Common Insurance Terms Explained
From “excess” and “indemnity” to “proximate cause” and “utmost good faith” — our glossary explains the terms you are most likely to encounter in a policy document or claims process.
Know Your Rights & Education
What every policyholder should know about buying, claiming, and resolving disputes.
Consumer education
Your Rights as a Policyholder
Under the Insurance Act, 2021 (Act 1061), every person who holds an insurance policy in Ghana is entitled to fair treatment. Your key rights include:
- Receive a copy of your policy document in a language you understand before or at the time of purchase.
- Be given a clear explanation of what is covered, what is excluded, and what your obligations are as a policyholder.
- A fair, transparent, and prompt claims process — the insurer must acknowledge your claim and keep you informed of its status.
- Receive a written explanation if your claim is rejected or partially settled, including the specific policy clause relied upon.
- A free-look period after receiving your policy document during which you may cancel and receive a refund of premiums paid (subject to any deductions for cover already provided).
- Lodge a complaint with your insurer or the NIC if you are dissatisfied with how a matter has been handled.
- Protection of your personal data in line with applicable data protection laws.
Before You Buy a Policy
Taking a few steps before purchasing insurance can save you significant trouble later. Always:
Verify the licence of the insurer or intermediary
All insurers, brokers, and agents operating in Ghana must be licensed by the NIC. Use the Verify tool before paying any premium.
Read the policy document carefully
Understand exactly what is covered, what is excluded, the sum insured or assured, the premium, and the renewal terms before you sign.
Disclose all material information
Insurance contracts are based on utmost good faith. Failure to disclose relevant facts — such as a pre-existing medical condition or prior claims history — can void your policy.
Confirm the claims procedure
Ask how and where to report a claim, what documentation you will need, and what the typical settlement timeframe is.
Keep your documents safe
Store your policy document, premium receipts, and any endorsements securely. You will need them when making a claim.
Making a Claim
When something goes wrong, acting quickly and keeping good records makes a significant difference to your claim outcome.
Notify your insurer promptly
Most policies require you to report a loss within a specified period. Delay may affect your claim. Check your policy for the exact requirement.
Document the loss
Gather evidence such as photos, receipts, medical reports, or a police report (for motor accidents and theft). The more evidence you have, the smoother the process.
Complete the claims form truthfully
Fill in all sections accurately and completely. Providing false information is grounds for repudiation and may constitute fraud.
Follow up
Keep a record of all communications with your insurer. If you do not receive a response within a reasonable time, follow up in writing.
Escalate if needed
If your claim is rejected or unreasonably delayed, you have the right to complain — first to the insurer's complaints desk, and then to the NIC.
Resolving Disputes
If you are dissatisfied with how an insurer has handled your claim or complaint, you do not have to accept it.
Raise it with your insurer first
Write formally to the insurer's customer service or complaints department, clearly describing the issue and what resolution you are seeking.
Contact the NIC if unresolved
If the insurer fails to resolve your complaint within a reasonable time or you are dissatisfied with the outcome, contact the NIC Consumer Affairs Division.
What the NIC can do
The Commission investigates complaints against licensed entities, mediates disputes, and can take regulatory action where an insurer has breached the Insurance Act, 2021 (Act 1061) or its directives.
Insurance Terms
Insurance contracts often use technical language. Understanding key terms helps you read your policy with confidence and know exactly what you are covered for.