Kumasi Court convicts fake motor insurance dealers

Kumasi Court convicts fake motor insurance dealers

About 150 Chief Executive Officers in the insurance industry led by the Commissioner of Insurance, Dr. Justice Yaw Ofori has come together to launch a blood donation exercise.

The exercise, which is expected to be done annually, is to help stock the National Blood Service.

The blood donation followed an appeal by the National Blood Service to the National Insurance Commission (NIC) to help stock the blood bank.

Dr. Ofori said the blood donation by players in the Insurance industry would be done across the country and it is expected to end on October 14, 2021, under the hashtag “Donate blood, save a life; if you, do it for someone, you do it for yourself”.

He said without human lives, there would be no insurance, as businesses depended on lives for their insurance business.

“The blood bank approached us that they needed some blood because they were running out of stock so we decided to lead a campaign for the insurance industry to help stock it.

“What I am doing today will benefit someone, but if I should also need blood someday, someone’s own will also help me and that is why everyone must get involved,” he stated.

Dr. Ofori said the exercise would be replicated in all branches of the NIC across the country.

People who donated blood at the launch were staff of the NIC, Chartered Insurance Institute of Ghana, Ghana Insurers Association, Insurers Brokers of Ghana, Ghana Insurance College, among others

Dr. Dillys John Teye, Director of the Southern Zonal Area of the National Blood Services, commended the National Insurance Commission and urged people to emulate the gesture and donate blood voluntarily, saying, “there is always blood shortages at the blood bank.”

The National Insurance Commission imposed supervisory restrictions on RegencyNem Insurance Ltd. since 19th April, 2021 following some regulatory breaches which the firm has not been able to resolve. In line with the Commission’s mandate under the Insurance Act 2021 (Act 1061) to protect the interest of past, current and prospective customers of the company, it is hereby announced for the information of the general public that Ms. Dzidzorli Adzo Asafo has been appointed as the Statutory Manager of RegencyNem Insurance Ltd with effect from 12th August 2021, in accordance with Section 99 of the Insurance Act 2021(Act 1061).

In accordance with the Insurance Act 2021 (Act 1061) the Statutory Manager shall exercise the powers of the shareholders and directors, and shall have control of and manage the business, assets, liabilities and affairs of RegencyNem Insurance Ltd.

Issued by the Commissioner of Insurance
12th August, 2021

The National Insurance Commission imposed supervisory restrictions on Heritage Energy Insurance Company Ltd. since July 2019, following some regulatory breaches which the firm has not been able to resolve. In line with the Commission’s mandate under the Insurance Act 2021 (Act 1061) to protect the interest of past, current and prospective customers of the company, it is hereby announced for the information of the general public that Mr. Richard Okyere has been appointed as the Statutory Manager of Heritage Energy Insurance Company Ltd with effect from 22nd July 2021, in accordance with Section 99 of the Insurance Act 2021(Act 1061).

In accordance with the Insurance Act 2021 (Act 1061) the Statutory Manager shall exercise the powers of the shareholders and directors, and shall have control of and manage the business, assets, liabilities and affairs of Heritage Energy Insurance Company Ltd.

Issued by the Commissioner of Insurance
22nd July 2021

The National Insurance Commission (NIC) has taken note of a press statement on the above subject, which has been receiving attention from some relevant stakeholders.

The Commission has taken the issues raised onboard and will address them appropriately. We will also continue with ongoing stakeholder engagements towards finding harmonious ground for the smooth implementation of the Insurance Law.

The NIC, however, wishes to clarify that the current renewed effort is only aimed at enforcing an existing Law that dates back to the Insurance Law of 1989, PNDC Law 227. This Law made it mandatory for all goods being imported into Ghana to be insured in Ghana by insurance companies licensed to operate in Ghana. The relevant sections of the applicable laws are chronicled as follows:

Insurance Law 1989 (PNDC Law 227)
Section 63 (1) ‘Except in the case of personal effects every insurance effected in respect of any goods imported into Ghana shall be placed with an insurer registered under this Law’

The Insurance Act 2006 (Act 724)
Section 37 (1) ‘Unless authorized by the Commission, a person shall not enter into a contract of insurance with an offshore insurer in respect of:
(a) Property situate in the country
(b) Liabilities arising in the country, or
(c) Goods, other than personal effects, being imported into the country’.

Insurance Act 2021, Act 1061
Section 222 (1) ‘A person who imports goods, other than personal effects, into the country shall insure the goods with an insurer licensed under this Act’.
For effective administration, the new Law requires that the NIC designs Regulations as guide for implementation. This process has since commenced and will involve various stakeholder engagements.

We assure all stakeholders that their interests will be served as we traverse the path to grow the economy and to enable us be in the position to provide adequate buffers against all risks emanating from all manner of business transactions in real time.

Thank you.

