National Insurance Commission bans 2 insurance companies

National Insurance Commission (NIC) has barred two insurance companies from full operation.

It has also extended its deadline till end of 2018 for companies to meet its increased minimum capital gain. The Insurance Act requires that all insurance and reinsurance companies meet a minimum capital requirement of GH¢15 million.

The deadline which was originally set for 2015 was extended to the end of 2016 and 2017.

According to the Commission, about two insurance companies failed to meet the requirement and have been given up to the end of 2018 or be closed.

The Commission, however, fell short of naming the defaulting companies. The two companies have been barred from writing new business, advertisement and to seek permission from the commission before huge spending.

The Commissioner for Insurance, Justice Ofori, told Starr Business’ Osei Owusu Amankwaah that, the commission could close down the firms due to the huge repercussion to pension funds.

“If they don’t put their acts together, then we have to trigger the process and then see what to do with it; we probably have asked them to live, but we didn’t say for certain that we are actually going to close down any insurance company, just that they have to put their acts together before 2018,” Mr Ofori said.

He spoke on the sidelines of the launch of Unique Insurance’s ‘Unique Travel Policy’ for international travel. The Managing Director of Unique Insurance, Victor Obeng-Adiyiah said they are providing the first comprehensive travel insurance on the Ghanaian market.

“Like all travel insurance product we cover your personality and luggage; personally, it means when you are in the aircraft and involved in an accident, we cover various level of injuries. We cover 60,000 Euro of health claims,” Obeng-Adiyiah stated.

He added that the company is strategising to introduce another travel insurance which will cater for the domestic market.