Public confidence in the insurance industry dips

Ho, Oct 10, GNA- Participants at a public lecture to mark Insurance Awareness Month in the Volta Region at Ho on Wednesday scolded the indust= ry for poor returns on premiums, delays in processing claims and murky and confusing policy details.

Colonel Cyril Necku, (rtd) Deputy Volta Regional Minister, who was guest of honour, led the public outcry when he said insurance claims paid= for his burnt brand new car was just enough to buy him two tyres. The expectation of the Deputy Regional Minister was that claims for a vehicle under comprehensive insurance cover should be enough to replace t= he lost one.

Mr. Christian Dordor, Lecturer in Business Finance at the Ho Polytechnic, said the popular impression held that life policies were onl= y beneficial to the holder when he died within term. Mr. Dordor hailed by scores of student participants from the Ho Polytechnic, said otherwise, claims paid at the maturity of the policy, m= ade the holder poorer. For him, since the premiums were to be invested, rate of returns sho= uld not be lower than Treasury bill rate and should also be indexed to rate o= f inflation. This brought the insurance executives present to their feet, all explaining that Mr Dordor's assertion was perfect looking at the finance point of view but there was more to that in relation to the insurance business.

Mr. Richard Yoa Fenuku-Doamekpor, President of the Ghana Insurers Association (GIA) and Col Necku both called for immediate improvement in the insurance business in the country. Mr. Fenuku-Doamekpor conceded that the challenge was huge and theref= ore the need for all in insurance to brace up, build confidence and trust in policy holders and stop premium undercutting. He particularly urged the media to help raise the stake of the insurance business in Ghana in national development. Mr. Fenuku-Doamekpor told the GNA that the developed world raises a lot of money from the business of insurance for investment and that Ghana mus= t be do the same. On his part, Col. Necku said Ghana must accumulate funds to invest i= n crucial areas, noting that the business of insurance "is a positive catal= yst in the investment process". "It is therefore not out of place to examine the performance of the insurance industry vis-=E0-vis the socio-economic and political climate o= f our country and offer appropriate suggestions for improvement".