Issued by the Public Relations Unit

Re: Reconsider Implementation of the National Insurance Act

The Commissioner of Insurance, Dr. Justice Ofori, says the Ghana Insurance College (GIC), which is the nation’s premier insurance training institution, has proven through its dedication to insurance training and education, that it holds unique qualities for the pursuit of development.

Speaking at the sod-cutting ceremony for the commencement of work on the ultra-modern campus of the GIC on May 28, 2021 at Adamrobe, a suburb of Aburi in the Akwapim South Municipality of the Eastern Region, Dr. Ofori said “The commencement of the construction of the ultra-modern campus of the GIC campus is a cherished dream of the College and today’s sod-cutting ceremony brings that

dream one step closer to being fulfilled. The real work starts today and we have to even work harder to achieve the dream”.

The Commissioner expressed delight in the fact that “with the initiation of local chartership by the College and the commencement of other initiatives, the time is right for the College to deepen its roots in the insurance sector”, he stated.

On his part, the Director of the GIC, Mr. Richard Okyere, said the establishment of its new campus will foster and facilitate the training of insurance practitioners in the country.

According to him, the training edifice when completed, will address the challenges of the College and also serve as a training centre which will be of critical importance to the economy and Ghana’s insurance industry.

“With the absence of a fitting training edifice worthy of an important sector of our economy, it was worrying. Currently, the College occupies a few rooms within the NIC building, which is woefully inadequate for a reputable College such as ours. It is therefore, gratifying to witness this all-important event, the sod-cutting ceremony for the construction of a World-class Professional Insurance Training Centre, envisioned more than a decade ago”

“When completed, the immaculate edifice would be home of excellence for the advancement of best practices and cutting-edge professional Insurance training centre serving Ghana and the West African sub-region.”

“The future of the Insurance College is bright, and this will be the first educational setup to churn out full insurance practitioners that will have a vision of salvaging the economy from its woes when it comes to knowledge acquisition in the area of insurance,” he expressed.

The Municipal Chief Executive for Akwapim South Municipality, Mr. Frank Aidoo, in his remarks lauded the establishment of the new training edifice as a contribution to the development of insurance education and ensuring professionalism in the insurance space.

GIC was established in 2006 by key stakeholders of the insurance industry i.e. the NIC, the Ghana Insurers Association (GIA), the Chartered Insurers Association of Ghana (CIIG), and the Insurance Brokers Association of Ghana (IBAG) with the vision to establish a centre of excellence for the advancement of best practice and cutting-edge professional competence within the insurance industry in Ghana and the West African sub-Region.

It has so far churned out over 350 Chartered Insurers since its establishment and many of these professionals hold principal positions within the insurance industry and other sectors of the economy.

The National Insurance Commission (NIC) has presented 500 GoTa phones to the Motor Traffic & Transport Department (MTTD) of the Ghana Police Service for enforcement activities. These security devices are meant to detect vehicles with fake motor insurance policies plying our roads.

Presenting the items to the Police at an official ceremony at the Police Headquarters on Thursday, March 11, 2021, the Commissioner of Insurance, Dr. Justice Ofori, noted that the use of the devices “would further reduce the issuance and use of fake motor stickers to the barest minimum”.

Dr. Ofori remarked that “through the assistance of the Police, the Commission has in the past, arrested and sometimes prosecuted persons who have been found dealing in the issuance of fake motor stickers”.

He stated further that, “The enforcement activities of the Police through the use of the GoTa phones would affirm the Commission’s obligation to protect the interest of the policyholder and by extension, the average person on the street”.

Receiving the devices on behalf of the Inspector-General of Police (IGP), Mr. James Oppong Boanuh, the Director-General of the MTTD, COP Frederick Adu-Anim expressed appreciation to the NIC for its support over the years.

“Indeed the support we have received from the (NIC) in the past has not only been immense but also phenomenal. Mention can be made of the Commission’s nationwide Training of Trainers (ToT) programme to build capacity on the MID for some 400 personnel of the MTTD in 2020,” he remarked.

“It is instructive to note that even before the presentation of these devices, the MTTD personnel had started making use of the USSD short code *920*57# which provides time checks on the insurance validity on vehicles”, he stated.

The NIC in January 2020, implemented an electronic motor insurance database software, known as the Motor Insurance Database (MID).

It is a central database repository of all motor vehicle insurance policies issued by insurance companies in Ghana.

With the MID, one can easily verify the insurance status of any vehicle and confirm the authenticity of the insurance policy purchased through a USSD code.

The GoTa phones to be used by the Police have additional security features for enforcement and investigative purposes, and are the preserve of only the Police.

Since its implementation, the MID portal has issued insurance policies to an impressive 1.4million vehicles.

The business of fake motor insurance has greatly reduced as the initial objective of curbing the menace of vehicles with fake insurance stickers plying our roads, endangering lives and property has been achieved, to a large extent.

The National Insurance Commission (NIC) has commenced training of some Fire Service Officer Cadets on the Basic Principles of Insurance, Fire Insurance and Risk Management.

