Seven arrested in Accra over failure to acquire fire insurance

A National Insurance Commission (NIC) taskforce yesterday undertook an operation targeted at owners and occupants of private commercial properties in Accra who have failed to acquire the compulsory fire insurance certificates.

The about three-hour exercise led to the arrest of seven persons, including the caretakers, managers and occupants of manufacturing and pharmaceutical firms and shops located in uninsured buildings at Darkuman and Odorkor.

Since July 2018, the NIC has consistently cautioned owners and occupants of uninsured properties to acquire fire insurance certificates or risk arrest.

Affected outlets

The affected commercial entities are CCT Fisherman Limited, dealers in fishing nets and accessories; Max Professionals at the Darkuman Junction, the Odorkor-based New Global Pharmaceuticals and Ernest Chemists Limited at Odorkor, both manufacturers of pharmaceutical products, and Sunda International, producers of Kleensoft detergents and building materials.

The rest are Meridian Pre-university Institute, Rikpto Company and Superman Engineering, dealers in auto lubricants at Darkuman.

Unlike previous exercises, representatives of insurance companies were part of the taskforce to offer insurance support to property owners.

Prosecution

The suspects were taken to the Criminal Investigation Department (CID), where their statements were taken, prior to being arraigned to face prosecution.

“Within the next 48 hours if they are able to comply we will drop the cases against them, but if they do not, they will have to go to court,” the Chairman of the taskforce, Mr Joseph Bentor, who led the operation, told the Daily Graphic.

He said the exercise was informed by sections 183 and 184 of the Insurance Act 2006 (Act 724) that required all privately owned commercial buildings to insure against fire, collapse, floods, earthquakes and related perils.

“Compulsory insurance of property is like vehicle insurance; whether you like it or not, you have to do it,” he added.

Observations

Mr Bentor said compliance with the compulsory fire insurance in Accra was currently below 20 per cent, as against 45 per cent in 2016 and 2017.

He added that compliance in the Eastern Region and the three regions of the north was 40 and 47 per cent, respectively.

"This means that when it comes to the renewal of the compulsory fire insurance certificate, owners of commercial properties are reluctant and so we have to do more in Accra," he said.