“Ghana’s Mandatory Housing Insurance – Is the Law Being Enforced?”

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Interview : The Deputy Commissioner/Legal Director of National Insurance Commission PE: Do you think owners of commercial building are aware of the existence of an insurance mandatory law in Ghana? DC: The Insurance Act, 2006 (Act 724), was passed in December 2006. By law, citizens are expected to be aware of the provisions of the Act, including Section 183 and 184 of the Insurance Act which make the Insurance of Commercial Buildings, compulsory. However, information about the Compulsory Insurance of Commercial Buildings is not as widespread as expected. PE: Are the insurance companies in Ghana doing enough to educate the public on the benefits of insuring their homes? DC: Individual Insurance companies are educating the Public on the compulsory insurance of Commercial Buildings and the benefit thereof. The NIC on its Regional Public Education also carries out Public Education on compulsory Insurance of Commercial Buildings. The latest Public Forum was held in Kpando and Hohoe. During the last “Financial Literacy Week Programme” held in September, 2009, the Insurance Industry focused its Public Education among other things, on Compulsory Insurance of Commercial Buildings. PE: In your own view, what do you think could be done by the government and stakeholders to ensure that The Mandatory Law on Building Insurance is not just a written statement but a law duly enforced? DC: Government and Stakeholders should carry out sustained Publicity and Public Education. Sanctions for infringement should be enforced and publicised. Interview: Mr. A. B. Gaisie, Director (research, development and monitoring)Ghana Fire Service PE: Q1 Do you think owners of commercial building are aware of the existence of an insurance mandatory law in Ghana? Q2 Are the insurance companies in Ghana doing enough to educate the public on the benefits of insuring their homes? Q3 In your own view, what do you think could be done by the government and stakeholders to ensure that The Mandatory Law on Building Insurance is not just a written statement but a law duly enforced? Mr. Gaisie: The increase and upsurge of fire outbreaks and other types of disasters i.e. accidents, floods in recent times could be attributed to the inability of relevant stakeholders to embark on vigorous sensitisation campaign in the area of disaster preparedness, risk assessment, potential socio-economic and investment threats. All these unfortunate situations may have been avoided if the basic safety requirement and precautionary measures were to be enforced holistically by all relevant agencies. Ensuring enforcement of insurance laws in Ghana requires the collective and multi-sectoral involvement and participation of institutions which are directly connected with the provision of services to the various segments of social development in the country. It is however, significant to emphasise the fact that in spite of efforts by insurance companies to educate the public on the benefits of their respective schemes, not much has been done or achieved due to the inability of respective corporate institutions to, a) conduct proper risk assessment b) identify hazards c) ensure fire safety audit/compliance RECOMMENDED MEASURES The insurance companies must consider and recognise the urgent need to identify existing legal mandate of stakeholders and possibly incorporate these policies into the overall administration of Housing Insurance policies in Ghana. A multi-sectoral task force should be established to ensure the enforcement of rules, regulations, policies and laws covering building construction and disaster risk reduction in the country. This, however, may require the involvement and professional support of the Ghana Institute of Architects, Ghana Institute of Surveyors etc. Awareness creation and media involvement must be intensified and pursued to ensure the overall sensitisation of the public on the advantages and benefits of mandatory housing insurance. The Ghana National Fire Service is by law mandated to ensure the safety of homes, offices, commercial centres, etc through the Legislative Instrument (LI 1724) Fire Precaution (premises) Regulation 2003. It is therefore incumbent on the part of existing insurance companies to take advantage of this legal authority and ensure the enforcement and implementation of all relevant policies regarding housing insurance. The decentralised institutions and local government structures in the various Assemblies should be involved in the risk assessment and public educational programme. Finally, it is worth considering the fact that ensuring proper and mandatory enforcement of Housing Insurance Policy in Ghana requires critical study and overview of the architectural designs and safety requirements of the building construction industry in Ghana. Not much may be achieved if the collective networking approach and enforcement strategies of various stakeholders are not implemented. Conducted By Christopher Eduful Arthur

"Can a University Partnership with the Government Help Reduce the Burden on Students’ Accommodation?"