The training which was factored into the course structure for Fire Service Trainees took place at the Fire Academy and Training School (FATS) in Accra.

The training forms part of the Commission’s structured campaign to create insurance awareness and is an on-going campaign across all other Security Agencies and allied bodies.

Speaking at the opening of the training in Accra, the Commissioner of Insurance, Dr. Justice Yaw Ofori noted that:

“The commencement of this training is a continuation of series of insurance training programmes outlined and targeted at not only the Security Agencies but also other allied agencies. This has the objective of providing insurance protection for all lives and properties. I am delighted about the prospects of this training as it coincides with the development of a database on Compulsory Commercial Fire Insurance by the NIC. This training is also expected to equip you in basic principles of insurance with focus on areas such as Fire Insurance and Risk Management”.

He admonished the participants to take the training seriously as “when personnel of the Fire Service are well educated on insurance, they can also encourage others to appreciate the need for insurance as a risk management tool’.

Dr. Ofori pledged continuous collaboration with the Ghana National Fire Service in order to provide more sensitization on the need to protect lives and properties.

On his part, the Director of the Ghana Insurance College, Mr Richard Okyere disclosed that the College which is the main training arm of the Insurance Industry has so far trained about 5,000 out of a targeted 10,000 since the NIC started funding the training of the youth as Insurance Agents in July 2019. This move, Mr Okyere said, has created employment in the insurance industry for many young people.

In his welcome remarks, the Commandant of the Fire Academy and Training School, ACFO Gilbert Klutse advised the Officer Cadets Trainees most of whom are already in the Service to take advantage of the training in order to serve as worthy Ambassadors for the insurance protection of lives, homes and corporate entities in the course of their career.

In his commendation to the insurance industry, the Commandant disclosed that the Officer Cadets who are prospective Senior Officers of an institution [GNFS] mandated by law to provide fire protection, rescue and evacuation services for the nation must find it imperative to have a working knowledge of the relevant aspects of insurance.

“Whereas, the GNFS is committed to sensitizing the citizenry and protecting homes, businesses, as well as other forms of properties against the ravages of fire and other disasters, the insurance industry which is regulated by the National Insurance Commission (NIC) provides the needed shock absorbers to alleviate the economic impacts of these incidents on victims if they do occur’, he acknowledged.

ACFO Klutse indicated that both the GNFS and & the NIC have been in partnership on different fronts when disaster strikes.

“Indeed, the insurance industry most of the time depends on our fire reports to pay claims to victims. And I strongly believe some of you [Officer Cadets] have worked on such reports, one way or the other in your career”, he reminded the in-service Officer Cadets.

ACFO Klutse extended a special commendation to the Commissioner of Insurance, Dr. Justice Yaw Ofori for his passionate interest and presence at the launch of the training owing to the importance the NIC attaches to fire safety and insurance.

The NIC is the supervisory and regulatory body of all insurance entities in Ghana and has for some time now championed the training of key categories of personnel as part of the Commission’s mandate of making everyone aware of the needs and benefits of insurance through its instituted Insurance Education Fund.

A Kumasi Circuit court has convicted two insurance fraudsters for selling fake insurance stickers to unsuspecting members of the general public.

The conviction was occasioned by series of investigations conducted by the Police after they were picked up some time early this year by a joint task force of the Police and the National Insurance Commission (NIC).

The convicts, Mavis Nyarko and Baafi Kwasi Appiah who were both Kumasi-based insurance agents were, at the end of the trial convicted to pay a fine of GH¢6,000 each or in default serve a two-year jail term.

In addition to their conviction, the NIC will have the two convicts blacklisted from transacting any form of insurance business.

There are currently other suspects facing trial in various courts in Kumasi and other parts of the country for similar offences with the view to flushing out these miscreants from the system.

Caution to Members of the Insuring Public

Commenting on the conviction, the Commissioner of Insurance, Dr. Justice Ofori admonished members of the public to “in their own interest and in the interest of innocent third parties, expect to receive SMS alerts immediately after purchasing motor insurance from only Insurance Companies in good standing as published in the media and the NIC website www.nicgh.org in November 2020.

It is instructive to note that the NIC had earlier caused the arrest of some perpetrators of this crime and the culprits are still under investigations.

The Motor Insurance Database (MID)

In spite of the introduction of the Motor Insurance Database (MID) with electronic stickers from the NIC which replaced the old system of issuing manual motor insurance stickers upon renewal or purchase of new motor insurance policies, the NIC said certain unscrupulous persons have still not relented in their fictitious ways of perpetrating this crime to the detriment of unsuspecting members of the general public.

The Commissioner lamented that the reality only dawns on these motorists / patrons when involved in accidents and innocent third party victims of such accidents suffer lack of compensation.

Huge Loss to the State

It is estimated that the insurance sector lost at least GH¢325 million to fraudsters and fake insurance operatives in 2018 alone.

This figure is expected to keep rising as the years go by, hence the introduction of the MID to nip this phenomenon in the bud.