What is Insurance?
Insurance is a system that provides financial support when unexpected events cause loss, damage, or injury. By paying small premiums, people and businesses are protected against bigger risks, making it easier to recover when accidents or disasters happen. In Ghana, common types of insurance include health, car, home, business, and life insurance.
How Insurance Works
Insurance companies collect premiums from many clients and use that pool to cover claims when misfortunes occur. Individuals often buy health or car insurance, with motor insurance being mandatory by law in Ghana. Businesses also rely on insurance tailored to their activities—for instance, a transport company may insure its vehicles, while hospitals secure cover against medical negligence.
Apart from these, there are also special policies such as travel insurance, wedding cover, and even protection against business interruptions. Overall, insurance helps Ghanaians reduce financial stress when faced with unexpected challenges.