The National Insurance Commission (NIC) and Ghana Insurers Association will on August 1, begin implementing the compulsory insurance policy on commercial buildings, both completed and those under construction.
This is in line with the requirement under the Insurance Law, 2006, Act 742.
Under the law, “every commercial building shall be insured against hazards of collapse, fire, earthquake, storm and flood as well as the legal liabilities of an owner or occupier of premises, in respect of loss of or damage to property, bodily injury or death suffered by any user of the premises and third parties”.
Mr S.N.K. Davor, Acting Deputy Commissioner of Insurance, said this during a day’s seminar on the Principles and Practices of Insurance in Ghana.
The workshop brought together 50 senior insurance practitioners and High Court Judges.
The participants would be taken through topics including, “Arbitration Clauses in Insurance Contracts”; “Settlement of Insurance Claims by Alternative Dispute Resolution”; and “Policy payments and measurement of Loss.”
Mr Davor appealed to the judiciary to support the implementation of the policy since the basic principles and practices of insurance were rooted in law.
He said one of the major challenges confronting the industry was fraudulent claims although insurance contracts spelt out processes and procedures to follow when paying claims.
“Another problem facing the insurers is in respect of injury and deceased claims under the compulsory third motor insurance,” he said.
According to him they had had numerous occasions where insurance companies had petitioned the Commission in respect of exorbitant awards from the court in respect of the third party motor insurance and pleaded with the judiciary to help reduce such occurrences.
Mr Davor said the National Insurance Commission was in the process of reviewing the insurance law and it would come out with regulations and code of ethics.
“Hopefully, the regulations will provide guidelines for compensation in respect of third party injury or death claims,” he explained.
Mr Justice S. Date-Bah, Chairman, Users Committee of the Commercial Courts, underscored the importance of the Users Committee saying it was intended to operate as a watch dog of the commercial courts.
According to him the Users Committee’s function as an institutional framework for a feedback on the works of the commercial court was an interesting model which deserved study so it could be incorporated into the court system.
Source: GNA