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| Bawa |
Chuks Udo Okonta
Ghanaian insurance industry has set January 2, 2014 as
kick-off date for the implementation of no premium no cover policy.
The nation’s Commissioner for Insurance, Lydia Bawa, disclosed
this today Monday, in an interview with
Inspenonline at the on-going, West African Insurance Companies Association (WAICA)
Educational Conference in Lagos.
She noted that the menace
of granting insurance cover on credit has stemmed the growth of the industry as
most operators find it difficult to pay claims due to lack of fund.
She said: “The Problem we have in Ghana is about payment of
claims. Insurance companies are not paying claims, and that is giving us a bad
name. The insurers are not paying claims
because they are underwriting on credit. So, they are not able to generate
enough premiums, invest and make claims.
“I have learnt from the Nigerian Insurance Industry experience.
From discussion with Nigerian Insurance Commissioner,
Fola Daniel, I got to know that he introduced no premium no cover, to halt the
sales of insurance on credit and its is working well for the industry.
“With the policy, premiums are paid up front, underwriters
collect their premiums, invest and pay claims and everybody is happy. So, I
have decided to implement this effect from January 2, 2014. I have government’s
support to go ahead with it. At this stage, I have writing to the industry players,
for their comments, and after that, I would go ahead with the policy.
“I believe it would restore the confidence that is already
lost by policyholders and the general public. This is one major project I have
taken as the new Commissioner. “
She noted that having been an underwriter for 31 years, in
the Ghanaian insurance industry, she is abreast of all the issues in the sector
and pledged to reform the industry.
She said perception and mistrust has been the bane of the
industry, adding that most people believe insurers take premium and do not pay claims;
hence, they do not really trust insurance.
She called on insurers across Africa to intensify awareness
about insurance, adding that the apathy on insurance can be change through proactive
awareness creation.
She said the insurance penetration in Ghana is about 1.5 per
cent, stressing that the country is working towards introduction of Takaful.
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