The Chartered Insurance Institute of Ghana (CIIG) has identified some loopholes in the new Motor Insurance database and has urged the National Insurance Commission (NIC) to fine-tune same to yield the desired result.
Even though the National Insurance Commission (NIC) rolled out the database recently to check fraud and undercutting, according to the President of the Institute, most players in the industry are not happy because of some bottlenecks the new directive presents.
“Our members are not happy about ‘No-Claim Discounts’ that cannot be transferred if the client decides to move to another insurer and it infringes on the fundamental rights of our clients and I appeal to the NIC to resolve this and not take this lightly.” President of the CIIG, Rev. Asante Marfo-Ahenkora said at this year’s President’s Cocktail organized by the Institute.
The CIIG has also revealed that delayed approvals have reached the industry’s attention blaming it on some insurance professionals who are not tech-savvy.
There also complaints about high premiums on Comprehensive Insurance Covers for motor insurance as a result of no discounts. The CIIG fears the issue, if not resolved, could promote the purchase of only third party motor insurance which could go a long way to affect the bottom-line of motor insurance.
The institute has therefore called for a meeting between various non-life insurance companies to consider a review of the directive.
Meanwhile, the CIIG has commended the NIC for its resolve to implement the database and has implored all industry professionals to work to support the endeavour.
The NIC has however expressed its commitment to improving the sector’s marketing contribution.
The Insurance Commissioner, Justice Ofori said, “In addition to the motor insurance database, the passage of the insurance bill into law and recapitalizing our market by June 2021 are crucial projects the commission will commit its energies to and this is because the outcomes of these projects will set the platform for growth and profitability in our industry.”