In Ghana, specific insurance policies are mandated by law to protect both individuals and businesses while promoting a culture of risk management. The most prominent of these is the Motor Vehicle Insurance Policy, which is compulsory for all vehicle owners. This policy ensures that victims of road accidents receive compensation for damages or injuries caused by a motorist. Additionally, the Workers’ Compensation Insurance is required for employers to cover employees in the event of work-related injuries or illnesses, thereby safeguarding their rights. Furthermore, public liability insurance is essential for businesses that interact with the public, as it protects against claims resulting from accidents or injuries occurring on their premises. Understanding these insurance policies is crucial for compliance and effective risk management in Ghana.

Insurance is not just a financial safety net—it’s also a legal requirement in many situations in Ghana. Whether you’re a car owner, business operator, property developer, or employer, there are specific insurance policies that the law says you must have.

This guide breaks down all mandatory insurance policies in Ghana, why they’re required, and who needs them. By the end, you’ll understand which policies are compulsory and how they protect you.

Why Does Ghana Require Certain Insurance Policies?

The National Insurance Commission (NIC) enforces mandatory insurance to:

• Protect lives and property

• Reduce financial loss after accidents

• Ensure third parties are compensated

• Maintain public safety

These laws aren’t optional; they apply to individuals, businesses, and institutions across the country.

1. Motor Insurance – Compulsory for All Vehicle Owners

This is the most widely known mandatory insurance in Ghana.

✔ What the Law Says

Under Ghana’s Motor Third Party Insurance law, every vehicle on public roads must be insured.

✔ Types of Motor Insurance

• Third-Party Only (Required by Law) – covers injury, death, or property damage caused to others.

• Third-party, fire & theft

• Comprehensive

Even if your vehicle is parked but registered for road use, third-party insurance is compulsory.

✔ Who Must Have It

• Private car owners

• Commercial drivers

• Motorcycle riders

• Company-owned vehicles

Driving without valid insurance attracts fines, vehicle seizure, or prosecution.

2. Fire Insurance for Commercial Properties (Compulsory Fire Insurance)

Ghana’s Insurance Act mandates that all commercial buildings must have fire insurance.

✔ What the Law Covers

• Fire

• Flood

• Earthquake

• Explosions

• Property damage

✔ Who Needs It

• Shops

• Offices

• Warehouses

• Factories

• Schools

• Churches

• Malls & supermarkets

If the building is used for business or public purposes, fire insurance is mandatory.

3. Public Liability Insurance for Public Event Venues

If you run events or own venues where members of the public gather, Ghanaian law requires public liability insurance.

✔ Why It’s Required

This policy covers:

• Injuries suffered by the public

• Accidents during events

• Damage to public property

✔ Who Must Have It

• Event centers

• Stadiums

• Movie theaters

• Churches & auditoriums

• Nightclubs

• Hotels hosting large gatherings

This policy protects both event organizers and attendees.

4. Builders’ Liability Insurance (For Construction Projects)

Before any construction begins, contractors must have contractors’ all-risk or builders’ liability insurance.

✔ What It Covers

• Collapse of buildings under construction

• Injuries to workers

• Damage to nearby properties

• Construction site accidents

✔ Who Needs It

• Real estate developers

• Building contractors

• Companies constructing roads, bridges, or commercial structures

The NIC now requires proof of this insurance before issuing building permits in many districts.

5. Marine Insurance for Imported Goods

If you import goods into Ghana, marine insurance is mandatory.

✔ What It Covers

• Damages to goods shipped by sea or air

• Loss during transit

• Theft or contamination

✔ Who Must Have It

• Importers

• Freight forwarding companies

• Businesses that move goods across borders

The law requires importers to purchase this policy from a Ghana-licensed insurance company, not foreign insurers.

6. Group Life Insurance for Employees (Some Sectors)

Certain industries require employers to provide group life insurance to protect workers.

✔ Covers:

• Death benefits

• Permanent disability

• Critical illness (in some policies)

✔ Mandatory For:

• Mining companies

• Oil & gas companies

• Large factories

• High-risk industries

Though not universal, these sectors must insure their staff due to workplace risk levels.

7. Workmen’s Compensation Insurance – Required for All Employers

Every employer in Ghana must insure their employees under the Workmen’s Compensation Act, 1987.

✔ What It Covers

• Injuries at work

• Permanent disability

• Medical expenses

• Death benefits to dependents

✔ Who Needs It

• Small businesses

• Big corporations

• Retail shops

• Restaurants

• Construction companies

If you employ even one worker, this insurance is mandatory.

Why You Should Not Ignore Mandatory Insurance

Failing to comply with Ghana’s compulsory insurance laws can lead to:

• Heavy fines

• Business closure

• Lawsuits

• Denied building permits

• Vehicle impoundment

Insurance is not just a legal requirement—it protects you from unexpected financial loss.

Final Thoughts

Ghana has put these mandatory insurance policies in place to protect citizens, businesses, and the economy. Whether you own property, run a business, operate a vehicle, or employ workers, complying with the law helps you avoid penalties and ensures you’re financially protected.

If you’re unsure which policy applies to you, consult a licensed insurance provider or agent in Ghana.