THIS Statement is issued to the public and especially to those who spend their entire time on the social media, to bring some facts on the Government approved Medical and Life Insurance Policy for the Public Servants.
The Ministry of the Public Service and the Department of Personnel Management is mandated under the Public Services (Management) Act and the Public Service General Orders to take care of the terms and conditions of the public servants. Apart from the salaries of the public servants, considerations by the Government must be for housing and medical insurance. These issues have been talked about for many years without any progress.
The Marape-Rosso Government through its Decision No. 178/2022 finally approved the Medical and Life Insurance (Funeral Cover) Policy to be implemented for our public servants across the country. The NEC also approved the establishment of the Public Service Niucare Association to manage this Policy.
This is a major policy and is the first ever in the National Public Service where we will see the State through the Public servants own this policy and will benefit them in the long run and contribute to a proper welfare system.
Since independence, the Government did not have any health and life insurance cover for its Public Servants. It was difficult for Public Servants and their families to sustain an affordable healthcare service or afford a private health and life insurance cover. This resulted in a costly healthcare for public servants and their families and funeral expenses incurred by the Government. We have seen a lot of our Public Servants die from preventable diseases on their job as they cannot afford the medication, and their health have not been considered whilst considering the time and effort put into their jobs in building this country.
The health challenges presented by the Covid-19 and the lifestyle diseases, brought urgency to the Ministry and the Department to consider improving the conditions of employment, considering emerging health challenges.
These issues and considerations cover Public Servants for the high risk associated with their line of duties and the employment environment within which they work. Recognition was granted to our frontline health service providers in awarding Health and Life Insurance Cover in their various Agreements, a classic example of the emerging terms and conditions of employment in the Public Service.
On this important Policy, consultations with key stakeholders began in 2020 and continued into 2021 and in the first quarter of 2022 on the policy, its benefits to the Public Servants and to the State.
Regional Awareness workshops continued in 2023 and 2024 to educate Public Servants to have an in-depth understanding of the insurance concept and its administration. The workshop was successful in delivering the policy awareness for all Public Servants. Awareness is continuing through TV advertisements and Radio advertisements. Positive feedbacks have been received throughout the regional workshop consultations.
NIUCARE POLICY.
The NIUCARE Policy is for all Public Servants who are employed by National Departments, Provincial Administrations and other fully funded agencies.
The Public Service NIUCARE policy is funded jointly by the Government, as its seed capital, and by the Public Servants, as their contribution towards the NIUCARE scheme. To realise the policy’s benefits, Public Servants must make a fortnightly contribution of 2.7% of their Annual Base Salary (ABS).
The Public Service NIUCARE policy covers the fortnightly membership contribution for; (a) Medical Care claims payments and (b) Funeral NIUCARE covers expenses and transportation costs to the burial place. The Public Servants are the owners of this Policy.
THE GOVERNANCE ARRANGEMENT.
As part of the governance arrangement to establish this Scheme, the NEC approved the Public Service Niucare Association (PSNA) initially to operate under the Associations Incorporation Act of the Investment Promotion Authority, and further to transition the operations to be under an Act of Parliament. Currently a draft Bill is before the Office of State Solicitor for its assessment.
The Governance Board called the Public Service Insurance Board of Trustees is made up of Secretary for Department of Personnel Management as the Chairperson, members from Department of Finance, Department of Treasury, Department of Education, Department of Health, RPNGC. The key sectors of health, education and police represent their members. The Board has been meeting since 2023. The Board is managed by PSNA Inc. The Board through an open advertisement in 2023 appointed a CEO. The CEO is Mr. Sivakumaran Sathasivam and is a permanent Resident of PNG and has 30 years of industry experience both in Life and General Insurance.
Consultations have been made and are continuing with key stakeholders such as the Office of the State Solicitor, BPNG, Office of Insurance Commissioner, IRC, Department of Treasury, Department of Finance, the Public Employees Association and others to ensure that combined efforts are put together to implement fully this approved Policy by the Government.
CIRCULAR INSTRUCTION NO. 24/2024.
The Circular released to all public servants is a matter for ONLY Public Servants and not those who are NOT public servants.
The Circular introduces the rollout of the policy and its implementation. The implementation plan has been revised and will be rolled out on a phase-by approach. Some agencies of Government have written to express their support and interest to participate in this Policy. We are fully aware of the salary status of all public servants and therefore this Policy will not be implemented all at once. The commencement date as stated in Circular will be reviewed for a later date.
The Circular further makes clarity that for those public servants who are currently part of a Union/Association or contributing to other medical insurance firms will be part of this policy immediately until further not consultations are done with the Union executives.
The Department of Personnel Management will continue to communicate with all agencies of Government on this Policy.
As the country looks towards celebrating 50 years of nationhood, this is one of the signature Policies of this Government and we will support this Policy to implement it accordingly for the benefit of our Public Servants now and into the future.
