It was an opportunity to present this product to the financial directors, human resource managers and general managers. The sensitisation is a win-win situation to the workforce. Employers and ASAC presented the product that was still little known to companies which can take advantage of it. Rather than wait to pay indemnities which are social rights accumulated over the years, insurance structures and companies signed a Collective Agreement in which indemnities or social rights of private sector workers will be paid. Law n°92/007 of August 14, 1992 on the Labour Code authorises the establishment of collective conventions and agreements, as provided for in articles 52 to 60. Going by the arrangement, companies were supposed to regularly contribute the indemnities of their employees to insurance companies. In the accounting systems of companies, provisions are to be made for these allowances that have to be paid.
To the President of the Cameroon Insurance Association, the advantage is that the premium paid is tax deductible if a company subscribes to this insurance product. Martin Ndikum Foncha further says, “the product also gives the company the advantage of not paying a lot of money when there are massive lay-offs.” Subscribed companies pay following the terms of the agreement. It goes a long way to prevent discontent which results sometimes to angry protest demonstrations, when employees retire without receiving their indemnities or social rights in time.