Pass Compulsory Insurance Act into law- NIC tells new government Featured

Jan 23, 2017

The National Insurance Commission has asked the new Akufo-Addo government to critically consider passing the Compulsory Insurance Act into law. This according to the Commission will secure the lives of vulnerable people in the society. 

The Commission laments the situation where individuals who rather need insurance to cover their daily activities paradoxically do not have strong purchasing power to subscribe to insurance policies.  

Currently, Ghanaians voluntarily buy insurance policies on their own, thereby giving them the power to unsubscribe whenever they want. The NIC estimates millions of people are not covered by any insurance policies; a situation the Commission finds worrying. 

Speaking to Goldstreet Business in an exclusive interview, Mrs Esther Armah, Senior Manager,  Supervision Department, said her outfit has done much to ensure the policy becomes law.

She opined, “Ghana can copy what Nigeria has done by making it compulsory for employers to deduct insurance premiums of their employees from source”

Mrs Armah, however, disclosed that the Commission has already set up a committee to review the Compulsory Insurance and Reassurance Act.

She said the committee has just finished its work and that stakeholders are yet to discuss the report.

The Commission is, among others, mandated to regulate the insurance industry to ensure more Ghanaians are covered by life insurances policy as well as general.



Insurers not to blame for unauthorized premiums deductions-NIC

The National Insurance Commission says insurance policy holders should not blame insurance companies for the deduction of unauthorized premiums from their accounts. 

Several individuals have expressed their frustration over insurance companies deducting monies from their account even when they have expressed disinterest in the policies 

The Commission has confirmed the receipt of several of such complaints from the public suggesting that insurance companies are using dubious means to extort monies from the public.  

Speaking to Goldstreet Business, Senior Manager, Supervision Department Mrs Esther Armah, explained however that monies are still deducted from accounts even when subscribers discontinue their policies because it takes a process to halt transactions. 

She further explained that in cases where the policy holders receive their salary through the Controller and Accountant General’s Department, it takes even longer to effect the change, so before that is done some deduction might have already been made.

However Mrs, Armah says Policy holders should also be held responsible because they do not use the necessary channels to get their grievances addressed. She indicated some aggrieved policy holders do not even contact their banks, which are the source deduction points, to prevent the insurance companies from undertaking such transactions.

She has therefore called on the general public to formerly address all complaints to the Commissioner of Insurance, or call personally at the offices of the Commission, for redress.  She assures a lot of measures are being put in place to curb the situation.