Only the NIC can issue a directive on mandatory travel insurance – Analyst
Insurance analyst, Ernest Frimpong says that although travel insurance is a necessity, by law it cannot be made compulsory until the National Insurance Commission (NIC) deems it.
This is on the back of a statement issued by the National Insurance Commission, urging the public to ignore reports of supposedly compulsory ‘Akwaaba insurance’ for all international travelers arriving in Ghana.
Mr. Frimpong further explained that: “Travel insurance is one of the non-life insurances that we have in the market and before any insurance product is sold in the market, it has to be approved by National Insurance Commission. For insurance to be made compulsory, it must be guaranteed by law. The current law we have is the Insurance Law of 2021 (Law 161).
“It has certain compulsory insurance which has been prescribed by law, including automobile insurance, commercial buildings including those under construction and then professional civil liability. So, for travel insurance to be made compulsory, it must be authorized by the regulator which is the National Insurance Commission to order that it be backed by law,” he said.
According to numerous reports, by the end of the first quarter of 2022, all international travelers arriving in Ghana via Kotoka International Airport will be required to take out a compulsory insurance cover known as an insurance policy” Akwaaba”.
Three Ghanaian insurance companies, GLICO Insurance, Enterprise Insurance and State Insurance Company PLC (SIC) have reportedly been contracted to lead the deployment of the police.
However, according to a statement issued by the National Insurance Commission, it has not approved any of these plans, advising the general public to disregard such a directive.
In countries like the United States of America and Cuba, although it is not mandatory, it is strongly recommended that people traveling to these countries have travel insurance to cover medical and other unforeseen expenses in case they would occur.