Ghana’s Rumored No-Insurance-No-Entry Policy, Should Nigeria Do the Same?
On January 25, 2022, rumour had it that Ghana had imposed an insurance scheme known as Akwaaba Insurance as part of requirements for international travellers who arrived at the Kotoka International Airport. The regulation will supposedly take effect in Q1 2022.
In support, three Ghanaian insurance companies, namely; GLICO Insurance, Enterprise Insurance and State Insurance Company PLC (SIC), were said to have been contracted to ensure the policy’s rollout.
However, a statement by the National Insurance Commission debunked the reports saying, “The NIC wishes to advise the general public that the said ‘Akwaaba Insurance’ has not been approved by the Commission and as such, any publication to that effect should be disregarded.”
The NIC further stressed that the public should be wary of information being peddled and circulated in the media as not all information should be accepted hook-line-and-sinker.
Although the news is fake, one cannot help but imagine what such a policy would do if it were true, especially in Nigeria, where insurance is still “not a thing.” For example, only 3% of citizens have a valid health insurance cover as of this writing.
According to a December 2021 piece by Dataphyte, 97% of Nigeria’s population do not have health insurance. More so, the 3% are provided for by employee health coverage. Out of the 3%, 56.7% of those covered are male as against 43.3% of women. Today, millions of Nigerians have no access to affordable healthcare, especially those without formal employment.
Although the National Health Insurance Scheme (NHIS) has continued to introduce new health insurance programmes, its net has not reached millions of people in the informal sector. As a survey shows, the cumulative rate of coverage of the NHIS is less than 1% of those covered by health insurance. And this is only health insurance.
As we have successfully made Covid-19 vaccination a prerequisite for travel, what happens when we do the same with health or travel insurance?
What would Nigeria’s insurance industry look like when we adopt a compulsory travel insurance policy, not for the benefit of insurance brokers but the citizens and visitors?
To fully grasp the importance of travel insurance, you must understand its perks and burdens.
What is Travel Insurance?
“Travel insurance is a type of insurance that covers the costs and losses associated with travelling. It is useful protection for those travelling domestically or abroad.”
A 2021 survey by the UK-based insurance company, Battleface, revealed that almost half of Americans have had to bear the cost of losses when travelling without travel insurance. In Africa, it’s way more than half.
When weighing the options, insurers often consider travel insurance as the least important compared to the likes of health or automobile insurance. But like it or not, travel insurance is not an add-on. It is necessary!
Picture this: what’s the first thing that comes to mind when you encounter hitches when travelling to a different country? The first inclination would be to visit the country’s embassy for assistance. But as is typical of such situations, huge disappointments often await travellers who eventually discover how inefficiently most embassies are run. In some instances, no help is rendered.
Embassies are helpful for many reasons, such as replacing a stolen or missing passport, sorting medical assistance or searching for a lost friend or family member. But that is as far as it can get most times. Its purview does not include paying medical bills or any financial challenges on the trip.
On the other hand, travel insurance covers costs that include emergency medical benefits, emergency medical transportation benefits, and coverage for other expenses like trip cancellation and lost or stolen luggage.
Should Travel Insurance be Compulsory?
The motive behind Ghana’s rumoured travel insurance drama remains elusive. But if Nigeria were to make it compulsory, what would that mean for millions of Nigerians and foreigners who troop in and out of the country? Will such a policy foster security? Will it enhance travellers’ safety? What would our relationships with other nations look like when such a policy goes live? Will it make some insurance oligarchs richer and more powerful? What kind of structures should be in place to support such a policy?
People are more likely to adopt and ease into such a policy when they trust the government making it. That kind of buy-in will only come when government consistently communicates with travellers “in the language they can understand.”
Implementing anything that controversial would require a range of mechanisms. But I’ll harp on two.
A. Orientation, Adoption
No policy will receive widespread adoption if the people it was created for do not appreciate its benefit. Nigeria-bound travellers, most of whom are Nigerians, do not think they need health insurance, let alone travel insurance.
The religious nature of the typical Nigerian ensures that the bulk of responsibility for health and safety rests on a divine being; God. Worse, most believe that such a policy is another way to channel resources from the people into the coffers of some oligarchs. This perception must change.
For a compulsory travel insurance policy to thrive, it must begin with general reorientation at all levels. The policy must do more than outline directives; it must show what’s in it for citizens, with them at the center. This would create a global and national consciousness.
B. Enforcement
Most policies survive the orientation and adoption stages. Enforcement sustainable enforcement is where many promising policies fall apart in Nigeria. There must be clearly defined sanctions for defaulting individuals. Through operational autonomy and adequate funding, the government can empower the relevant law enforcement agencies to reward compliance and punish behaviour that undermines the policy. Policies like this encounter their toughest obstacles in the early and middle years. When they endure long enough, they become more systemic and regular.
If Nigeria decides to enforce a No-Insurance-No-Travel policy, it must be anchored on these reasons:
1. Health: The policy should be anchored on health. This ensures that travellers are prepared against hitches during trips. Take the Ebola and Covid-19 crisis, for instance. I can’t recount the aftermath on the people and economy. Numerous travel medical plans also include Covid-related medical expenses. The policy should be enforced having health, especially, Covid-19 protection and coverage in mind.
This covers any medical complications associated with contracting Covid-19 or any other life-threatening illness during trips. The insurance will also foot doctor bills, medication, and hospitalisation should the need arise. In a situation of an extended stay, coverage such as travel delay insurance can cover the cost of COVID-19 quarantine or long-term hospitalisation.
When a travel insurance policy becomes compulsory, it will come in handy for foreigners who contract diseases or illnesses during their stay in the country and extend the duration of their trip.
2. Security: Nigeria may not necessarily be a hotbed of terror or chaos, but the country has its fair share of internal crisis enough to set foreigners on their toes; bandits, terrorist groups and kidnappers. Nigeria has been challenged by an increasing state of insecurity on a multidimensional scale. Concerns have heightened about how people should live to ward off potential attacks, yet not much has been said about how to help foreigners become wary of these happenings. As much as the government is making deliberate efforts to curb these forms of insecurity, travellers must understand their role.
If Nigeria mandates incoming travellers to get its version of Akwaba Insurance, the goal should ultimately promote foreigner’s safety rather than being get-rich-quick-scheme for a privileged few.
