The rising spate of road traffic accidents in Ghana is hitting insurance vendors hard, triggering underwriting losses, and consequently they’ve increased premiums for motor vehicle insurance.
The new premiums are GH1.58 daily for taxis, GH2 for mini buses carrying 15 passengers and GH2.8 for maxi buses.
The total basic premium for private and company individuals is GH430 for third-party insurance each and every year.
Speaking to journalists in Accra Tuesday June 9, 2015, Mr. Atsu Kosi Menyawovor, CEO with the Ghana Insurers Association (GIA) said motor vehicle accident portfolios of insurance carriers are suffering losses, because of “the low-rate and high accident rate.”
According to Secretary of state for Transport statistics as at October 2014, as many as 11,035 cases of road traffic crashes have been reported involving 16,749 vehicles, 9,648 injuries and 1,606 deaths.
Mr. Menyawovor told journalists that insurers are compelled under law to pay for says it will anyone that is injured in a accident.
“It is instructive to make note of that just about every injury or death resulting from a road accident makes a claim payable by an insurance provider,” he explained, adding, “the amounts may be of up to GH220,000 plus much more especially, any time a order from the court emerges. Now we have had courts awarding up GH10 million as soon as the premium paid is GH53. This specific court award against SIC became public knowledge after some duration ago.”
He however added that your premium that vehicle owners is “grossly underpriced as opposed to claims that insurance agencies pay.”
He established that insurance carriers pay claims good frequency and seriousness of accidents, however, the third-party car insurance policy cover has long been grossly underpriced in terms of the premium so it generates, but however an individual can injury and death claims that happen to be paid because of accidents involving policy holders was anxiously superb.
Meanwhile, or trains drivers in addition to their associations have threatened to boycott the insurance companies and begin their own individual.
By Emmanuel K. Dogbevi