By Kofi Ahovi
The National Insurance Commission (NIC) together with the insurance companies and transport owners have agreed on a 30% increase in new motor insurance premiums. The increase supersedes the old figures announced in April this year.
The approved premiums would take effect from the beginning of August this year, but would be reviewed upwards early next year.
The insurance companies are expected to come out with their new prices this week.
Under the old tariffs approved by NIC in April this year, to correct the eight-year review interval and close the gap between third party insurers and comprehensive insurers, commercial vehicle owners were supposed to pay a 200% increase, while private vehicle owners would have paid 150% increase.
The new insurance premiums agreed between the insurance companies and the NIC were postponed twice, first by to a directive from the Minister of Transport and secondly due to a request from transport owners.
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 National Insurance Commission (NIC) together with the insurance companies and transport owners have agreed on a 30% increase in new motor insurance premiums. The increase supersedes the old figures announced in April this year.
The approved premiums would take effect from the beginning of August this year, but would be reviewed upwards early next year.
The insurance companies are expected to come out with their new prices this week.
Under the old tariffs approved by NIC in April this year, to correct the eight-year review interval and close the gap between third party insurers and comprehensive insurers, commercial vehicle owners were supposed to pay a 200% increase, while private vehicle owners would have paid 150% increase.
The new insurance premiums agreed between the insurance companies and the NIC were postponed twice, first by to a directive from the Minister of Transport and secondly due to a request from transport owners.
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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