Risk-taking is an inevitable part of human life. Almost every decision we make on a daily basis involves some sort of risk-taking. This is why insurance is a major necessity as we go through life.
Insurance is meant to cushion us whenever life’s decisions go on the rocks. The reason for a vehicle insurance is no different.
Vehicle insurances protect motorists from enduring huge financial losses as a result of driving a car. With the right insurance, a driver can protect himself, family members, passengers or other drivers, should an accident occur.
A good car insurance may even save you from the headache of towing, repairs and necessary part replacements.
In Ghana, road transportation is the major means of commuting. The majority of the country’s population depends on road transport to commute to work, school and any daily activity.
A significant number of the nation’s population are still unable to own their personal vehicles and depend largely on mini-buses known as “tro-tro” operating in both formal and informal transport sectors.
Vehicle insurance is the most popular insurance service provided by the country’s insurance sector.
It accounts for approximately 45% of the income of the country’s insurance industry.
Per the country’s regulations, a certain level of vehicle insurance is mandatory, there are laws implemented in this regard that make the country’s stance on the issue clear. Subsequently, existing laws criminalize persons without vehicle insurance and prescribe fines or imprisonment.
This is the major factor that puts drivers, especially commercial drivers at the mercy of the police. Commercial drivers who operate mini-buses and other commercial vehicles as a business mainly rely on this as a source of income to feed themselves and their families.
It is for this reason that drivers in this category find it too costly to risk having their driver’s license being taken away. Be it facing imprisonment, a fine or seizure of a driver’s license, some events would be considered injurious to these commercial drivers. Drivers (Private and commercial) become vulnerable to police harassment and are subject to payment of unofficial fees to police officers who arrest them for defaulting insurance regulations.
In an advocacy bid, the Young Africans for Opportunity (YAFO) launched the Driver Mo project which seeks to advance a better vehicle insurance policy to protect livelihood and secure a better future in Ghana. YAFO has conducted research on vehicle insurance experiences across the 16 regions of Ghana.
Findings regarding the experience of vehicle insurance policies in Ghana will be presented at the stakeholders’ engagement involving insurance companies, National Insurance Commission, Ghana Police, GPRTU, Insurance Consultants and Lawyers in Accra on 25th October 2022.
It engages vehicle owners and road users in various regions across the country to assess their knowledge, and benefits derived from various vehicle insurance policies.
The outcome of this project seeks to protect the income of insurance holders, promote market-driven insurance and provide behavioural change among vehicle insurance policyholders.
YAFO through its Driver Mo project will engage various motor/vehicle insurance stakeholders in Ghana on the experiences of vehicle insurance and the findings of the research conducted on motor/vehicle insurance in Ghana and the way forward for stakeholders and insurance holders to reform the sector.
This event is slated to come off on the aforementioned date between the hours of 2:00 pm to 5:00 pm at the Africa Regent Hotel in Accra. Attendance at this event is strictly by invitation.
Article by: Benedicta Nelmon/TAFO
