FIRST INSURANCE COMPANY LTD vs NATIONAL INSURANCE COMMISSION

This is an application filed in the Registry of this Court by the Plaintiff (hereinafter known as the Applicant), on 13th July, 2022 for an order of Interlocutory Injunction against the Defendant (hereinafter known as the Respondent). The Applicant prayed for an order to restrain the Respondent from continuing with its enforcement action against the Applicant until the final determination of the matter set out in an Affidavit in Support of the application. From paragraph 7 onwards of the Affidavit reads as follows:

7. That on 16th December 2022 and 14th February 2022, the Defendant/Respondent purporting to be exercising its mandate as the regulator of the insurance industry issued notices to commence an Enforcement Action against the Plaintiff/ Applicant. Attached herewith and marked as Exhibit A, B and C are copies of the Letters notifying Plaintiff/ Applicant of the enforcement Action.

8. That I am advised by counsel and verily believe same to be true that the Defendant/Respondent is issuing a directive to the Plaintiff to increase the MCR from Fifteen Million Ghana Cedis (GHS 15,000,000.00) to Fifty Million Ghana Cedis (GHS 50,000,000.00) failed to ensure that it considered the risks to which the Plaintiff was exposed.

9. That I am advised by counsel and verily believe same to be true that at no point in time did the Defendant/Respondent request for a valuation of the risks applicable to the Plaintiff/applicant considering the nature, scale, complexity and risk profile of the Plaintiff/ Applicant’s business.

10. That I am advised by counsel and verily believe same to be true that the statutory consequences for failing to meet the stated capital (an existing MCR), as well as a new MCR is an administrative penalty and not an enforcement Action.

11. That I am advised by counsel and verily believe same to be true that no Remedial Measure in the form of a Recovery Plan for instance has been requested from the Plaintiff buy the Respondent as mandated by section 167 of Act 1061.

12. That I am advised by counsel and verily believe same to be true that there are therefore serious questions to be tried in the substantive suit.

13. That the Plaintiff/ Applicant to date has been able to meet its liabilities to its clients as and when they fall due despite the enforcement places on it since January 2022 in the face of declining revenue.

14. That I am advised by counsel and verily believe same to be true that the Defendant/Respondent if it was to be a