By Kofi Ahovi
The new insurance premiums agreed between the insurance companies and the National Insurance Commission (NIA) has been postponed again.
This is because the transport owners have asked for extension of the implementation date to enable the completion of ongoing discussions.
The new premiums were supposed to have come into effect on July 1, 2010, but the Minister of Transportation, Mike Hammah, called for the suspension of its implementation following an outcry from commercial transport owners.
The transport owners are in talks with the insurance companies to find amicable solution to the new fixtures arguing that the prices are too much. The transport owners are asking for a gradual increase of the premiums.
Under the new tariffs approved by NIC on April 23, to correct the eight-year review interval and close the gap between third party insurers and comprehensive insurers, commercial vehicle owners would pay a 200% increase, while private vehicle owners will pay 150% increase.
Taxis would now pay GH¢232.28, mini buses of up to 20 passengers will pay GH¢268.88 and maxi buses of up to 33 passengers would pay GH¢280.28, while ambulances would pay GH¢218.60 annually.
Also, Third Party Property Damage (TPPD) limit had been raised from GH¢1,000 to GH¢2,000, while personal accident benefit which was previously GH¢500 has been increased to GH¢2,000.
Interestingly, the NIC has reduced the insurance tariff for comprehensive policy holders by a percentage point and increased the compensation for accident and personal damages.
It is however feared that the new increases would be translated into higher fares by the transport operators.
The increases are necessary because it is becoming increasingly difficult for insurance companies to pay claims.
Insurance companies quoting for motor insurance are expected to necessarily complete a quotation slip to determine how they arrive at their rates.
The new insurance premiums agreed between the insurance companies and the National Insurance Commission (NIA) has been postponed again.
This is because the transport owners have asked for extension of the implementation date to enable the completion of ongoing discussions.
The new premiums were supposed to have come into effect on July 1, 2010, but the Minister of Transportation, Mike Hammah, called for the suspension of its implementation following an outcry from commercial transport owners.
The transport owners are in talks with the insurance companies to find amicable solution to the new fixtures arguing that the prices are too much. The transport owners are asking for a gradual increase of the premiums.
Under the new tariffs approved by NIC on April 23, to correct the eight-year review interval and close the gap between third party insurers and comprehensive insurers, commercial vehicle owners would pay a 200% increase, while private vehicle owners will pay 150% increase.
Taxis would now pay GH¢232.28, mini buses of up to 20 passengers will pay GH¢268.88 and maxi buses of up to 33 passengers would pay GH¢280.28, while ambulances would pay GH¢218.60 annually.
Also, Third Party Property Damage (TPPD) limit had been raised from GH¢1,000 to GH¢2,000, while personal accident benefit which was previously GH¢500 has been increased to GH¢2,000.
Interestingly, the NIC has reduced the insurance tariff for comprehensive policy holders by a percentage point and increased the compensation for accident and personal damages.
It is however feared that the new increases would be translated into higher fares by the transport operators.
The increases are necessary because it is becoming increasingly difficult for insurance companies to pay claims.
Insurance companies quoting for motor insurance are expected to necessarily complete a quotation slip to determine how they arrive at their rates.
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