National Insurance Commission (NIC) is set to clamp down on private commercial buildings which do not have the compulsory fire insurance policy.

According to the NIC, it is required of all owners of such buildings, both completed and under construction, to obtain the Compulsory Fire Insurance.

The Commissioner of Insurance, Justice Yaw Ofori said, “We have the backing of the law and we’re working with it.

Most at times when they go round enforcing it they go with the Police and the Fire Service so normally they’ll give you a warning and give you time to go and get it and they come for another inspection making sure that by the time they come in they have it,” he said.

“A lot of people didn’t know that fire insurance for commercial properties is actually compulsory so once they become aware they’ll try to buy it. There are instances where people try to be stubborn but when they see that we have the teeth to bite, they’ll stay sharp.” Mr Ofori added.

Owners of private commercial buildings are required to insure them against fire and allied perils, as per Sections 183 and 184 of the Insurance Act 2006, (Act 724).

According to a release from the NIC, the compulsory insurance will cover fire and allied perils like flood, earthquake, the collapse of buildings, storm and as well, legal liabilities of an owner or occupier of premises in respect of loss of or damage to property, bodily injury or death suffered by all users of the premises and third parties.

A Certificate of Insurance with security features will be issued as evidence of the insurance and must be displayed at the insured’s premises.