PUBLIC NOTICE: Compulsory Insurance for Private Commercial Buildings

PUBLIC NOTICE: Compulsory Insurance for Private Commercial Buildings

The National Insurance Commission (NIC) has shut down ZETA Insurance Brokers for operating illegally.

According to the commission, the said company has been operating for the past five years in Accra.

Addressing the media on Thursday, the Commissioner of Insurance, Justice Yaw Ofori says the Police are currently investigating the matter.

“We did our investigation based on the hard work of our Special Investigation Unit and those involved have been referred to the Police and I believe the Police have actually started with their investigation and eventually will prosecute them,” he said.

Under the Insurance Act, 2006, Act 724, it is an offence for a company to engage in the business of insurance with an unlicensed intermediary or broker. Mr Ofori says the insurance companies involved have been sanctioned.

He said, “With respect to the insurance companies that were doing business with them, they have been sanctioned and given fines.”

The NIC has therefore advised the general public to desist from engaging the services of ZETA Insurance Brokers for intermediary services as their operation is not recognized by law.

COI-Justice Ofori

The National Insurance Commission (NIC) has allayed fears that the decline in insurance penetration rate will hurt the sector.

According to the Commission’s 2018 report, the sector’s penetration rate dropped from 1.12 per cent to 1% – a situation the NIC attributed to the rebasing of the economy.

Addressing the media at this year’s Ghana Reinsurance Cedant Awards, the Commissioner of Insurance, Justice Yaw Ofori affirmed that the sector has seen the entry of more businesses as compared to previous years.

“Now we have oil and gas and the agricultural sector is also doing well so it doesn’t mean that insurance is not doing well,” he said.

As part of on- going efforts to stabilise, strengthen and enhance the capacity of the financial services sector to support socio-economic development, the National Insurance Commission has revised the Minimum Capital Requirements of all insurance entities.

The mandate of the Commission is to protect the interest of policyholders by ensuring a financially strong Insurance industry. The new MCR is one of the initiatives the Commission is taking to achieve this. The Commission strongly urges Shareholders, Directors and Executives of all Insurance entities to take all proactive steps to meet the new capital requirements by the set date.

Click on the link below to download the New Minimum Capital requirements  for Insurance Entities

New Minimum Capital requirements (MCR) for Insurance Entities

Pursuant to section 21, 45, and 114 of the Insurance Act 2016, Act 724 obligating all Insurers, Reinsurers and Intermediaries to pay for some of the specific services provided by the National Insurance Commission (NIC), the NIC presents the revised schedule of fees. Please note there is going to be annual reviews of fees after this review to reduce the likelihood of large increases in subsequent years.

Revised fees
The fees have been revised due mainly to the fact that:

  • There have been significant increase in the cost of goods and services, since the previous review in 2013.

Click on the link below to download the revised fees, which takes effect from April 1, 2019.

Revised Fees Payable to the NIC

The general public is being informed that the trial of the person accused of operating an unlicensed insurance company, Swaytel Insurance Company Limited, in Swedru has ended.

The accused person, Emmanuel Kwame Adjei, was found guilty and convicted by the court on all seven counts, including operating an unlicenced insurance company, forging of fake Motor Insurance Stickers, and defrauding by false pretense.

The judgment went in favor of the National Insurance Commission (NIC) and the accused person was sentenced to five (5) years in prison or pay a fine of 2,500 penalty units which is equivalent to Thirty Thousand Cedis (GH¢30,000.00).

The prosecution of the case was led by the Special Investigations Unit of the NIC.

 

As part of measures to deal with the problem of fake insurance certificates, the National Insurance Commission (NIC) is to roll out a central database system where all policies issued by insurance companies would reflect to ensure easy verification.

COI-Justice-Yaw-Ofori“We are going to have a system whereby it will be easy for the police to simply send a vehicle’s licence number to a short code for confirmation with respect to insurance,’’ the Commissioner of the NIC, Mr Justice Ofori, announced at the close of a one-week training workshop for 105 officers of the Motor Traffic and Transport Directorate (MTTD) of the Ghana Police Service in Koforidua.

He added that the system would also enable customers to confirm the authenticity of the insurance policies they purchased.

The training, which was offered by the NIC, formed part of efforts to strengthen the commission’s partnership with the police to let them appreciate the importance of insurance and the need for the two institutions to collaborate to keep the roads safe.

During the one-week training programme, participants were taken through police ethics, intelligence gathering, integrity, professionalism, techniques in road traffic management, handling of equipment to control or enforce road traffic laws, stress management and handling of psychological issues, among others.

