23.06.2004 Business & Finance

Adhere to lawful Insurance Claims - Lawyer

23.06.2004 LISTEN

Accra, June 23, GNA - Mr. Kofi Peasah-Boadu, a legal practitioner, on Tuesday said insurance companies have no legal justification to repudiate a motor insurance claim that is captured by law.

He said it was unfortunate that most insurers in attempt to deny the payment of claims referred to jargons, like breach of conditions in the policy, particularly the state of motor vehicles, weight of excess goods carried and carrying of excess passengers.

"These impediments are not justified and contrary to the Section 3 and 9 of the Motor Vehicles (Third Party Insurance) Act 1958", he said. Mr. Peasah-Boadu was speaking at a stakeholders' workshop organised by the National Insurance Commission (NIC) in Accra on the theme: " Motor Insurance Claim Process; Problems Encountered and Expectation from the Stakeholder".

The workshop is to address problems in the processing of insurance claims and fashion out solutions to the problems.

He said in circumstances where claimants were asked to produce police reports, the problem of claims became more complicated since it took the police years to submit final reports, which the insurance companies insisted upon before settling claims.

Mrs. Doris Nkani, an insurer, said the insurance companies had always desired to respond to claims as promptly as they deserved but they could not do so without following the due process. She said the insurance policy was a contract and that it was important for the parties involved to respect the terms. Mr. Kojo Adom Moses, Chairman, Ghana Road Transport Coordinating Council (GRTCC) asked insurers to avoid processes that made claims extremely cumbersome.

He said the National Insurance Commission (NIC) should take steps to review the current Motor Insurance Claim process to reflect present conditions.

Mr Moses said insurance companies should take steps to redesign their forms and procedures and decentralise payment of claims.

"If the insurance agents can be trusted to sell motor insurance products on behalf of insurers, then they should equally be trusted to assist the insured in matters of insurance claims," he added. 23 June 04

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