Comments by:
MR. NAT JOHNSON – ACCRA POLYTECHNIC

PE: How do you find the accommodation situation in the tertiary institutions, especially, in the universities?

NJ: I think it's deplorable especially in the residential accommodation. I'll say I'm a bit familiar with what happens at the KNUST. In our days back in the 70s, the rooms were supposed to take one person, but before the year would end, it had tripled in capacity that is, three in a room meant for a person so one would wonder where exactly somebody could sit - in the balcony or on the beds - in order to study. I reiterate that it's very deplorable since things have still not changed and I think something should be done about it.

PE: Considering how students are choked in the university hostels what can you say as far as their health is concerned because there are a lot of communicable diseases of late?

NJ: When somebody has cold he can easily infect other with it when he sneezes so air- borne diseases are likely to spread very fast.

PE: Do you consider the fees charged by the private hostels affordable?

NJ: Affordability depends on the one paying the fees. However, it's on the higher side. Notwithstanding, if one can pay, one still has to look for money and that brings a lot of stress and pressure on the one.

PE: What do you think the government and stakeholders can do to minimize or eradicate the situation?

NJ: One of the reasons for fixing the fees is he cost of building. Can the cost building not be reduced? I was looking into a magazine and other informative materials concerning building, though that's not my field but had interest in it, for affordable resources and stuffs. For example, we're interested in bricks and mortar sort of thing but I think the things done elsewhere, especially overseas is that the pillars, columns and other things are made of bricks but the inner walls are made of panels - panels here mean plywood, chipboard etc. When you go to the Trade Fair Centre, there's this kind of building that panels and some woods have been used and it's good. I think we should be thinking of such things because the materials for building are just expensive. If the cost of the building materials is one of the bases for charging higher fees then we are in big trouble.

PE: What do you think of the suggesting that the universities liaises with the government to employ an estate development firm to construct hostels on university lands and manage them, with the government playing a supervisory role especially in terms of the fees charged, etc instead of the existing situation where the universities lease the lands to the companies for them to construct the hostels and charge commercial rates?

NJ: The businessman and for that matter the estate developer wants his profit as much possible in the shortest time. Now if there is an arrangement that the owner of the land can have a representative in the management of the hostel it could help. The input of the developer must be considered carefully because if he's not there, no building will be seen. So, there can definitely be some negotiations because cost should also be recovered.

PE: Since the private universities are also patronized by bona fide Ghanaians and hence should equally have their share of any national cake, what can the government do to assist them too?

NJ: With the private universities, I can't tell you how many there are, but well, I think what they should be needing now is office accommodation as well as lecture halls and the facilities such as furniture, labs and so on; not necessarily residential accommodation for students. Probably, get the facilities that could help in their accreditation so that they can pull students or extend their horizon. They surely will need assistance to achieve all these. The academic progress should be thought of first because in the public universities they've got almost everything.

"Can a University Partnership with the Government Help Reduce the Burden on Students’ Accommodation?"

Comments by:
MR AHENE-AMANKWAH - UNIVERSITY OF GHANA, LEGON

PE: How do you find the accommodation situation in the tertiary institutions, especially, in the universities? A-A: Not the best.

PE: Considering how students are choked in the university hostels what can you say as far as their health is concerned because there are a lot of communicable diseases of late?

A-A: Health wise it's also not the best since we've encountered some communicable diseases as students increase their own numbers especially in the male hostels.

PE: Do you consider the fees charged by the private hostels affordable?

A-A: Affordability is relative. By my side, it's on the higher side because if I consider the fees charged by Ghana Hostels Limited, GHc700 per year per a person for a three bedroom apartment which takes six students and compare it with that of a two bedroom apartment still from SNITT to an individual at the cost of GHc360 per annum, then it's incredible. Here the only difference is that there is an additional bedroom but still the former takes six persons and each of them is to pay GHc700 then it's on the higher side.

PE: What do you think of the suggesting that the universities liaises with the government to employ an estate development firm to construct hostels on university lands and manage them, with the government playing a supervisory role especially in terms of the fees charged, etc instead of the existing situation where the universities lease the lands to the companies for them to construct the hostels and charge commercial rates?

