The National Industrial Court sitting in Lagos has ordered Niger Insurance Plc to pay Charity Ojakovo the outstanding sum of N17.1 million, being the unpaid terminal benefits of her late husband, Christopher, and directed the company to comply within 30 days, failing which the judgment debt will attract 10 per cent annual interest.
Justice Anthonia Ubaka held that Ojakovo is entitled to the full outstanding balance of her late husband’s terminal benefits, noting that the company’s own records and correspondence established a clear obligation to settle the debt in full.
The case arose after the claimant informed the court that her husband, who was an employee of Niger Insurance, died in June 2015.
She stated that in October of the same year, the company issued a letter confirming that the total terminal benefits due to the late Christopher amounted to N46.1 million.
According to her, after she and members of her family completed and signed the necessary withdrawal of service and claims documentation, Niger Insurance proceeded to pay only N29 million in instalments between 2016 and 2022, leaving an outstanding balance of N17.1 million which the company allegedly refused to settle despite repeated demands.
She told the court that the continued non-payment of the balance subjected her to severe financial hardship, emotional distress, and other personal difficulties, prompting her to seek judicial intervention for the recovery of the outstanding sum.
However, Niger Insurance failed to enter appearance or file any defence throughout the proceedings, despite being duly served with the originating processes and hearing notices.
In delivering judgment, Justice Ubaka observed that the defendant did not dispute that the deceased employee had fully earned his terminal benefits, nor did it challenge the evidence presented by the claimant.
The court held that the company’s letter acknowledging the sum of N46.1 million as payable constituted a clear and binding admission of indebtedness.
The judge noted that having already paid N29 million out of the admitted sum, Niger Insurance had a legal and moral obligation to remit the outstanding N17.1 million to the claimant, adding that the continued withholding of the balance was wrongful and unlawful.
Justice Ubaka also awarded the sum of N500,000 as cost against Niger Insurance and ordered that all sums, comprising both the outstanding benefits and the cost, must be paid within 30 days of the judgment, failing which the total judgment sum shall attract interest at the rate of 10 per cent per annum until full liquidation.