President John Mahama has directed all ministries, agencies and departments to with immediate effect purchase or renew their insurance cover strictly from insurance companies that are wholly or partly owned by the state.

The 13 December directive is contained in a letter signed by the  Executive Secretary to the president, Dr. Raymond Atuguba, Joy Business has learnt.

The notice added that  any MDA which finds it necessary to insure with an insurance company that is not wholly or privately state owned must obtain  the requisite  permission before doing so.

Meanwhile Joy Business has gathered the  directive has not gone down well  with  most of the private insurance companies.

According to  them the directive is discrimminatory and is against government's own policy of encouraging the private sector as the engine of growth.

Sources say the insurance companies are planning to collectively  register their protest at the directive.