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Business news for Monday, September 7, 2020
Source: www.ghanaweb.com
2020-09-07
Judge Yaw Ofori, Commissioner of Insurance (NIC)
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The National Insurance Commission (NIC) will soon reach the metropolitan and district commercial enclaves of the country to intensify its awareness campaign and the application of mandatory property insurance.
This was revealed by the Insurance Commissioner, Judge Yaw Ofori, in a recent statement.
Mr. Ofori indicated that, although the Insurance Law, Law 724 of 2006, obligated privately owned commercial entities to insure their properties, many have yet to comply.
The law, under Sections 183 and 184, makes it mandatory for all commercial properties, whether under construction or completed, to have valid insurance certificates.
Mandatory property insurance is to provide financial protection against legal liability arising from accidents that cause property damage, bodily injury, or death to the public. Occupants (tenants) of commercial buildings can also benefit from purchasing fire insurance in their businesses because they can be held accountable to the public.
The Insurance Commissioner cited the June 3, 2015 disaster as a typical example of a commercial property that should provide compensation to accident victims.
The imminent enforcement exercise, he insinuated, is to ensure that articles 183 and 184 of the Insurance Law are complied with for the benefit of owners, occupants and the general public.
He lamented the fact that many people spend fortunes on starting businesses, but have a shuffling attitude towards paying a small premium to protect these investments. You don’t have to be a homeowner before legally insuring a property, but an occupant also has the same responsibilities, he stressed.
“People who visit your property for commercial transactions are considered guests as such and you are responsible for their well-being,” he warned.
He took the opportunity to clear up any ambiguity regarding what property insurance covers.
According to the Commissioner, property insurance is the same as fire insurance, as the term is used interchangeably in certain western jurisdictions, but conventionally acceptable anywhere in the world.
He also indicated that not only is the danger covered, the fire, but other dangers such as earthquakes, floods, thunderstorms and theft are covered by fire insurance.
Judge Ofori affirmed that, as a country, earthquakes occur and the Richter scale registers between 2 and 3 monthly tremors without people noticing.
He said that while the law was not specific about churches and other religious places of worship, it is important that they insure their property because they could be liable for property damage, injury or death to the public arising from their negligence.
The Mandatory Commercial Property Insurance Task Force is comprised of NIC officials and other relevant stakeholders such as the Ghana Police Service and the Ghana National Fire Service.
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