Economic news for Thursday, January 27, 2022
NIC debunks ‘Akwabaa’ insurance endorsement reports
NIC is the insurance regulator in Ghana
Only the NIC can make travel insurance mandatory
Insurance analyst Ernest Frimpong highlighted 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 supposedly compulsory “Akwaaba insurance” for all international travelers entering Ghana.
Reacting to the development in an interaction with Citi Business News, Ernest Frimpong explained that while travel insurance is vital, it can only be considered mandatory if ordered by the NIC and backed by law.
“Travel insurance is one of the non-life insurances that we have in the market and before any insurance product is sold in the market, it must be approved by the National Insurance Commission. insurance is made compulsory, it must be guaranteed by law. The current law we have is the Insurance Act of 2021 (Act 161),” Frimpong was quoted as saying by Citi Business News.
“It has certain compulsory insurance which has been prescribed by law, including automobile insurance, commercial buildings including those under construction and then professional civil liability. So, for travel insurance to be made compulsory, it must be authorized by the regulator which is the National Insurance Commission to order that it be backed by law,” he explained.
Over the past few days, reports have surfaced 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 native insurance companies, 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 had not endorsed any of these plans or policies and therefore asked the public to disregard said claims.