No insurance policy can be made compulsory unless it is backed by law – Analyst

National Insurance Commission The National Insurance Commission (NIC)

Thu, 27 Jan 2022 Source: www.ghanaweb.com

NIC debunks reports of approving ‘Akwabaa’ Insurance

NIC is the insurance regulator in Ghana

Only NIC can make travel insurance compulsory

Ernest Frimpong, an insurance analyst has emphasised the importance of the National Insurance Commission (NIC) as the insurance regulator in Ghana.

This comes after the Commission in a statement called on the public to disregard reports of a supposed compulsory ‘Akwaaba Insurance’ intended for all international travellers coming into Ghana.

Reacting to the development in an interaction with Citi Business News, Ernest Frimpong explained that although travel insurance is vital, it can only be deemed compulsory unless the NIC so directs and it is backed by law.

“Travel insurance is one of the non-life insurances that we have on the market and before an insurance product is sold on the market, it has to be approved by the National Insurance Commission. For any insurance to be made compulsory, it has to be backed by law. The current law that we have is the Insurance Act 2021 (Act 161)," Frimpong is quoted to have said by Citi Business News.

“It has certain compulsory insurance that have been prescribed by the Act including motor insurance, commercial buildings including those under construction and then the professional indemnity. So, for travel insurance to be made compulsory, it has to be allowed by the regulator which is the National insurance Commission to direct that it is backed by law”, he explained.

In the past few days, reports have emerged that the said ‘Akwaaba Insurance’ policy will be approved and implemented by the end of the first quarter of 2022.

It is also reported that some three indigenous insurance firms namely; Enterprise Insurance, State Insurance Company PLC (SIC) and GLICO Insurance had been contracted to implement the policy.

But the insurance regulator, the NIC in a statement issued on January 25, 2022 said it has not approved any such plans or policy and therefore asked the public to disregard the said claims.

Source: www.ghanaweb.com