Insurance Bill taken through second reading

Accra, Nov. 17, GNA - Parliament on Friday took the Insurance Bill through a second reading, a stage where the principles of a bill is considered.

The object of the bill is to revise the law relating to insurance in order to make comprehensive provisions for the regulation of the industry.

Nii Adu Daku Mante, Chairman of the Finance Committee of Parliament, presenting the report of the committee, said the bill would ensure the effective administration, supervision, regulation, monitoring and control of the business of insurance to protect the insurance policy holder and the insurance industry.

He however said health Insurance would be provided for under the National Health Insurance Act 2003 (Act 650).

Giving a background to the bill, Nii Daku Mante said the insurance industry is currently being regulated by the Insurance Law, 1989 (PNDCL 227), the Ghana Reinsurance Organisation Law 1984 (PNDCL 78), as well as the Motor Vehicle (Third Party Insurance) Act, 1958 (No. 42) and the Workmen's Compensation Law, 1987 (PNDCL 187).

He said the committee observed that the bill when passed would empower the National Insurance Commission (NIC) to conduct on-site inspection at the premises of insurance companies.

"This would enable the Commission to effectively carry out its policing and watchdog role," Nii Daku Mante added.

He said the committee noted that with the passage of the bill, it would be mandatory for insurers to separate life insurance business from other businesses, adding; "this measure would help forestall the situation where life funds are used for other businesses at the detriment of contributors."