The Commissioner of Insurance, Ms Lydia Lariba Bawa, has observed that the insurance culture of Ghanaians is unsatisfactory.
She, therefore, called for the institution of compulsory insurances to increase insurance penetration.
Ms Bawa stressed that compulsory insurance was needed in order to compensate innocent third parties, who may suffer bodily injury, diseases or property damage, caused by the actions and inactions of individuals and businesses.
She was speaking at the inauguration of a six-member committee on compulsory insurance, in Accra.
Mr. Alfred Yaw Ofori-Kuragu, Glico General Insurance, is chairman of the committee, and the members are Mrs. Lena Adu-Kofi, Safety Insurance Brokers, Mr. Tawiah Ben-Ahmed, Saham Life Insurance Ghana, Mr. Henry Bukari, Phoenix Insurance; Ms. Adelaide Fiavor, SIC Insurance; and Ms. Aretha Duku, Ghana Union Assurance.
Ms Bawa asked the members to recommend to the Commission areas and classes of insurance that could be made compulsory.
She said although the workmen’s compensation Act, 1987, seeks to ensure that workers who are injured in the course of their duties get compensation from their employers, the law does not make the insurance of this liability compulsory.
That, according to Miss Bawa, made it difficult for some victims to be adequately compensated because some employers were unable to mobilize resources for this purpose.
“The current pensions arrangements do not have any insurance cover for death and incapacitation while some specified professions do not also have professional indemnity insurance. Similarly, it would be very useful to require hazardous trades and businesses to have compulsory public liability insurance,” she said.
Ms Bawa urged the members of the committee to research into the insurance industry and come out with comprehensive recommendations that would help the industry to realise the benefits of compulsory insurance as pertains in various parts of the world.
By Times Reporter