Motor insurance premium goes up
An upward review of the minimum premium for third party motor insurance announced by the Ghana Insurers Association (GIA) yesterday has created disaffection among motoring public.
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The new policy, which would make private saloon car owners pay a minimum premium of GH¢1.60 daily, would culminate to about GH¢584 annually instead of the GH¢183.70 old tariff.
For taxis, they would pay GH¢1.45 daily, which amount to about GH¢529 in a year, while a 55-seater bus would pay GH¢2.96 a day, about GH¢1,080 per annum.
Additionally, commercial vehicle owners would have to pay GH¢2,000 to cover third party property damage. They are also required to pay for personal accident cover of GH¢4,000 for the driver and the conductor.
Motorcycle owners would also pay GH¢0.79 a day, amounting to about GH¢288 in a year.
Rationale
Explaining the rationale for the review to the Daily Graphic, the Head of the Technical Unit of the GIA, Mr Winfred Dodzih, said it was as a result of the increase in road accidents which had led to increasing demands for calims.
Besides, he said, the Motor Compensation Fund set up to cater for third party claimants had depleted.
“The inputs coming in cannot meet our outputs. We cannot satisfy our customers. The review is long overdue because since 2010 there has not been any increment,” he said.
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The review allows car owners to purchase insurance on a short-term basis – monthly or quarterly.
Third party
In Ghana, it is compulsory for all vehicles to take a third party insurance cover to protect the lives and property of third parties that are at risk as a result of accidents.
The Compulsory Third Party Motor Insurance Act 1958 seeks to protect the interest of innocent of third parties, including passengers, pedestrians and other road users or motorists who may sustain injuries or death as a result of an accident.
It is also to ensure that compensations are paid to such victims and their beneficiaries.
Compensation cover
Motorists can also take optional comprehensive cover which allow them to have their cars replaced in case of accident or theft.
Mr Dodzih said although the comprehensive motor policy had not been reviewed the increment in the third party tariffs would in effect affect the comprehensive policy holder.
That, he said, was because of the third party component in the comprehensive insurance policy.
Complaints
Some drivers expressed worry over the reviewed tariffs, claiming that it was too high.
They added that with the upward adjustment in fuel prices, high cost of spare parts and high road toll charges, it had become increasingly expensive to run transport business in the country.
We shall be forced to pass on the cost to passengers,” they said.
Mr Patrick Ashinyo, a driver, claimed that the increases were too high, since drivers would now have to pay more than 500 per cent of the old tariff.