Insurance Is Not For Profit – NIC Boss

COMMISSIONER of the National Insurance Commission (NIC), Dr. Justice Yaw Ofori has cautioned persons who purchase same insurance packages from different organisations using the same property with the intention of making claims from multiple angles in cases of eventuality to desist from such acts.

According to him, persons who engage in such acts risk losing their monies as it also poses an infraction on relevant laws.

“Insurance should not be a business venture. Insurance is not for profit. And this is what we are trying to not encourage”, he said during an interview with journalists.

Dr. Ofori explained that instead of paying claims individually to a client, insurance companies would rather put resources together and pay the worth of a single claim to a client in case of any eventuality.

He however noted that only life insurance packages can be purchased multiple times and from multiple firms with all claims being paid in full to the client.
This, he explained, is due to life being priceless and that no value can be placed on it.

Insurance for Garages
Dr. Ofori also went on to admonish vehicle owners to be mindful of the garages including local fitting shops they send their cars to for servicing.

He said even though motor insurance was compulsory in Ghana, insurance packages on vehicles would not cover vehicles at garages or local fitting shops should anything happen.

He thus urged owners of mechanic shops and garages to endeavour to insure their properties; and also entreated vehicle owners to ensure that garages and fitting shops they patronize were insured to cover their cars should there be any incident.

Insurance Claims Software Dr. Ofori also disclosed that plans are far advanced by the Commission to develop a ‘claim software’, where frequent accident vehicles would be identified to inform the insurance companies on their levels of risk.

“Having a claim software will also be a deterrent to bad driving since those who claim insurance compensations frequently will be noted as high risk.”

He again encouraged individuals and organisations to acquire what he called ‘compulsory insurance’ which include commercial building insurance (for buildings both completed and under construction) as well as fire insurance, saying the NIC will soon issue certificates to that effect.

He expressed the Commission’s readiness to continuously engage stakeholders and undertake public education to sensitize people on the benefits of insurance.

By Nii Adjei Mensahfio

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