A-A: Somewhere in 1994, the World Bank told the Government of Ghana that it was about time the government got away from providing hostels for students in an attempt to secure loan for students' hostel. The Bank told the government that they were prepared to give money for academic facilities like libraries etc. So, since 1994, government has never provided hostels for tertiary institutions. However, the GETFund is into the provision of offices etc and hence, SNITT was engaged to do that. If that be the case, then I think government should concentrate on providing academic facilities whist SNITT provides hostel facilities. Government is therefore not encouraging the universities to put up hostels. The University of Ghana Enterprises Ltd are managing the hostels for the universities but the traditional hostels or residential hostels are outside their jurisdiction. The university is for the government so cannot go back to the government to ask government for anything. In that wise, the university has a syndication of six banks including ADB, Cal Bank etc who take care of the building hostels. Here, the university has a representation on the board so somehow, the university also has some control on the fees charged.

"Can a University Partnership with the Government Help Reduce the Burden on Students’ Accommodation?"

Comments by:
ALHAJI YAKUBU YAHAYA - DIRECTOR FOR HOUSING, MINISTRY OF WATER RESOURCES, WORKS AND HOUSING

PE: How do you find the accommodation situation in the tertiary institutions especially in the universities?

DIR: It's not acceptable - very terrible

PE: Considering how students are choked in the university hostels what can you say as far as their health is concerned because there are a lot of communicable diseases of late?

DIR: It's obvious it has health implications and hazards.

PE: What then do you think could be done to control the fast spread of diseases at least, if the overcrowding cannot be checked?

DIR: Well, I'm neither a doctor nor medical practionner and I think the Ministry of Health should be in the best position to answer this question. However, I believe that if long distance education could be introduced, it will go a long way of helping in the sense that not every student may have to live on campus; some may live in their own homes or offices and follow lectures so it will actually reduce the overcrowding of students in one room.

PE: Do you consider the fees charged by the private hostels affordable?

DIR: Affordability is relative. On the business side it's affordable, but on the social side it's on the higher side. I think this is as a result of the resources put into the acquisition of land, and establishment of the hostels and even other factors such as taxes, salaries to hostel workers and so on. That notwithstanding, if some students could still rent a private hostel then it's affordable but comparatively to that of the campus hostels, yes, I agree it's on the higher side.

PE: What do you think the government and stakeholders can do to minimize or eradicate the situation?

DIR: I don't know what conditions the Universities give to the private developers. If the universities could give lenient conditions to the developers then of course the fees will go down, but if conditions attached are not lenient then also fees will have to go up for the developer to also meet his target as well as fulfill the conditions of the university. I also think not all students are supposed to be in the university hostels especially, those who are from the same vicinity as the university and can afford to stay in their own homes. If that can be achieved then it will be realized that the number of students who actually need to be in the university hostels - considering their distance and financial status and other factors will be less so that could minimize the situation.

PE: What do you think of the suggesting that the universities liaises with the government to employ an estate development firm to construct hostels on university lands and manage them, with the government playing a supervisory role especially in terms of the fees charged, etc instead of the existing situation where the universities lease the lands to the companies for them to construct the hostels and charge commercial rates?

DIR: The government has always focused on education. As a result, government has allocated GETFund. Education has not to do with only hostels for students, but also lecture halls. The two are equally important. The government has done all the necessary funding and hence all the universities are being furnished with halls. Policy structure should be looked at where students will be accessed to know where they come from and their financial standing before allocating hostels to them. Price controls have their negative and positive sides and as the hostels keep increasing, the fees will come down as a result of competition and space. There is a SNITT Company known as the Ghana Hostels Company that is engaged in the building of students' hostels. The public universities are already for the government so whatever decision they take is ratified by the government. I know the government gives the estate developers a tax-free period of five years. Besides, the government has other areas to look at. Let's pray that the economy picks up now that there is oil.

PE: Since the private universities are also patronized by bona fide Ghanaians and hence should equally have their share of any national cake, what can the government do to assist them too? The GETFund Act will have to be revised to cover the private universities too. Recently, there has been some sort of assistance from the government considering the roles being played by the private universities and their contributions in the education sector which goes a long way to building the human resource of the nation. The GETFund provided some private universities with buses.