News & Events

The Insurance industry in Ghana, wants to add its voice to the millions of Ghanaians whose hearts and minds go out in sympathy to the former 1st Family at this time of great loss.

The unfortunate fire outbreak that completely destroyed the residence and valuable belongings of the former First Family have once again drummed home the fact that disasters are a fact of life and are no respecter of persons. In our line of business, the insurance industry lives with this unfortunate reality everyday and not only do we manage the financial fallouts of such disasters but as human beings we very often cannot help but also share in the emotional trauma of unfortunate victims of such mishaps.

The entire insurance industry in Ghana sincerely empathises and sympathises with our former First Family at this very trying moment of such unimaginable loss. May the good Lord grant them the strength and courage to pull through courageously.

As we monitor developments and public reactions especially in the media to this unfortunate event, one thing that is coming up clearly and strongly is the issue of insurance for government properties. We believe it is time Government took a critical look at this issue in the light of other fires that have occurred in recent times at the Ministry of Foreign Affairs, National Commission for Civic Education, Ministry of Information, some public schools etc.

The Insurance Law of Ghana, Act 724 makes provision for compulsory fire insurance for "commercial buildings" which the law defines as "privately owned buildings to which members of the public ingress and egress for the purpose of obtaining educational or medical service, engaging in a commercial activity for the purpose of recreation or transaction of business."

While the insurance industry is working hard with other stakeholders to fully implement this statutory provision, the bulk of government buildings, vehicles and other properties remain uninsured. This situation places a great burden on the public purse by way of replacing or repairing such properties in the event of accidental loss or damage or when government is liable to pay compensation to victims of accidents.

Loss Mitigation

A very important aspect of insurance underwriting which we tend to gloss over is what is known as pre-loss survey. This is a survey carried out as part of the underwriting process by experts to determine things which are likely to increase the chances of a loss occurring. Recommendations are made to improve the situation and reduce the likelihood of a mishap and thereby mitigating the loss and/or its impact.
The insurance industry is ready to dialogue with government and stakeholders on the issue of insurance for various insurable risks carried by government agencies and departments on concessionary terms. As the saying goes, "A stitch in time saves nine".  

Once again, the insurance community extends sincere sympathies to His Excellency Flt Lt J. J. Rawlings and his family.

Nyamikeh Kyiamah (Mrs.)
Ag. Commissioner of Insurance
National Insurance Commission (NIC)

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