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The Ghana Insurance Brokers Association (GIBA) has submitted comments on the new premium credit guidelines for consideration.

GIBA has called on the National Insurance Commission (NIC) to take a look at the selling of all compulsory insurance lines on cash basis, saying that would not be viable.
 
 According to GIBA's comments, fire premiums could be very high, especially commercial fire, and with their experience with clients they may not be able to raise upfront cash before cover is accepted.
 
GIBA explained that premiums for comprehensive motor tends to be high, revealing that some third party motor fleets may have as many as 1,000 vehicles on a single schedule and whose annual premium may be over GH¢100,000.00.
 
The brokers have therefore proposed that their position on cash basis business should require all written business lines whose premium is up to a fixed sum of GH¢200.00 be paid in cash.
 
GIBA stated that it should apply to all policies issued, such as bid bonds which usually have a lower premium and not selectively on compulsory lines.
 
It has also proposed that for easy administration of credit process information needed on credit agreement forms should be incorporated into various proposal forms issued by insurers.
 
 
However, GIBA has decried legislating who the client issues a cheque to and making compulsory the issuing of cheques in the name of the insurance companies, as this may hinder smooth client-broker-insurer relationship.
 
"The truth of the matter is that in this age of global best practices, brokers in Ghana have clients who are used to internationally accepted broking practices where brokers are not only allowed to receive cheques in their names but also issue policy documents on behalf of the insurer ."
 
Some of these clients have confidence in their brokers and prefer them to handle their payments, GIBA insisted.

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