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Business News of Thursday, 30 November 2006

Source: GNA

Insurance Bill passed


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Accra, Nov. 30, GNA - Parliament on Thursday passed the Insurance Bill which is to revise the law relating to insurance in order to make comprehensive provisions for the regulation of the industry. The Report of the Finance Committee of Parliament, presented to Parliament last week, said the bill would ensure the effective administration, supervision, regulation, monitoring and control of the business of insurance to protect the insurance policy holder and the insurance industry.

Under the new Bill, Health Insurance would be provided for under the National Health Insurance Act 2003 (Act 650). Presenting the Report of the Committee last week, Nii Daku Mante told Parliament that the Bill, said the insurance industry was currently being regulated by the Insurance Law, 1989 (PNDCL 227), the Ghana Reinsurance Organisation Law 1984 (PNDCL 78), as well as the Motor Vehicle (Third Party Insurance) Act, 1958 (No. 42) and the Workmen's Compensation Law, 1987 (PNDCL 187).

He said the committee observed that the proposed Act would empower the National Insurance Commission (NIC) to conduct on-site inspection at the premises of insurance companies.

"This will enable the Commission to effectively carry out its policing and watchdog role," Nii Daku Mante added.

The committee noted that with the passage of the Bill, it would be mandatory for insurers to separate life insurance business from other businesses, adding; "this measure would help forestall the situation where life funds are used for other businesses at the detriment of contributors."

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