Dr. Justice Ofori, Commissioner of Insurance has emphasized that the National Insurance Commission (NIC) has a role in protecting policyholders and the insurance industry for development to thrive.
He said to ensure development, there is the need to increase the minimum capital for insurance companies across the country hence the increase of the minimum capital from GH¢15million to GH¢50million effective January 1, 2022.
He reiterated this during a working visit to the Western Region, to familiarize himself with the players in the insurance industry and other key stakeholders including the Motor Traffic and Transport Department (MTTD) of the Ghana Police Service.
Also, the visit was to update the industry on some of the activities NIC is embarking on to help increase insurance penetration in the country as well as get to know some of the challenges.
Dr. Ofori noted that there has been increase in the regional presence of the NIC. “The NIC reactivated the Western Region and has added three additional regional offices which includes the Eastern, Bono and Central Regions,” he said.
Currently, he said with these additions the NIC has presence in seven regions and disclosed the commission’s plans of opening two additional branches in the Upper West and Upper East this year.
The Commissioner was excited about the changes the Motor Insurance Database (MID) has made to help bring some sanity to the operation of the motor insurance business which some bad nuts in society took advantage of in the past to dupe unsuspecting motorists and vehicle owners thus endangering lives and property.
He explained that the MID is to help insurers have a fair playing ground in terms of premium charging. The difference has to be in service quality but not on premium. This, he said, will make insurance companies more liquid to meet their claims obligation in a timely manner.
He pointed out that the Commission has been organizing education for the industry professionals with the objective of helping build capacity for the industry through the facilitating mandate of the Ghana Insurance College to provide this education.
“The Commission in its vision to train 10,000 people who are High school and Tertiary School leavers as insurance agents is still on course. “The Commission has organized two sessions in the Western Region and is still ready to train more at no cost to the trainees,” Dr. Ofori added.
This, he explained, is to create jobs for the youth and help people to acquire knowledge in insurance and get the understanding which will intend help insurance growth and penetration.
In a related development, the Commissioner had a meeting with the Western Regional Police Commander, DCOP Felix Fosu Agyemang.
Dr. Ofori pledged the Commission’s continuous support for the Ghana Police Service as the two institutions continue to work together to enforce the motor third party insurance. “The Commission helped trained, some of the MTTD police officers in insurance countrywide to help with enforcement activities, especially on motor and fire insurances,” he said.
He said 500 Gota phones have recently been deployed to the Police Administration to help with the enforcement of the motor third-party insurance. “All these efforts are geared towards increasing insurance penetration and also engender the confidence and trust in the insurance industry,” he added.
DCOP Agyemang, gave the assurance that the Police is there to make sure the law is enforced. “We are always ready to help and collaborate with the NIC on its activities and mandate.”