Fraudulent Insurance claims slowing down benefits payments

Accra, May 21, GNA - The growing incidence of fraudulent insurance claims is slowing down the period within which benefits are paid, Mr C.C. Bruce Jnr., Executive Director of Enterprise Life Assurance Company (ELAC) said on Thursday. Speaking at a public forum to present the 2008 financial performance of the company, Mr. Bruce Jnr. said ELAC had responded to the worrying trend by instituting both internal and external investigation systems to stem the practice. He said despite the challenge, the company had stuck to its benefit payment standard of settling claims in 48 hours and had been able to settle more than 50 per cent of Funeral Finance Policy claims within two days.

The company in 2008 paid GH¢2.8 million in benefits to policy holders, more than a two-fold increase from the previous year value of GH¢1.3 million.

It has also transferred GH¢4.75 million into a provision to enable it pay to future claims. Commenting on the general outlook of the Life Assurance Industry, Mr. Bruce Jnr. said the separation of life from non-life had strengthened companies and also provided more focus on life business. Besides it has engendered more competition as well as new schemes and products. However, he said, market penetration was still low and there was the need to focus on education to enhance public understanding of the need of holding life policies. While commending agents, brokers and Bancassurance to the continuous growth of the company, Mr. Bruce Jnr., however, stressed the need to step up premium collection, a challenge at both company and industry levels.

He said with an average collection rate of 75 percent, the company will continue with its efforts and support industry initiatives to engage various payment sources to improve collection rate. The company's gross premium income went up by 52 percent to GH¢15.4 million, giving it the number two position in the Life Assurance Industry.

Mr. Bruce Jnr. said the company would enhance customer service to improve service deliver to clients.

There are also plans to roll out new branches, deepen the use of technology to improve efficiency and reduce cost. Mr. Ken Ofori-Atta, Chairman of ELAC called for education and innovation to maintain the growth of the industry in the coming years. He said there was the need to continuously educate the public about the products and how they work and also innovation to do things differently. 21 May 09