Presentations were also made by resource persons from the Driver and Vehicle Licensing Authority (DVLA), as well as the National Road Safety Commission (NRSC).

Mr. Ofori said the enforcement of compulsory insurance compliance required the backing of the police because insurance companies could not do so by themselves and pointed out that without the police, there would be many vehicles with fake insurance certificates on the road.

He called on insurance companies to build confidence in the market by making sure they paid claims on time to win the confidence of the public.
Mr. Ofori said the NIC, as part of measures to revive the fortunes of insurance companies and build public confidence in the insurance industry, had collaborated with the Ghana Insurance College to run.

training for stakeholders in the industry, such as trade associations, the TUC, market women and driver unions, so that they could appreciate the need for insurance.
He said by next year the NIC would have trained at least 5,000 senior high school and university leavers across the country who would be certified to become agents and be readily available for insurance companies to employ.

Superintendent of Police Mr. Adu Boahen of the MTTD Headquarters said the one-week training was geared towards achieving the vision of the Inspector General of Police (IGP) of making the Ghana Police Service one of the best on the continent and in the world.

The National Insurance Commission (NIC) in its bid to promote efficiency and the development of the industry will be organizing a series of training programmes/workshops targeted at the key functionaries in the industry. A letter has been sent to the industry to that effect.

Please note that some of the workshops will be residential, whilst others will be non-residential. The NIC will subsidize the costs of all the workshops.

All companies are required to participate in the workshops, and ensure that the participants for the various target groups are present at the required programme.

The details of each workshop will be communicated in due course.

CEOs-Workshop_Insurers-40418The National Insurance Commission (NIC) in conjunction with the Ghana Insurance College (GIC), held a three-day residential workshop on Risk Management and Corporate Governance at the Coconut Grove Beach Hotel from 4th to 6th April, 2018.

The workshop, which is the first of the NIC’s 2018 training programmes for the industry, was for Insurance and Reinsurance Companies.

The workshop, which was fully sponsored by the NIC and was strictly for CEOs and Board Members, was attended by eighty-two (82) participants.

The three-day workshop covered relevant topics such as:
•    Risk Management
•    Importance of Data in Insurance
•    Business Strategy
•    Corporate Governance
•    Risk Based Supervision and Financial Condition Reporting.

The resource persons for the workshop were  Mr. Emmanuel Baba Mahama, a corporate governance and insurance expert, Dr. Isaac Baidoo, a senior lecturer at Department of Statistics at the University of Ghana, Legon, Colonel John Obiba Kuse of the  Ghana Armed Forces,  Mr Shikoli Makatiani of Turnkey, Kenya, Mr. Michael K. Andoh, the Deputy Commissioner of Insurance, NIC and Mr. Seth Eshun, the Head of Supervision, NIC.

It has come to the attention of the National Insurance Commission (NIC) that, a company by name Swaytel Insurance Company Limited is operating an insurance business without insurance licence.

The NIC wishes to inform the public that it has not licensed any company by name Swaytel Insurance Company Limited and therefore the said company is operating illegally.

The said company is issuing fake insurance policies (cover notes, insurance certificates and insurance motor stickers) to the public, especially, those within the Swedru, Winneba and Cape Coast areas in the Central Region.

All insurance policies issued by the said company are invalid.

The NIC hereby advises the public not to transact any insurance business with the said company or their agents henceforth.

Issued by the National Insurance Commission

The National Insurance Commission (NIC) wishes to remind the public that it is required of all owners or occupiers of private commercial organisations to obtain the Compulsory Fire Insurance for commercial buildings both completed and under construction, as per Sections 183 and 184 of the Insurance Act 2006, (Act 724).

A private commercial building under the law includes: “Privately owned building to which members of the public visit for the purpose of obtaining educational or medical service, engaging in a commercial activity for the purpose of recreation or transaction of business”.

THE COMPULSORY INSURANCE WILL COVER THE UNDER-LISTED RISKS:
1.    FIRE AND ALLIED PERILS (flood, earthquake, collapse of buildings, storm).
2.    Legal liabilities of an owner or occupier of premises in respect of loss of or damage to property, bodily injury or death suffered by all users of the premises and third parties.

COMPULSORY FIRE INSURANCE CERTIFICATE
Certificate of Insurance with security features will be issued as evidence of the insurance and must be displayed at the insured’s premises. Owners or Occupiers of commercial properties must therefore insist on the issuance of the certificates.

FOR FURTHER DETAILS CONTACT:
•    The National Insurance Commission: 0302 238300 – 1
•    The Ghana Insurers Association Secretariat: 0302 251092 – 3
•    All Non-Life Insurance and Broking Companies