Majority of Ghanaians do not insure their vehicles because of insurance benefits but due to ‘police harassment’, a report by the Young Africans for Opportunities (YAFO) has revealed.
The report, dubbed ‘Driver Mo 2023 Report’, indicated that insurance policies were implemented to avoid harassment on roads but not to cover owners from any financial losses incurred as a result of unforeseen circumstances.
Its objective was to make vehicle insurance an incentive for safe driving rather than paying compensation.
The exploratory report, launched in Accra on January 25, was also aimed at ascertaining motor vehicle insurance experiences in Ghana.
Speaking in an interview at the event, the President of YAFO, Nathaniel Dwamena, stressed that insurance companies in Ghana must provide incentives that promote good driving.
“Last year, in March, we started data collection, and in October, we held stakeholder engagement with key players in the insurance sector.
To promote good driving and safety, when someone drives a car for 15 or 20 years, it would be nice for insurance companies to give subscribers something when they have not had an accident. That would encourage people to drive more. From our perspective, that would be better than waiting for an accident to happen.”
Mr. Dwamena maintained that lack of insurance education was a major problem facing the insurance industry.
People don’t know third party insurance exists because of them. That is another problem that we have to help with through insurance education to help people determine what’s fake and what’s not.”
For his part, the Representative for National Insurance Commission Chairman, Charles Ansong Dankyi, highlighted the need to bring insurance closer to Ghanaians.
“I believe it’s very comprehensive research that they have carried out. And I must say that some of the shortcomings they pointed out in the insurance industry as a whole are things that we have taken in good faith. We need to work on it. Like I said, there is more work to be done. We need to bring insurance to the doorsteps of the ordinary Ghanaian and even break the language barrier.”
He further explained that the research will help the insurance business.
“When I’m going to board a truck, I should be able to text the short code *920*57# to know whether these vehicles have insurance or not. And if that particular vehicle is involved in an accident, which insurance company do I go to?
I believe this research has brought out much information about things of which insurance companies are supposed to be very aware and to even help with the insurance business as well.”
