Need for compulsory insurance cover for commercial buildings - Glover

Accra, Sept. 4, GNA - Mr Gabriel Glover, Executive Secretary of Ghana Insurers Association (GIA), on Friday said owners of commercial buildings and those under construction were obliged to take compulsory insurance cover against natural hazards such as fire, earthquake and flood.

He noted that the Insurance Act 2006 which established the Fire Service Maintenance Fund required owners of such buildings and those under construction to contribute a percentage of their gross premium received by each insurer into the fund. Mr Glover, who was addressing the closing session of a two-day information session organised by GIA for the media in Accra, said monies accrued would be used to purchase equipment for the fire service.

He said the Act stipulates that "every commercial building shall be insured with an insurer against the hazards of collapse, fire, earthquake, storm and flood and an insurance policy issued for it". Mr Glover explained that the fund would be used to equip state institutions assigned with fire fighting functions and other organisations determined for the purpose of fighting fires. He said the law preferred drastic actions against insurers who failed to comply and these included actions such as the revocation of the insurance licence of recalcitrant companies. 4 Sept. 09