By Etuka Sunday with agency report
The Federal Government has hired NICON Insurance Plc to insure 125,000 secondary school students scattered in 104 unity schools across the country, to control the consequences of Boko Haram insurgency and other forms of insecurity in the country.
With this development, each student of the unity schools is expected to pay N5, 000 premiums per annum. This means that the company would be raking in N625m per annum from the insurance scheme.
In a circular informing parents and guardians of the new fee to be paid, a principal of one of the unity schools in the country said the new policy was because of the general security challenges across the country.
The circular reads: “Due to the security challenges in the country, the Federal Ministry of Education has employed the services of NICON Insurance Company to insure Federal Government College students.
“Each student is expected to pay N5,000 yearly and also complete the form attached. This amount will be remitted into NICON Insurance account to be supplied later.”
In a telephone interview with journalists, Spokesman of NICON Insurance Plc, Mr. Ade Adesokan, confirmed that the company was in the process of rolling out the product. He confirmed that the company was the sole underwriter nationwide.
Adesokan said, “The student welfare insurance scheme is a product designed by NICON Insurance Limited to provide much needed benefits under a combined personal accident and life cover for the students and their sponsors.”
According to the company, in the case of accidental death of a student, the sponsor named in the policy would be entitled to N500,000.
In the event of the death of sponsor or guardian of a student, the student would be entitled to payment of school fees up to the year of graduation from the secondary school (maximum of N500,000 for this benefit).
NICON Insurance, a company that once belonged to the Federal Government was sold to business mogul, Jimoh Ibrahim, a chieftain of the Peoples Democratic Party (PDP) in 2006.
Investigation however showed that there was no bidding for the insurance contract which has been handed over to NICON Insurance as the sole underwriter of the 104 unity schools scattered across the country.