premium of N70, 000,000.00 (Seventy Million Naira) only will be paid to the Underwriters and Brokers for this Comprehensive coverage. The total number of vehicles to be covered is 326 with a total value of N947, 260,000.00 only,” he said.

Adamu also noted that the policy will encompass fire and general peril cover for buildings and content of the 104 Federal Unity Colleges, adding that three underwriters and brokers had been engaged to provide the services.

“The total premium to be paid to the three (3) underwriters and brokers will amount to N198, 000,000 million for the 104 Federal Unity Colleges. This will provide a total coverage of N900, 000,000 million per school for buildings and N200, 000,000 million per school for content.

“For provision of comprehensive vehicle insurance cover for the vehicles of the 104 Federal Unity Colleges. The Ministry said 2 insurance underwriters and brokers have been engaged to provide comprehensive insurance cover for all the vehicles of the Colleges.

“A total premium of N70, 000,000 million will be paid to the underwriters and brokers for this coverage. The total number of vehicles to be covered is 326 with a total value of N947, 260,000 million,” he stated.

The Minister warned that any insurance company involved in the scheme that fails to honour its obligations will be severely dealt with.

“It is our expectation that this policy will lead to greater enrolment in our Unity Schools. By 2020, it is expected that enrolment in our Unity Schools occasioned by this policy would have increased by at least 20%,” he said.