NIC Records Sharp Drop in Fake Insurance Sticker Issuance in Western Region for Q1 2025

• The Western Regional NIC has resolved 15 out of 21 insurance complaints in the first quarter of 2025, with six cases still pending
• Delays in claim payments are often due to policyholders not submitting the required documents, prompting the NIC to advise on proper documentation
• The NIC plans to intensify education and monitoring to improve compliance, while applauding agents for reducing fake insurance sticker incidents

The Western Regional National Insurance Commission (NIC) has reported that it resolved 15 out of 21 complaints lodged by insurance policyholders in the first quarter of 2025, with 6 cases still pending.

According to the NIC, the complaints filed included refusal by insurance companies to pay claims, delays in claim payments, and deductions after policy cancellations without the consent of the policyholders.

The Acting Regional Manager, Nada Ashong, disclosed this in an exclusive interview with YEN.com.gh on the performance of the insurance industry in the Western Region.

According to her, the delays in claim payment are as a result of policyholders' inability to present the required documentation to initiate the due process.

“Sometimes, some policyholders do not bring the necessary documents for the insurance companies to initiate processes so they can pay their claims. That is the reason. So when we, the NIC, come in, we advise the complainant to supply the documentation,” she said.

She further disclosed that some clients display a lack of knowledge of the policies they signed.

Western Region NIC embarks on sensitisation drive

This situation, she said, highlights the need for the National Insurance Commission to intensify education on insurance, which is one of its key mandates as a regulator.

The public sensitisation exercise, she noted, has already commenced with some institutions ready to welcome the NIC to engage with their employees.

Ashong further stated that the NIC will also intensify monitoring and supervision this year to ensure industry players comply with insurance business regulations, reminding them of the consequences of non-compliance.

She further said that in the past three years the practice of issuing fake insurance stickers to customers has drastically dropped, attributing this to the introduction of the Motor Insurance Identification Data (MID) in January 2020.

“Compliance has been very high these past few years since the NIC introduced MID. This has ensured that all data on the insured is entered into the national system by the insurance companies for easy tracking. Failure to do so comes with sanctions, and this is mandatory,” Ashong added.

Though compliance has improved, the NIC Western Regional boss said her outfit will intensify education by engaging prospective customers, policyholders, insurance agents, and brokers.

Ms Ashong applauded insurance agents, the intermediaries between insurer and insured, for refraining from issuing fake insurance stickers, as non-compliance could lead to blacklisting by the regulator.

Western Region NIC blacklists fake agents

So far in the Western Region, three agents have been blacklisted for issuing fake stickers after undergoing disciplinary actions.

“We have blacklisted about three agents for going contrary to our dos and don’ts by selling fake stickers to clients. Some have received just cautions. Overall, they are comporting themselves very well, and I commend them for that,” Ashong noted.

Ashong encouraged individuals to report any insurance-related challenges to the National Insurance Commission for swift redress, stressing that filing complaints is free of charge.

Insurance companies provide insurance for dogs, cats

YEN.com.gh reported that insurance companies in Ghana had included domestic dogs in their premium covers.

Owners who lose their pets to death or theft could enjoy premium cover of up to GH¢5,000.

Dr Justice Ofori, head of the NIC, stated that the Commission was dedicated to creating a supportive regulatory framework that promotes the sustainability and development of the organisations it oversees.

Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.

Source: YEN.com.gh