Compulsory insurance cover for commercial buildings is imperative

The Executive Secretary of Ghana Insurers Association (GIA), has disclosed that owners of commercial buildings and those under construction were obliged to take compulsory insurance cover against natural hazards such as fire, earthquake and flood. Mr. Gabriel Glover made this call last week during the closing ceremony of a two-day information session organized the GIA for the media in Accra. Journalists were taken through the basic law and importance of insurance in the country from all categories and most relevantly the media role in promoting insurance. “Insurance Act 2006 which established the Fire Service Maintenance Fund required owners of such buildings and those under construction to contribute a percentage of their gross premium received by each insurer into the fund” he added. The Act stipulates that "every commercial building shall be insured with an insurer against the hazards of collapse, fire, earthquake, storm and flood and an insurance policy issued for it".
Mr. Glover reiterated that the fund would be used to equip state institutions assigned with fire fighting functions and other organizations determined for the purpose of fighting fires. He said the law preferred drastic actions against insurers who failed to comply and these included actions such as the revocation of the insurance licenses of recalcitrant companies among others. Participated Journalists were awarded certificates.

Source: Ghanaianreactoronline (GRO)