Business News of 2014-03-21

National Insurance Commission justifies 'no premium, no cover'

The National Insurance Commission says they had to introduce the “no insurance, no cover policy” to save the insurance industry.
The policy which comes into force next from month would bar insurance companies from extending cover to any individual or business that do not pay all their premiums upfront.
However some industry watchers fear this move would only worsen the current low insurance penetration in the country.
But Commissioner, Lydia Lariba Bawa disagrees.
"What we realised is that insurance companies all together are owed about GH¢130 million and this is affecting the liquidity and status of most of the companies, so they are unable to pay claims", she told Joy Business at the formal opening of Esich Life Assurance, the latest entrant in the insurance industry.
She said the lack of liquidity in the sector is the reason many Ghanaians perceive the industry to be unreliable.
Meanwhile the Managing Director of Esich Life Assurance Richard Adu-Marfo says they plan to revolutionise the insurance industry with well-tailored products and quality service.
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