SIC Insurance may face financial challenges – Workers

Business News of Wednesday, 4 March 2015

Source: GNA

SIC Ghana

The SIC Insurance Company Limited has appealed to the Commissioner of Insurance to intervene in the case in which it is likely to pay a liability of GH¢91 million to a local company.

The company said the payment of such an amount could paralyse its operations.

The executive of identifiable groups of the SIC made the appeal during a courtesy call on Ms Lydia Lariba Bawa, the Commissioner of the Commission of Insurance in Accra.

The members of the delegation were from SIC Managers Association, SIC Professional and Managerial Staff Union (PMSU), SIC Senior Staff Association (SSA) and SIC Local Union.

The delegation was led by Mr Michael D. Biney, Secretary of the PMSU of the Union of Commercial Industry & Finance Workers (UNICOF) of the Trade Union Congress (TUC).

According to the delegation, the SIC issued a credit guarantee insurance bond to Italconstruct International Limited, a real estate developer, in order to access a loan from Ivory Finance Limited.

Italconstruct International Limited defaulted on the loan repayment and somehow the outstanding loan is now claimed to be in excess of GH¢91million.

As a result of the default, Ivory Finance Limited is demanding that SIC Insurance Company Limited to pay the full amount but the company is unable to honour such an obligation.

The leaders expressed concern that a bond value of GH¢19.3m issued in 2013 for six months insurance period, translating into the alleged GH¢91m as of 2014 “seems to be a mystery” that needed serious investigation.

Presently, the case is in court and if there is no intervention and SIC is compelled to honour the court judgement, technically, SIC will face financial challenges.

The members of the delegation appealed to the commissioner to protect the SIC to save its over 500 workers and 600 intermediaries and their families from the current unpleasant situation which could easily affect the livelihood of the workers.

In her reaction, the commissioner said she would do her best with the law to resolve the unpleasant situation.