Insurance claims slowing down benefits payments -
Accra, May 21, Ghanadot/GNA – The
growing incidence of fraudulent insurance claims is slowing
down the period within which benefits are paid, Mr C.C.
Bruce Jnr., Executive Director of Enterprise Life Assurance
Company (ELAC) said on Thursday.
Speaking at a public forum to present the 2008 financial
performance of the company, Mr. Bruce Jnr. said ELAC had
responded to the worrying trend by instituting both internal
and external investigation systems to stem the practice.
He said despite the challenge, the company had stuck to its
benefit payment standard of settling claims in 48 hours and
had been able to settle more than 50 per cent of Funeral
Finance Policy claims within two days.
The company in 2008 paid GH¢2.8 million in benefits to
policy holders, more than a two-fold increase from the
previous year value of GH¢1.3 million.
It has also transferred GH¢4.75 million into a provision to
enable it pay to future claims.
Commenting on the general outlook of the Life Assurance
Industry, Mr. Bruce Jnr. said the separation
of life from non-life had strengthened companies and
also provided more focus on life business.
Besides it has engendered more competition as well
as new schemes and products.
However, he said, market penetration was still low and there
was the need to focus on education to enhance public
understanding of the need of holding life policies.
While commending agents, brokers and Bancassurance
to the continuous growth of the company, Mr. Bruce
Jnr., however, stressed the need to step up premium
collection, a challenge at both company and industry levels.
He said with an average collection rate of 75 percent, the
company will continue with its efforts and support industry
initiatives to engage various payment sources to improve
The company’s gross premium income went up by 52 percent to
GH¢15.4 million, giving it the number two position in the
Life Assurance Industry.
Mr. Bruce Jnr. said the company would enhance customer
service to improve service deliver to clients.
There are also plans to roll out new branches, deepen the
use of technology to improve efficiency and reduce cost.
Mr. Ken Ofori-Atta, Chairman of ELAC called for education
and innovation to maintain the growth of the industry in the
He said there was the need to continuously educate the
public about the products and how they work and also
innovation to do things differently.