MOTOR INSURANCE

Motor insurance in Ghana is compulsory by law (Motor Traffic Act 1958)

Subject to this Act, a person shall not use, or cause or permit any other person to use, a motor vehicle unless there is in force in relation to the user of that motor vehicle by that person or the other person, a policy of insurance or a security in respect of third party risks which complies with this Act.

a. Third Party

This cover gives protection to the user of the vehicle in respect of death, bodily injury or property damage sustained by third parties because of the negligent use of the motor vehicle. Under this policy, premium payment is based on a statutory amount set by the NIC. The standard compensation amount under this policy is usually a maximum of GHC 5,000. A higher limit can be bought as a top up as the standard amount is low and cannot meet the rising cost of reinstatement.

b.Third Party, Fire & Theft

In addition to the above, this type of motor insurance offers cover to insured Vehicle in respect of accidental or malicious damage resulting from fire or theft. Here premium is calculated by applying an industry percentage range of 1.5%-3%on the value of the vehicle. It also covers bodily injuries or death to third parties through the use of the insured vehicle. The standard ¢5,000 limit for third party liability is applicable under this policy

c.Comprehensive

In addition to the covers explained above, this policy indemnifies the insured against the following perils:

• Accidental or malicious damage, collision or overturning, fire, theft, flood etc.
• The policy also covers emergency medical attention and the death or injuries to occupants of the vehicle at the time of the accident.
• Personal accident cover for the occupants of the insured vehicle An industry policy on liability limit to third parties is very narrow. The standard limit is only ¢5,000. We propose an umbrella Third Party Property Damage Limit.

HOMEOWNERS POLICY

This policy is specifically arranged to cover loss or damage to household goods and personal effects of the insured / occupant/ renter. The damage must be as a result of fire and allied perils such as fire, lighting, explosion, Aircraft or falling of Aerial devices, Earthquake, Tornado or Storm, Flood, Impact, Riot, Strike and Civil commotion, Malicious damage, Burst Pipe, etc.

It is also extended to cover Burglary from forcible entry and/or exit from the premises/items insured

TRAVEL INSURANCE POLICY

The Travel insurance provides a worldwide and Schengen protection cover and will pay Staff for Travel outside Ghana for the under mentioned insured events occurring during the period of Insurance up to the limit of indemnity stated.

• Accident, Death and Dismemberment
• Medical, Repatriation, Emergency Expenses
• Accidental Hospital Benefit
• Loss of Luggage and Personal Effects

The policy can be arranged per event basis meaning that the policy is taken when there is the demand to travel or one-time annual basis whereby a single policy is arranged and used whenever the insured desires to do so without arranging for a new cover. At the expiry of the policy, it can be renewed.

INDIVIDUAL LIFE POLICIES

Securing your family’s financial future is the right choice to make. In our quest to assist you in this regard we have designed various value-added life insurance offerings you can choose from. Our products come in two main forms;

• Pure risk polices: these products provide lump sum payment to insureds when the assured risks (death, disability, hospitalisation, critical illness etc) occurs. In case of death the lump sum is paid to named beneficiaries of the insured in. it is however paid to the insured if he survives any of the named risks.
• Investment polices: This type of policies has a relevant financial component. The amount of the benefit for the policyholder is linked to the performance of an underlying financial asset. the insured party’s premium is used by the company to subscribe to specialized funds on the stocks, bonds or balanced funds markets. In most cases however the insured is promised fixed amount at the maturity of the policy. Interestingly there is an option to extend these policies to cover risks such as death, disability and critical illness. In such cases a named beneficiary is required to whom the annuity will be paid.