Ghana: Compulsory life insurance takes off this year

Bawa 　 　 　 　 　 　 The National Insurance Commission (NIC) has announced moves to implement a law that will make it compulsory for all employers to provide life insurance for their employees by the end of this year. The move comes after several stakeholders in the insurance industry called for its implementation. Ghana’s insurance laws make provision for workman compensation but not for life insurance. Commissioner of the National Insurance Commission, Lydia Bawa speaking to Citi Business News said her outfit is working towards making this a law for all employers. "Workman compensation is compulsory in this country. Every employer is obliged to compensate an employee who is injured in the course of employment. The insurance of it is however not compulsory, so most employers do not insure that liability," she said. Lydia Bawa added that "now we want to make that compulsory so that instead of retaining that risk, the employer transfers that to an insurance company so that when there is an injury to anybody the insurance company is called upon to meet the obligation on behalf of the employer." According to her, her outfit is in talks with the sector minister and "hope to have it by the end of the year." Neighboring countries like Nigeria fully implemented the law years ago. Meanwhile the insurance fraternity in Ghana has welcomed the move. President of the Ghana Insurers Association, Kwame Gazo Agbemyadzie tells Citi Business News the move will also significantly boost the financial sector and make more funds available for investors. "It is a positive development. It will create a large pool of funds for the insurance industry and as you know these funds will be available to industry and the economy and will help in long term infrastructure development." According to Kwame Gazo Agbemyadzie "because we don’t have long term funds, we use short term funds to finance long term projects which is putting a lot of strain on the financing of projects." The announcement of the compulsory life issuance policy was made at the official launch of a new life insurance firm, ESICH Life Assurance. Managing director of the ESICH, Richard Adu-Marfo tells Citi Business News they are rolling out an aggressive strategy to open up ten branches by the end of the year and expand to some other countries in the sub region within five years. "Of course we want to hit Ghana and hit it everywhere first. From there we will move into Liberia, Sierre Leone and to other African countries in the next five years"

Source Peace FM Online