The NSS Life Insurance policy is bogus
I happen to stumble across a group of young men who are serving with the National Service Scheme and the atmosphere was rather filled with suspicion and disappointment regarding NSS life insurance policy. They feel the policy should be made optional because it remains unclear the compulsory nature of it is bogus. This is what the leader of the group had to say:
The life insurance policy is illogical and a broad daylight robbery which must be scrapped or made optional. We have no problem with the government but with NASPA and NSS. The government has already started fulfilling its part of the obligation hence we the national service personnel (NSP) in return want to joyfully and peacefully render our services to the nation without hesitation. NASPA Executives and NSS Authorities are rather distracting us with their so called Life Insurance package hence should be warned. We want to concentrate and work.
As part of the 40.00ghc we paid to NSS through ADB before we were allowed to enroll for national service, 20.00ghc from that money was meant for our online registration, 10.00ghc for the NSS ID cards and 10.00ghc for NASPA dues.
Out of the 10.00ghc we paid to NASPA as dues, 1.00ghc from that money was supposed to be our welfare dues. We are not the first batch of NSPs to pay this welfare dues to NASPA. Some of the previous year batches have also paid and the subsequent year groups are also likely going to pay.
Are the NASPA Executives saying that this money cannot be pooled or managed properly to support our families in case of death or injuries? That is rather unfortunate!
Why would they rather prefer deducting 15.00ghc from our monthly allowances and dashing it to private companies? It would be unwise on our part to keep quiet and accept this incomprehensive policy. When we fail to do something about it, our children are also going to pay it in the near future. It would be an insult on our intelligence and integrity as graduates who are expected to know better. We shall go all out to prove our case if NSS authorities and NASPA executives pay deaf ears to our plight.
We are simply saying NO to the compulsory NSS Life Insurance. IT MUST BE OPTIONAL or discouraged. Why should we pay for welfare and again pay for an insurance? Is it not a waste of resources? We have no agreement with NASPA or NSS to deduct premium from our nontaxable monthly allowance to pay for an insurance. GLICO and MTN should also take note that we have no contract with them.
An insurance is supposed to be a means of protection from financial loss. The loss may or may not be financial, but it must be reducible to financial terms, and must involve something in which the insured has an insurable interest established by ownership, possession, or preexisting relationship.
Unfortunately, the proposed NSS Life Insurance Package is more like a strategy to rob funds from we the NSPs and give to a private insurance company under the pretext of life insurance if not a complete waste of funds from NSPs by NASPA and NSS. This must be discouraged.
This year alone, according to NSS, 58,000 NSPs were paid their September allowances but 8,000 NSPs have their allowances withheld. This means about 66,000 NSPs were posted to do service this year hence our welfare dues for the 2017/18 service year alone is expected not to be less than 66,000ghc. Does it mean that NASPA cannot gradually pool funds from this yearly welfare dues paid by NSPs to support our welfare?
To add to our earlier points, there is no life insurance policy that has a life span of only one year. What happens to the policy after that one year? Would we be given maturity claims after the one year period when our premium automatically stops coming or we would be permitted to renew or convert into a permanent life insurance?
In as much as we appreciate the efforts of NSS in trying to seek our welfare, we wish to state categorically that this particular package is not endorsed by us hence should not be made compulsory.
A limited life insurance is usually renewable and sometimes, it is convertible into a permanent life insurance. Once that period or “term” is up, it is up to the policy owner to decide whether to renew or to let the coverage end. This type of insurance policy contrasts with a permanent life insurance, which is intended to provide a life-long protection to the policy holder.
Taking the one year period NSS Life Insurance policy into consideration, as a service person, we do not even know if the policy is renewable or not. Is the policy insurer (GLICO) going to pay us any claim at the end of the period or we would be required to renew or convert it into a permanent life insurance? These are reasons why the policy must be made optional so that an NSP can decide to sign onto it at his or her own risk.
In principle, one would have to understand how an insurance package works before subscribing to it. Two of the most important components of all the insurance policies are the premium and the deductible. A firm understanding of these two concepts goes a long way to helping one in choosing a policy that is best for him or her. It is a risk which should not be made compulsory.
You cannot insure somebody’s life without even seeking the person’s consent. Even though we are under obligation to render service to the nation, our life is also not under the obligation of a group or an association. It belongs to God and our individual selves. Nobody can take a decision on it without even consulting us. We are not minors. Nobody should decide for us.
We are therefore appealing to the authorities of NSS, NASPA and the government to correct this anomaly so we can have our peace of mind to work.
AKORTOR, Cephas K.
On behalf of all the concerned National Service Persons of Ghana.