By Kofi Ahovi
The National Insurance Commission (NIC) will soon start enforcing the penalty for commercial building owners who fail to insure their property against fire including third party liabilities, Business week has gathered.
Currently the commission is engaged in advertisements and drama shows on TV to sensitize the public on the need for a fire insurance cover for their buildings.
According to the Public Relations Officer of NIC, Kojo Ghunney, the commission is currently “only advising the public to extend fire insurance cover to third party,” but added they will soon ensure strict adherence to the law.
Unlike motor insurance where vehicle owners are arrested and arraigned before court for non compliance, fire insurance for buildings is not strictly enforced mainly because the commission is under staffed and challenged with inadequate logistics.
The Insurance Act, Act 724 makes it mandatory for commercial building owners to insure their property to cover a third party.
The Act states that owners of commercial buildings are to insure their property against collapse, fire, earthquake, storm and flood and further requires the owners to extend the insurance to cover a third party who may suffer body injuries, lose life or damage to his/her property.
The Act defines commercial building to be a place where people visit to acquire education, medical services or transact any other form of business.
Private buildings on the other hand are not compelled by the Act to extend fire insurance of their buildings to cover a third party.
Coincidentally, the Ministry of Foreign Affairs was engulfed by an inferno last week. An incident which graphically illustrates the need for fire insurance cover for public buildings.
The National Insurance Commission (NIC) will soon start enforcing the penalty for commercial building owners who fail to insure their property against fire including third party liabilities, Business week has gathered.
Currently the commission is engaged in advertisements and drama shows on TV to sensitize the public on the need for a fire insurance cover for their buildings.
According to the Public Relations Officer of NIC, Kojo Ghunney, the commission is currently “only advising the public to extend fire insurance cover to third party,” but added they will soon ensure strict adherence to the law.
Unlike motor insurance where vehicle owners are arrested and arraigned before court for non compliance, fire insurance for buildings is not strictly enforced mainly because the commission is under staffed and challenged with inadequate logistics.
The Insurance Act, Act 724 makes it mandatory for commercial building owners to insure their property to cover a third party.
The Act states that owners of commercial buildings are to insure their property against collapse, fire, earthquake, storm and flood and further requires the owners to extend the insurance to cover a third party who may suffer body injuries, lose life or damage to his/her property.
The Act defines commercial building to be a place where people visit to acquire education, medical services or transact any other form of business.
Private buildings on the other hand are not compelled by the Act to extend fire insurance of their buildings to cover a third party.
Coincidentally, the Ministry of Foreign Affairs was engulfed by an inferno last week. An incident which graphically illustrates the need for fire insurance cover for public buildings.
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