Yemisi Izuora
The National Insurance Commission (NIC) of Ghana has indefinitely suspended plans to increase motor insurance tariffs by 400 percent to allow for broad consultation with stakeholders.
The Ghana Insurers Association, in consultation with the General Insurance Council and other stakeholders recently announced that it had increased third party motor insurance tariffs.
Under the new policy, owners of private cars, who used to pay GH¢67 per annum, are to pay a total premium of GH¢471.
Taxi cabs owners are to pay GH¢576 while those with hiring cars, mini and maxi buses are to pay GH¢586.
Owners of motorcycles are to pay GH¢256 per annum while owners of ambulance/hearse are to pay GH¢483 henceforth. Owners of articulated trucks and tankers are to pay GH¢821.
According to the insurance bodies, they undertook a critical appraisal of the motor insurance portfolio and the huge and ever increasing liabilities assumed by underwriter both under the third party injury and death and the own damage claims.
However, the implementation of the new tariffs, which should have started June 9, 2015, was swiftly opposed by car owners and commercial drivers who threatened to embark on a strike.
The leadership of the Ghana Road Transport Coordinating Council GTRCC revealed that drivers would form their own insurance companies.
They wondered why the insurance companies would exorbitantly increase the premiums at a time when they were required to pay for seatbelts and road worthiness, among others.
Protest by the drivers compelled the Insurance Commission to suspend the move and call for further consultation.