The package is aimed at providing benefits for mechanics that are exposed daily to deadly hazards in the course of their routine functions.
Speaking in Lagos on Friday, NATA National President, Micheal Ajayi Omonayin and General Secretary, Mr David Ajetumobi said the fresh initiative was partly a pension arrangement by an individual towards his future retirement needs.
Under the scheme, members are required make monthly, quarterly or annual contributions (as the case may be) and this will be accumulated (including interest additions) throughout the period of active service.
Omonayin said his group, after a long, exhaustive but useful deliberations, agreed to work with Mutual Benefits Life Assurance, Crusader Insurance, Capital Express, African Alliance and Standard Life Assurance while two insurance broking firms, Insurance Brokers of Nigeria (IBN) and Factors Insurance Brokers have been appointed to facilitate the project.
The contributions will be managed and invested by an insurance company acting as the fund manager and thus, the accumulated contributions will be used to purchase pension benefit which is payable at maturity.
At retirement from active practice, the benefits are payable at the chosen maturity age of the policy with an option to cover lump sum payment at maturity which could be guaranteed for a defined period (usually five years) and thereafter payable till death.
NATA said the life insurance benefit package for NATA members recognises the peculiar and obvious inherent risks associated with the performance of their duties, which includes accidental bodily injury resulting in physical disability and or death in course of carrying out official duties. The scheme covers the 36 states of the federation.
The artisans lamented that the Pension Reform Act did not have any provision for the un-employed persons and associations especially those whose employees are less than five even as there is no social security arrangement in Nigeria to cater for artisans.
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