Business News of 2014-02-05

GIA heads to court over new insurance directive

The Ghana Insurance Association has told Citi Business News, it will head to court to repeal the new directive that prohibits government agencies from doing business with non state-owned insurance companies.
The association says some other countries have implemented a retaliatory action on some Ghanaian insurance companies making it difficult for them to do business in those countries.
There are reports that state-owned reinsurer; Ghana Re has received the backlash in Cameroun when the some of their private insurance firms have resolved to avoid doing business with them.
President of the Association, Kwame Gazo Agbenyadzie stated that this could a have repercussions for the industry.
He told Citi Business News, they might have to take legal action if other options are exhausted.
“So far we have submitted two petitions to government on the matter and no concrete action has been taken on the matter so it is now, we are still consulting and advising ourselves as to what steps to take to get government to respond to our petition.”
Mr. Agbenyadzie added that the Association has several options “which includes going to court because this is a directive I think undermines the insurance laws which repealed an earlier law that government business should be done by state owned companies. That PNDC law 227 was repealed by the insurance act 2006. So this completely undermines the act of parliament. We think that it is illegal and therefore we believe that and so if we go to court, we can get it overturned.”
Source: citifmonline
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