Mr Irwin Cofie, Deputy Head of Marketing at SIC Insurance PLC, has stated that it is compulsory for employers with 15 or more employees to insure their liability under the Insurance Act, 2021 (Act 1061).

Mr Cofie noted that the Employer Liability Insurance is mandatory under the Insurance Act, as well as the Workmen’s Compensation Act. According to Mr Cofie, the act provides indemnity in respect of an employer’s legal liability to the employees for occupational injury or death in the course of their employment.

“Every employer with employees in excess of 15 must have Employers Liability cover insofar as the employee is in the purview of work and suffers injury or death, they must be appropriately compensated. They can also insure under the Workmen’s Compensation Act, 1987 which indemnifies an employer against legal liability for injuries to employees resulting from accidents occurring in the course of their employment.”
Irwin Cofie

Mr Cofie reiterated that the Workmen’s Compensation Act made it compulsory for employers of labour to set aside funds to compensate any worker who may sustain injury at the workplace whether or not the Employer was to blame.

However, the Deputy Head of Marketing expressed concern that Public Liability Insurance compliance level in the country is not good, as some public entities do not have insurance for their workers, and called on employers to adhere to the Insurance Act.

According to him, advocating for strict compliance with regards to Property Insurance and the patronage of the Workmen’s Compensation Insurance or Employers Liability, was non-negotiable as the cost implications for employers was often severe.

Mr Cofie said the National Insurance Commission, which was the regulator of insurance practice in Ghana in collaboration with the Ghana National Fire service and the Ghana Police Service were mandated as the taskforce to ensure the enforcement of the Act.

“Unfortunately, their work has not been far reaching even though some taskforce had visited a few premises without insurance and caused their closure for non-compliance. But with the coming into force of the new Act, the taskforce would be reconstituted to strictly enforce the law”
Irwin Cofie

Mr Cofie explained that the definition of a worker under the act had been expanded to include any person who receives salary or wages except an outworker, a tributary, and a family member of the employer living with the latter or where the Law prohibits as a worker. Besides, compensation for bodily injury, there is provision for payment of Medical Expenses as a result of the injury. He said an employer may also choose to insure his liability under the Act and in addition can extend his liability to cover claims under Common Law.

Meanwhile, he called on workers’ unions under the Ghana Trade Union Congress (TUC) to ensure that employers adhere to the Insurance Act in respect to the protection of workers against occupational hazards.

“Workers Unions and Associations must check whatever insurance covers or protection under which workers operate, we must begin to holistically protect the interest of workers.”
Irwin Cofie