The Insurance Bill, 2020 (“Insurance Bill” or “the Bill”) has been laid in Parliament, and is currently being reviewed by the Finance Committee of Parliament. The Insurance Bill seeks to replace the Insurance Act, 2006 (“Act 724” or “the Act”) if passed into law. It is expected that the Bill will be passed by the end of 2020 and will take effect immediately it is passed.
The Insurance Bill seeks to deepen insurance penetration through the introduction of additional compulsory insurances, specifically:
- public liability insurance,
- professional indemnity insurance,
- workmen’s compensation and
- group life.
It is worth noting the compulsory insurances above will be in addition to the following insurances that are already compulsory fire and public liability for motor insurance, private commercial buildings and marine cargo insurance.
With the introduction of sections on inclusive insurance (microinsurance), index insurance, mediation of complaints, innovative insurance and insurance database, the Bill seeks to align Ghana’s insurance laws with international standards and best practices. The expectation of the insurance industry and its stakeholders is that the Insurance Bill 2020 will be passed by the end of 2020.