Insurance World

Ghana: Govt to make workmen’s compensation insurance compulsory


All employers in Ghana will have to ensure that their employees are covered by workmen’s compensation insurance with effect from next year, when the new Insurance Act is expected to take effect.

This move is being made to ensure that the Workmen’s Compensation Act of 1987 is effective and serves workers who suffer accidents at the workplace, reported Ghanaweb.

Workmen’s compensation per se has been compulsory since 1987 but the means by which compensation is to be given to workers have not been spelt out. This has given employers leeway to evade their legal obligations – in many cases, employers are willing to challenge legally their obligations according to the specific circumstances of an accident; and in most situations, employees are unwilling or unable to go up against their employers in court because of the heavy legal cost. In other cases, employers have been known to simply plead insufficient resources to meet their obligations.

By making workmen’s compensation insurance compulsory, workers will be assured of adequate compensation in accordance with the spirit of the 1987 law since insurance would guarantee workers of the financing of the requisite compensation. 

This impending major change to the regulatory framework for Ghana’s insurance industry was revealed last Wednesday by the Deputy Commissioner of Insurance, Mr Michael Kofi Andoh, at an insurance seminar.

Currently, compulsory motor insurance accounts for over 40% of total general insurance premiums. The insurance industry is hoping that compulsory workmen’s compensation insurance will similarly expand insurance business.

New insurance law

Mr Andoh also stated that the new insurance Bill could be presented to Parliament before the end of the year.

“We are still at the ministry level, it has to go to Cabinet for approval and then from there it has to go to Parliament. We are hoping to deliver it to Parliament before the year ends. We are hoping that it will be passed before the end of next year, ” he added.

Source Middle East Review

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