WORKMAN COMPENSATION INSURANCE: ESSENTIAL FOR SUSTAINABLE DEVELOPMENT IN MANUFACTURING COMPANY IN NIGERIA
Raji Oladeinde Akeem1 & Adegboye Emmanuel Olatunji2
1Department of Insurance, The Federal Polytechnic Ilaro, Ogun State.
Email: Akeemraji02@yahoo.com
2Department of Banking & Finance, The Federal Polytechnic Ilaro, Ogun State.
Email: adejuwonolatunji95@gmail.com
ABSTRACT
Workmen compensation is a policy affected by an employer on the employee in an organization which provides cover for financial benefits in respect of injuries, permanent or temporary disability or death of employees that arises during the course of work. Equitable compensation provided for the employee as a benefit will definitely increase the productivity of the organization and also there is possibility for such company to achieve its selective goals and objectives. Recently, companies do not comply to rules and laws by not effecting this policy on their workers. It is in this line that the research work aims at analyzing the effect of workmen compensation insurance on the employee performance of manufacturing companies in Nigeria. The study was carried out with 297 out of the 346 questionnaires that were administered and distributed to the staff of the manufacturing companies in Agbara, Ogun state. Data collected was analyzed, using STATA 10 data analysis statistical package to examine how workmen compensation policy affects the employee’s performance in manufacturing companies. Factor analysis was employed to make the regression analysis possible. The result of the analysis at 5 % level of significance (p < 0.000) shows that workmen compensation policy has significant and positive effect on employee performance, which will eventually increase the overall performance, productivity and outputs of manufacturing companies. Workmen compensation was also found to be a source of morale to workers in order to perform effectively and efficiently. To this end, it is recommended that manufacturing companies operating in Nigeria, should ensure that their companies’ boards of directors comply with the employers’ liability (Compulsory Insurance) Act 2004 as well as other statutes and also make sure all employees are insured by obtaining workmen compensation insurance policy.
Keyword: Workmen compensation, Sustainable Development, Manufacturing Company, Death benefit, Disablement benefit, Medical benefit.