National Medical & Life Insurance Scheme Overview

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Learn about the establishment and benefits of a new insurance scheme for public servants in PNG, following NEC decisions. Details cover purpose, background, structure, and implementation plans.


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National Medical & Life Insurance Scheme Overview

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  1. DPM REFORMS WORKSHOP NATIONAL AGENCIES Rise Up, Step Up, Speak Up Department of Personnel Management NATIONAL MEDICAL AND LIFE INSURANCE(NMLI) SCHEME FOR THE EMPLOYEES OF THE STATE PRESENTER : MR ELLISON KALIMET DEPUTY SECRETARY POLICY DEVELOPMENT & REFORMS www.dpm.gov.pg

  2. OVERVIEW 1. PURPOSE & BACKGROUND. 2. NEC DIRECTIVE. 3. POLICY & PLAN. 4. STRUCTURE. 5. HOW IT WILL OPERATE 6. BENEFITS PUBLIC SERVANTS AND STATE 7. BUDGET FOR 2023 8. IMPLEMENTATION 9. PROGRESSIVE UPDATE Rise Up, Step Up, Speak Up Department of Personnel Management www.dpm.gov.pg

  3. PURPOSE & BACKGROUND The Independent State of PNG does not have a Nationally owned Medical and Life Insurance Scheme for its Employees. In this National Health and Life Insurance Policy, Employees are defined as public servants employed by the GoPNG including Leaders under the SRC Determination. Insuring an health and life is an important element of a workforce. More recently, the COVID-19 pandemic has demonstrated the urgent need to have a medical and life insurance policy in place. Rise Up, Step Up, Speak Up Department of Personnel Management www.dpm.gov.pg

  4. NEC DECISION Reference 282/2005NEC 1.jpgNEC Decision 2005 Medical Insurance Page 2 (2).jpg (17 years ago) in which the NEC approved for the establishment and operations of a national insurance scheme which never got off the ground until recent directions from the Marape/Basil Government, and that formed one of the key result areas for the Ministry of Public Service, especially to look at improvements in the terms and conditions for our public servants. is made Decision to previous 2005 NEC decision Insurance No. Page Rise Up, Step Up, Speak Up Department of Personnel Management Medical www.dpm.gov.pg

  5. CONT: NEC Decision 178/2022 approval for the establishment of a National Medical and Life Insurance Scheme for Public Servants.NEC Decision No.178-2022.pdf Clause 5 of the NEC Decision: Commence the establishment of the Insurance concept as a registered Association pursuant to the IPA Act with the proposed name Public Service Niucare Association . Clause 6 of the NEC Decision: To be captured in a new Law as proposed by State Solicitor. Rise Up, Step Up, Speak Up Department of Personnel Management www.dpm.gov.pg

  6. Current arrangements in other Sectors Life & Health Insurance cover subsidy of K75 per fortnight had already been awarded to PNG Nurses Association, PNG Health Support Workers and MLTP to cover its members. PEA, its K30 premium for Life & Medical Cover. It was awarded based on the current Government directives on foot to cover medical insurance for all employees in the Public Sector. National Doctors Association, Police Association etc have their own insurance schemes. Rise Up, Step Up, Speak Up Department of Personnel Management www.dpm.gov.pg

  7. Sectors not insured/no arrangements in place 1. 140,000 public servants in national agencies and provincial administrations/district administrations. 2. Some Public Servants in public sector agencies and statutory bodies have joined other insurance firms in the absence of one for the Policies. 3. 111 Parliamentarians/MPs. 4. Judiciary. 5. Other sectors. Rise Up, Step Up, Speak Up Department of Personnel Management www.dpm.gov.pg

  8. NH&LI POLICY (KEY FEATURES) National Health & Life Insurance (NH&LI) Policy Policy is ready for launching. Policy will be compulsory for all public servants. Individual Policy Holder: 2.7% of Gross Base Salary. Family: Policy Holder plus Spouse & Children: 5.7% of Gross Base Salary. Insurance will cover two areas (1) Health & (2) Life. For health, it covers any medical expenses whilst Life will cover funeral expense when Public Servants pass on. State will no longer pay for funeral expenses but the insurance will do. Rise Up, Step Up, Speak Up Department of Personnel Management www.dpm.gov.pg

  9. STRUCTURE The Insurance Policy and Funds shall be managed by the Board of Trustees, to be called, the PUBLIC SERVICE INSURANCE BOARD OF TRUSTEES (PSIBOT). The Board of Trustees shall be served by PS Niucare Association headed by a CEO. The Board of Trustees members shall be appointed in accordance with the articles of an Association. The members shall come from the Public Service & the Industry. PSNA is an independent body not subjected to the Public Service and political directions Rise Up, Step Up, Speak Up Department of Personnel Management www.dpm.gov.pg

