Public Servants to have Life & Medical Cover

Public Servants in the country will now have access to a life and medical Insurance scheme that will benefit and cover the 130,000 public servants in national agencies, provincial and district administrations said Department of Personnel Management Deputy Secretary Policy and Reforms Mr. Ellison Kalimet. 

“The Insurance will cover two areas, health and life. For health it will cover any medical expenses while life will cover funeral expenses when a public servant passes on and the state will no longer pay for funeral expenses but the insurance will do” says Mr. Kalimet. 

This scheme will ensure financial security for all public servants after serving the state and if a public servant resigns, full contribution will be repaid to the public servant. During the employment tenure, if a declared family member dies a percentage of benefit will be paid for funeral and repatriation expenses. 

“The National Health and Life Insurance policy is ready for launching and will be made compulsory for all public servants and once the National health and life insurance policy comes into effect as of mid-next year, departments and agencies would not have to pay for funeral and repatriation expenses for those public servants who comes from other parts of the country,” said Deputy Kalimet.  

Mr. Kalimet made the presentation during the second of the Department of Personnel Management Regional Reforms Workshop will   

The government will undertake the seed initial establishment and infrastructure setup cost of K10 million per year for the next five years beginning in 2023 and K6million has already been warranted into the DPM account to cater for infrastructure development. 

He said according to a National Executive Council decision N0. 282/ 2005 the NEC approved for the establishment and operations of a national insurance scheme which never took off until recent directions from the Marape/Basil government. This led to the formation of one of the Key Result Areas for the Ministry of Public Service particularly to look at improvements in the terms and conditions of our public servants. 

By early next year about 120,000 public servants proper will start contributing a premium amount of 2.7% of gross salary for singles and 5.7% for a family to the Public Service Insurance Board of Trustees or the PSIBOT and the premium amount will be divided to cater for health and life policy cover. 

The Public Service Insurance Board of Trustees (PSIBOT) will be established to managed the Insurance scheme and shall be an independent body, operating on commercial terms and headed by a chief executive officer who is going have many years experience in the insurance industry globally. 

The PSIBOT will comprise of the following members; Secretary DPM as chairperson, Secretary of Treasury, Finance, National Health Department, Education, the Police Commissioner and the CEO of Public Service Nuicare Association will all be members of the board of trustees. 

Furthermore, Deputy Secretary Kalimet said a circular instruction will be signed and circulated to inform the Public Service about the National Medical & life Insurance Policy.