Business News of 2014-03-21

Sale of insurance policies on credit to cease in April

The National Insurance Commission (NIC) is to implement a new policy that will debar insurance companies from selling insurance policies on credit basis by April 1, 2014.

The “No premium, No Cover” policy is to enable the companies to invest their funds appropriately, make adequate provisions for claims and fulfill the promises they make to policyholders.

The implementation of the policy comes in the wake of poor management and the inability of companies to pay their claims in a fair and prompt manner.

The Chief Executive Officer of the NIC, Ms Lydia L. Bawa, who made this known, said, “Insurance companies are to collect their outstanding premiums from policyholders or write them off as bad debt before December 31, 2014.”

She was speaking at the inauguration of the North Ridge branch of the Essien Swiss International Capital Holding (ESICH) Life Assurance office in Accra.

The ESICH is a life assurance company that provides a wide range of products.

Its products include the ESICH School Plan, the Wealth-creation plan and Employee benefits.

New guidelines

Ms Bawa stated that the NIC would soon come up with guidelines on the implementation of the “No Premium, No Cover” policy and the payment of claims for the insurance market.

The guidelines, she said, were meant to instil public confidence in insurance firms.

Child education

The Founder of the Esich Life Assurance Company, Mr William Ato Essien, urged parents to invest in their children’s education by insuring with the Esich School Plan.

According to him, the plan guarantees the best sustainable financial solution for quality child education, saying that its “flexible payment of fees allows the child to continue his or her education to the highest level”.

The Minister of State in charge of Financial and Allied Services, Mr Fiifi Kwetey, pledged the government’s commitment to collaborate with insurance companies to help them to contribute their quota to the development of the country.

The government, he added, would also support insurance companies to provide life insurance for employees in the country.