Business News of Wednesday, 23 October 2024

Source: www.ghanaweb.com

Justice Amadu Tanko urges NIC to champion confidence-building initiatives in the insurance sector

Justice Amadu Tanko (Middle) with other dignitaries at the workshop Justice Amadu Tanko (Middle) with other dignitaries at the workshop

A Justice of the Supreme Court of the Republic of Ghana and Director of the Judicial Training Institute, His Lordship Justice Imoro O. Amadu Tanko, has called on Members of the Judicial Service to play a vital role in boosting confidence in insurance products, as the insurance penetration rate in Ghana is still under 2%.

He made this statement while commending the insurance industry for initiating public education efforts targeted at high-ranking officials, such as Justices of the Courts.

He emphasised the importance of Justices of the Law in applying the law to factual situations and recognizing their limitations in technical expertise.

Speaking on behalf of the Chief Justice at an Insurance workshop organised for Justices of the High Court by the National Insurance Commission (NIC), he explained that the Insurance Act, 2021 (Act 1061) replaced the Insurance Act, 2006 (Act 724) and introduced key provisions, including the establishment of the NIC as an independent regulatory body.

The new Act requires applicants for insurance licenses to be entities incorporated under the relevant statute and licensed insurers to give written notice of business commencement to the Commission within two weeks.

Justice Amadu Tanko noted the developing insurance jurisprudence in Ghana despite the scarcity of case law and mentioned a prominent case (Asamoah vs SIC Insurance) where the Supreme Court clarified the nature of an insurance contract.

He outlined the benefits of the growing insurance industry, including its resilience to various challenges, exponential growth, job creation, and wealth generation.

The NIC Board Chair, Ms. Abenaa Kessewaa Brown, who welcomed participants, used the opportunity to share some encouraging statistics on insurance coverage, stating that 44.6% of every working Ghanaian has one form of insurance or another.

She thanked the Chief Justice, Her Lordship Justice Gertrude Torkornoo, for accepting to have the workshop organized for the Justices of the Courts.

The Acting Commissioner of Insurance, Michael Kofi Andoh, in a presentation, also detailed the basic principles and the different types regulated by the NIC: life and non-life insurance.

He outlined the primary function of insurance, which is to spread risk among a larger group of people.

He also shared a video documentary on Cargo Insurance and the requirements of the Insurance Act and regulations therein.

Head of Supervision at the NIC, Stella Jonah also took participants through various critical provisions in the Insurance Act, 2021 (Act 1061).

Additionally, the General Secretary of the Ghana National Bureaux of the ECOWAS Brown Insurance Scheme, Richard S. Eshun, presented a paper on how the ECOWAS Brown operates in alignment with the West African sub-Region regarding cross-border movement of persons and goods.

The conversation set the stage for the further exploration of insurance mechanisms and their impact on policyholders.

Questions and answers were provided during an open forum session.

In his concluding remarks, His Lordship Justice Tanko Amadu commended the insurance industry for such an initiative and encouraged the industry to do more.

Key personalities who attended were Mr. Larry Jiagge, a Member of the Insurance Bill Steering Committee that drafted the new Act and also doubles as the Managing Director of Risk Management Advisory Services (RMAS), Mr. Seth Aklasi, President of the Ghana Insurers Association (GIA) and also Managing Director of Donewell Insurance Company Ltd, Mr. Shaibu Ali, President of the Insurance Brokers Association of Ghana (IBAg) and also the Managing Director of KEK Insurance Brokers, Mr. Solomon Lartey, President of the Chartered Insurance Institute of Ghana (CIIG), and Mr. Henry Bukari, Chairman of the Council of Bureaux of the ECOWAS Brown Card Scheme and Managing Director of Phoenix Insurance Ltd.

Others were Representatives of the United Nations Development Programme (UNDP), the German Development (GIZ), Ghana Shippers’ Authority (GSA), Ghana Revenue Authority (GRA), and the Police Motor Traffic and Transport Department (MTTD).

Two Court of Appeal Judges and forty (40) Judges of the High Court participated in the workshop where certificates were issued, and copies of the Insurance Act, 2021 (Act 1061) were presented to aid in the adjudication of insurance-related disputes that may come their way.