Insurance Analyst, Ernest Frimpong says even though travel insurance a necessity, by law, it cannot be made compulsory until the National Insurance Commission (NIC) deems it so.
This is on the back of a statement issued by the National Insurance Commission, urging the public to disregard reports of a supposed mandatory ‘Akwaaba Insurance’ for all international travellers arriving in Ghana.
Mr. Frimpong further explained that: “Travel insurance is one of the non-life insurances that we have on the market and before an insurance product is sold on the market, it has to be approved by the National Insurance Commission. For any insurance to be made compulsory, it has to be backed by law. The current law that we have is the Insurance Act 2021 (Act 161).
“It has certain compulsory insurance that have been prescribed by the act including motor insurance, commercial buildings including those under construction and then the professional indemnity. So, for travel insurance to be made compulsory, it has to be allowed by the regulator which is the National insurance Commission to direct that it is backed by law”, he said.
There have been widespread reports that by the end of the first quarter of 2022, all international travellers arriving in Ghana through the Kotoka International Airport will be obliged to roll on to a compulsory insurance cover known as the ‘Akwaaba’ insurance policy.
Three Ghanaian insurance companies, GLICO Insurance, Enterprise Insurance, and State Insurance Company PLC (SIC) are said to have been contracted to spearhead the rollout of the policy.
However, according to a statement issued by the National Insurance Commission, it has not approved any such plans, advising the general public to disregard such a directive.
In countries like the United States of America and Cuba, though not mandatory, it is highly recommended for persons travelling to such countries to have travel insurance to cover medical costs and other unforeseen happenings in case they arise.