This is a pathetic story of a woman I met recently who lost her father. She is the eldest of her family. The father worked in a company in Lagos and died while in active service. This man had several children all whom are still in school and their mother just a housewife. After the father died, they had hoped that the life assurance benefit of their late father would be given to them to take care of their fees, daily needs and the funeral expenses. This was not so. When they approached the company, they were shocked to be told by the HR that the (Group) Life Benefit will be paid directly to the late father's PFA by the Insurance Company! This was the beginning of their travails. This Lady being the only one working is now responsible for the funeral, fees of her younger ones, feeding, house rent, etc. while the PFA is smiling while 'investing' the deposit gotten from the Insurance company. Many months have gone past.. No show. No info! Ofcourse it is expected .... is it easy to claim or withdraw money from a dead man's account in Nigeria?

This story set me thinking and investigating why this is so..... I had no answers. But it appears that there is something that may be fishy between the insurance regulators and the PFAs. I say so because I was told by some HR that there was a circular to that effect from NAICOM but none of them have been able to show me a copy!

My little understanding of Life Assurance is that there is always a NAMED BENEFICIARY (ies) and in the event of death, it is this named beneficiary that collects the amount as specified by the deceased. No one is allowed to alter the will of a dead man. But why is NAICOM and the PFA doing this

Another issue is that if the named beneficiary of a LIFE Policy is different from the Next-of-Kin named in the PFA Account, it therefore means that NAICOM and the PFAs would have roobed Peter to pay Paul. This is also against the will of the dead.

It also seems that the PFAs in their bid to 'capture" enough deposits must have "lured or cajoled, marketed or manipulated" the insurance regulatory agency (NAICOM) to accept this. If so, it very sad indeed!

MY people, I want Insurance professionals and Lawyers to share their thoughts on this. Because so many children will continue to fall victims of this barbaric policy.

Please, please....