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Insurance companies must come clear on premiums

Business News of Monday, 8 February 2016

Source: citifmonline.com

Deputy transport minister, Joyce Bawa Mogtari

The Ministry of Transport has called on insurance companies to come clear on the recent increase in third party insurance premiums. The Ministry of Transport has rejected claims that vehicular insurance premiums have gone up by 400%, explaining that they are only aware of a 25% increase in third party insurance premiums which began this year. However, some drivers calling themselves the Progressive Commercial Drivers Union contend that insurance companies increased the premiums by as much as 400 percent.

They have thus threatened to embark on strike effective today [ Monday] until the premiums are reviewed downwards. At a press conference last Tuesday, the Ghana Private Road Transport Union GPRTU) and the Ghana Road Transport Coordinating Council (GRTCC), also said their commercial drivers will not work this week if the supposed increase is not reversed. The drivers threatened a similar action in 2015, arguing that insurance companies do not readily pay claims in the event of accidents, yet are eager to collect claims and increase same arbitrarily.

The Deputy Transport Minister, Joyce Bawa Mogtari, has called for calm and promised to engage the Ghana Insurers Association and the National Insurance Association on the issue

She also bemoaned the idea of blaming government for increases in insurance premiums and noted that government does not play any role in the pricing of insurance premiums.

We ve gotten to the stage where people want to take unusual steps and the idea is that whatever happens, government must take the blame. What happens in the insurance environment really has nothing to do with government.

Joyce Bawa also urged the insurers to explain the increases to the public.

If insurance premiums have gone up, I think it is the responsibility of the insurers to explain to the public why premiums are going up at this time, she stated.

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