NIC Advocates Compulsory Insurance

The Commissioner of Insurance of the National Insurance Commission (NIC), Miss Lydia Lariba Bawa has revealed that the insurance culture of Ghanaians is still very low, as such; the issue of compulsory insurances must be conceived as strategic importance to the industry and the nation to increase insurance penetration.

She said compulsory insurances are needed in order to compensate innocent third parties who may suffer bodily injury, diseases or property damage caused by the actions and inactions of individuals and businesses.

Miss Bawa said this at the inauguration of a six-member committee on compulsory insurances in Accra recently.

The members are Mr. Alfred Yaw Ofori-Kuragu, Glico General Insurance as Chairman; with Mrs. Lena Adu-Kofi, Safety Insurance Brokers; Mr. Tawiah Ben-Ahmed, Saham Life Insurance Ghana; Mr. Henry Bukari, Phoenix Insurance; Ms. Adelaide Fiavor, SIC Insurance; and Ms. Aretha Duku, Ghana Union Assurance as members.

She entreated the members to recommend to the Commission areas and classes of insurance that could be made compulsory.

The Commissioner said although the Workmen’s compensation Act 1987 seeks to ensure that workers who get injured in the course of their employment get compensated by their employers, the law does not make the insurance of this liability compulsory. This therefore made it difficult for some victims to be adequately compensated because some employers are not able to mobilize the needed resources for this purpose.

‘The current pensions arrangements do not have any insurance cover for death and incapacitation; some specified professions do not also have professional indemnity insurance. Similarly, it would be very useful to require hazardous trades and businesses to have compulsory public liability insurance,’ she said.

Miss Bawa therefore urged committee members to look deep into, and possibly research into all these scenarios and others, and come out with comprehensive recommendations that would help the insurance industry and the nation as a whole, to realise the benefits of compulsory insurances as pertains in various parts of the world.

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