Dr. Bawumia counseled as executive proclaims obligatory use of Ghana Card for insurance coverage – Life Pulse Daily
Editor-in-chiefDecember 16, 20255 Mins read48
Dr. Bawumia counseled as executive proclaims obligatory use of Ghana Card for insurance coverage – Life Pulse Daily
Introduction
Recent regulatory announcements in Ghana have sparked widespread discussion about the Ghana Card and its role in the nation’s insurance sector. The National Insurance Commission (NIC) has declared that, beginning in January 2026, the Ghana Card will become a compulsory identifier for every insurance transaction, including the issuance, renewal, and claims processing of policies. This move is being framed as a step toward modernising the insurance market, strengthening Know Your Customer (KYC) protocols, and enhancing Anti‑Money Laundering (AML) compliance. The announcement has generated a surge of commentary on social media, with many observers linking the policy shift to the advocacy of Dr. Mahamudu Bawumia, the former Vice President who has long championed the Ghana Card as a cornerstone of digital identity in Ghana.
Key Points
- The NIC circular mandates that all insurers must request a valid Ghana Card before completing any insurance transaction.
- The requirement applies to new policy sales, policy renewals, endorsements, and claims submissions.
- Effective date: January 2026, giving insurers a transition period of several months.
- Rationale: improve claims management, tighten KYC and AML standards, and align Ghana’s insurance market with international best practices.
- Legal basis: The directive is issued under the authority of the Insurance Act, 2022 (Act 1065), which empowers the NIC to set regulatory standards for insurers.
- Stakeholder reaction: Strong praise for Dr. Bawumia’s prior advocacy, mixed reactions from opposition parties, and general public curiosity about practical implications.
Background
Ghana introduced the Ghana Card in 2018 as a unified national identity document that consolidates the functions of the old Voter ID, Taxpayer ID, and National Health Insurance Scheme cards. Since its rollout, the Card has been adopted for a variety of public and private sector services, including:
Banking and Financial Services
All banks in Ghana require the Ghana Card for account opening, as well as for routine deposit and withdrawal transactions. This widespread acceptance has made the Card a de‑facto standard for identity verification.
Telecommunications
Mobile network operators also mandate the Ghana Card for SIM card registration, further embedding the document into everyday transactions.
Political Context
Dr. Bawumia, while serving as Vice President, publicly championed the Ghana Card as a “better alternative to 1,000 interchanges,” emphasizing its potential to streamline identity verification across sectors. Critics from the then‑opposition National Democratic Congress (NDC) questioned the cost and feasibility of the project, but subsequent implementation has validated many of the claims made in favor of the Card.
Analysis
From a regulatory perspective, the NIC’s directive represents a significant evolution in how insurance companies verify client identity. Traditionally, insurers relied on a combination of documents — such as passports, driver’s licenses, and utility bills — to satisfy KYC requirements. By making the Ghana Card the sole accepted identifier for insurance transactions, the NIC aims to:
Standardise Identity Verification
The Card’s digital architecture includes biometric data and a unique number that can be instantly validated against government databases. This reduces the likelihood of forged documents and speeds up the onboarding process for policyholders.
Strengthen AML Compliance
<pMoney laundering risk in the insurance sector often stems from the ability to conceal the true identity of beneficiaries. The mandatory Ghana Card requirement enables insurers to perform more robust background checks, thereby supporting national AML initiatives.
Impact on Consumers
<pFor policyholders, the change means that any interaction with an insurer — whether purchasing a new policy, renewing an existing one, or filing a claim — will now require presentation of the Ghana Card. While this may add a step to the process, it also promises greater security and reduced fraud, which can translate into more reliable service for consumers.
Legal Implications
Under Ghanaian law, failure to comply with the NIC’s directive could result in regulatory sanctions, including fines or suspension of an insurer’s operating licence. Additionally, the requirement may intersect with data‑protection statutes, obligating insurers to handle Ghana Card data in accordance with the Data Protection Act, 2012.
Practical Advice
Policyholders and insurance professionals can take the following steps to prepare for the upcoming mandate:
1. Verify Card Validity
Ensure that your Ghana Card is current, unexpired, and that your biometric data is up to date. Any discrepancies may delay policy transactions.
2. Update Personal Information
If you have recently changed your name, address, or other personal details, update these records on the Ghana Card portal before approaching an insurer.
3. Keep Digital Copies
Many insurers will accept a scanned or photographed version of the Ghana Card for online transactions. Store a clear, legible copy in a secure location for easy access.
4. Contact Your Insurer
Reach out to your insurance provider to confirm the exact documentation they will require under the new rule. Some companies may offer assistance with Card verification through their customer service portals.
5. Anticipate Transition Period
While the directive becomes effective in January 2026, many insurers plan to implement the change gradually. Use this window to familiarise yourself with the process and avoid last‑minute complications.
FAQ
What is the Ghana Card and why is it being used for insurance?
The Ghana Card is the country’s official national identity document. The NIC has decided to make it mandatory for insurance transactions to streamline identity verification, improve KYC compliance, and reduce fraud.
When will the requirement take effect?
The directive stipulates that all insurance transactions must be processed with a valid Ghana Card starting January 2026.
Does the rule apply to all types of insurance?
Yes. The requirement covers life insurance, motor insurance, health insurance, property insurance, and any other product offered by licensed insurers in Ghana.
Will existing policies be affected?
Existing policies will remain valid, but any renewal or amendment after January 2026 will necessitate presentation of the Ghana Card.
What happens if I do not have a Ghana Card?
Individuals without a Ghana Card should apply for one through the official registration centres. The Card is now required for a wide range of services, so obtaining it is advisable.
Are there any exemptions?
The NIC has not announced any blanket exemptions. However, temporary provisions may be made for foreign investors or specialised insurance products, subject to regulatory approval.
How does this affect foreign insurance companies operating in Ghana?
Foreign insurers must also comply with the Ghana Card requirement when interacting with Ghanaian policyholders, ensuring that all client identities are verified through the Card.
Conclusion
The announcement that the Ghana Card will become a compulsory identifier for all insurance transactions marks a pivotal moment in Ghana’s financial regulatory landscape. By aligning the insurance sector with the same identity verification standards used in banking and telecommunications, the National Insurance Commission aims to enhance security, reduce fraud, and bring the market in line with international best practices. The directive also serves as a vindication of Dr. Mahamudu Bawumia’s long‑standing advocacy for the Ghana Card, a policy that has now become integral to the nation’s digital identity infrastructure. For consumers, the change promises greater protection of personal data and more reliable service, while insurers must adjust their operational procedures to meet the new regulatory expectations. Stakeholders are encouraged to stay informed, verify the validity of their Ghana Cards, and engage proactively with their insurers to ensure a smooth transition when the policy takes effect in January 2026.
Sources
1. National Insurance Commission (NIC) Circular on Mandatory Ghana Card Use for Insurance Transactions, published December 2025.
2. Insurance Act, 2022 (Act 1065), Ghana.
3. Data Protection Act, 2012, Ghana.
4. Life Pulse Daily article “Dr. Bawumia counseled as executive proclaims obligatory use of Ghana Card for insurance coverage,” December 16, 2025.
5. Official Ghana Card registration portal – https://ghana.gov.gh/ghana-card.
6. Ghana Ministry of Finance press release on digital identity initiatives, 2024.
7. Public statements by Dr. Mahamudu Bawumia on the Ghana Card, 2019‑2023.
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