INSURANCE INDUSTRY has been called upon to continue to dialogue and educate their clients on the importance of policies to individuals and to the national economy.
Chairman of Life Council, Mr. Edward Forkuo-Kyei, made the call at a one-day workshop organised by the Ghana Insurers Association (GIA) for industry players drawn across the country in Accra.
He explained that the inability of insurance companies to educate the public on the essence of insurance, the various types that are available, kinds of risks that are inherent and how they are managed has created some misapprehension about the industry.
According to him, what policyholders should understand is because there is a protection that will be paid at the unlikely event of any of these happenings, little portion of the total premium paid, will be used to pay for the pure cover and so far as that pure cover is concerned, if nothing of the event insured happens, you don’t get that money back.
“For instance, somebody may purchase a life insurance policy with both savings and protections. This means that in the course of the policy period, should there be any event requiring payments to be made, say hospitalisation or death of the policyholder or any other that is insured under the policy, a claim will be paid.
…If nothing happens at the end of the policy, a claim will also be paid. This is because the savings component, together with the return on investment would have accumulated to a certain amount that becomes payable at the end of the policy,” he noted.
He said the inability of insurance companies, through their agents, to explain some of these things, has given the industry a bad publicity.
“We are making steps to educate the public through various means as to how some of these things do occur and how they work so that we maintain the public’s confidence in us. Insurance is there to make important contributions to the society in times of need and therefore an industry or company that has set its objectives cannot be said to be cheating,” he stressed.
Chief Executive Officer, Old Mutual Life Assurance Company Ghana Limited, Mr. George Addison, speaking on the topic: “Demystifying Claim Process,” said the programme was geared towards making sure that they do not create gaps between the insurer and the insured.
“Gaps in connection with claims uncertainty, payment, understanding the policy gaps in connection with products designs,” he said.
He described insurance as “a promise to pay.
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