It is compulsory for employers with 15 or more employees to insure their liability under the Insurance Act, 2021 (Act 1061).
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.
The Employer Liability Insurance is mandatory under the Insurance Act as well as the Workmen’s Compensation 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.
Mr. Irwin Cofie, Deputy Head of Marketing, SIC Insurance PLC, explained that; “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”.
Mr. Cofie was speaking at the Tema Office of the Ghana News Agency as part of its “End of Month Stakeholder Engagement and Workers Appreciation Day” – an initiative which creates a platform for state and non-state actors to address national issues.
The monthly engagement also serves as a motivational mechanism to recognize the editorial contribution of reporters towards national development in general and the growth and promotion of the Tema GNA as the industrial news hub.
Mr. Cofie said the Workmen’s Compensation Act made it compulsory for employers of labor to set aside funds to compensate any worker who may sustain an injury at the workplace whether or not the Employer was to blame.
However, he expressed concern that the Public Liability Insurance compliance level in the country was not good, as some public entities did not have insurance for their workers, and called on employers to adhere to the Insurance Act.