Beginning Tuesday, April 1, 2014, insurance will no longer be on credit.
The directive is to enable the National Insurance Commission deal with the challenge of nonpayment of full premiums.
Until recently, policy holders were allowed to schedule payments for premiums above GH¢500 while those less than that amount are paid for, in cash.
But the inability of policy holders to promptly pay premiums is said to have contributed to the dwindling fortunes of the industry.
Joy Business reports that insurance companies are owed close to GH¢130 million representing close to 35 per cent of premiums underwritten.
According to the NIC, the directive, which is the practice in Nigeria, could help sanitise the industry.