The National Insurance Commission (NIC), in partnership with the German Agency for International Development (GIZ), has launched a microinsurance campaign geared toward encouraging the public to buy microinsurance policies to help insure their lives against any eventualities.
The nationwide initiative has the GIZ subsidizing the cost of the insurance by paying for COVID-19-related emergencies such as hospitalization or death caused by COVID-19.
Speaking in an interview with Info Radio in Wa during the launch of the campaign, Mr Frederick Boakye-Yiadom, Assistant Manager of the NIC, Upper West Region, said the initiative became necessary due to the losses incurred by Ghanaians as a result of the COVID-19 pandemic.
He explained that though microinsurance had been in existence, it was not intensified hence the need for the campaign to create awareness of it its importance and the need for people to sign onto these policies.
“Even though microinsurance was there it was not been intensified, that should launch the microinsurance campaign again to extend the cover to COVID-related issues like COVID-related death or COVID-related hospitalization.
GIZ is subsidizing the premium, so what happens is that if you were paying GH₵10.00 as your premium, you will still be paying your premium but GIZ is supporting to extend the cover that you were doing”, Mr Boakye-Yiadom explained.
He explained that microinsurance is also a poverty alleviation mechanism since the policyholder could get money to meet some urgent needs when necessary.
The Assistant Manager explained that eight macro insurance companies were currently on the campaign including alliance life, Ayo, SIC Life, and micro insure among others, but expressed hope that more companies would also come on board in subsequent years.
He, therefore, appealed to the people to sign onto the microinsurance policy to help guarantee financial assistance in times of emergency such as death or hospitalization.
He said microinsurance is not only a preserve for lower-income earners, but also good for middle-income people, women and youth groups, churches, and other associations.