  10. CONT: PSIBOT comprises of the following members; 1) Chairperson Secretary, DPM 2) Member Secretary, Treasury 3) Member Secretary, Finance 4) Member Secretary, NDoH 5) Member Police Commissioner, RPNGC 6) Member Secretary, Education 7) Member CEO, Public Service Niucare Association The Board of Trustees is not subjected to any political or PS directions; it shall operate independently to serve the interest of PS insurance policy management. Rise Up, Step Up, Speak Up Department of Personnel Management www.dpm.gov.pg

  11. CONT: PSIBOT Management shall be independently operated on commercial terms and headed by a qualified and experienced person (CEO) who has many years of experience in the insurance industry globally. The CEO shall determine the Association s structure, establishment and running cost. The Association will initially start up in the Nation s capital and then extend and open up offices in all the Provinces. It is anticipated that the Association shall have over 300 positions or staff once it is fully established and operating in all the provinces. Rise Up, Step Up, Speak Up Department of Personnel Management www.dpm.gov.pg

  12. How it will operate: The Public Service Insurance Board of Trustees (PSIBOT) will be established to manage the insurance scheme. Commencing in early 2024, about 140,000 Public Servants proper will contribute a premium amount of (2.7% of gross salary for Single or 5.7% of gross salary for family) to the PSIBOT. The premium amount will be splitted to cater for health & life policy cover. Rise Up, Step Up, Speak Up Department of Personnel Management www.dpm.gov.pg

  13. Cont.. For Health policy, if you are sick you go to the medical centre or see a doctor to get treatment and bill is sent to PSIBOT for payment but later all Policy holders will hold a Card that can be used to pay medical expenses by the PSIBOT. If death results, funeral expenses (includes; Funeral home, Coffin and repatriate of body to Village) will be paid for by the PSIBOT. Any balance remaining when policy holder dies, will be paid to the next of kin (family members or beneficiaries) as per the Policy agreement. Rise Up, Step Up, Speak Up Department of Personnel Management www.dpm.gov.pg

  14. BENEFITS FOR PUBLIC SERVANT(Policy Holder) There will be financial security for all Public Servants after serving the State. If a Public Servant resigns, full contribution shall be repaid to the Public Servant. During employment tenure, medical expenses will be fully paid for by the PSIBOT During employment tenure period, if a declared family member dies, a percentage of benefit is paid for funeral and repatriation expenses. Rise Up, Step Up, Speak Up Department of Personnel Management www.dpm.gov.pg

  15. CONT: For example, if a spouse or children or dependent dies, the spouse gets 50% of the payable benefit , the children receive 25% . If there are two children they share the 25% which means each child gets 12.5%, if there are three children, they get 8.3% each. All these arrangements shall be declared and built into the Operational document up front. Rise Up, Step Up, Speak Up Department of Personnel Management www.dpm.gov.pg

  16. BENEFITS FOR THE STATE Once the NH&LI policy operates or with effect as of mid 2024, departments and agencies do not have to pay for funeral and repatriation expenses for those Public Servants who come from other parts of PNG. SMEs will be set up to provide Medical services more doctors in rural areas to cater for sick public servants in consultation with the Medical Board Creating employment opportunities for PNGs. Rise Up, Step Up, Speak Up Department of Personnel Management www.dpm.gov.pg

  17. IMPLEMENTATION Rise Up, Step Up, Speak Up Department of Personnel Management The Government will undertake to seed the Initial Establishment & Infrastructure Setup Cost of K10.0 Million per Year for the next 5 years beginning 2022/2023. The SEED Capital will be utilised to : 2023 Budget: K6m has been allocated under Item 207. 2023 Workplan Draw down of K6m 2023 Work plan.pdf Capitalise for the Licensing Requirements. Infrastructure Development of PSIBOT through the ownership of Public Servants Insurance Board of Trustees (PSIBOT). www.dpm.gov.pg

  18. BRIEF PROGRESSIVE UPDATE Two board meetings have been conducted. First Board meeting held on the 29 March 2023 and the second on the 6 October 2023. Special Board Meeting 1/2023 held on 20thOctober 2023 K6 million has been warranted into DPM account in the third Quarter 2023. CEO has been appointed by the Board in its meeting No.2/2023. CEO will be responsible for managing and administering the Insurance Policy & its fund. Concurrently, Niucare Act is being drafted. Circular Instruction signed and will be circulated to inform the Public Service about the National Medical & Life Insurance. Rise Up, Step Up, Speak Up Department of Personnel Management www.dpm.gov.pg

  19. Rise Up, Step Up, Speak Up Department of Personnel Management THANKYOU FOR LISTENING www.dpm.gov.pg

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