By Kofi Ahovi
The new insurance premiums approved by the National Insurance Commission (NIC) would take off today May 10, 2010.
The new tariffs were supposed to have taken effect last week but were postponed to allow the commission to consult with the transport owners and driver unions before commencement.
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 approved by the National Insurance Commission (NIC) would take off today May 10, 2010.
The new tariffs were supposed to have taken effect last week but were postponed to allow the commission to consult with the transport owners and driver unions before commencement.
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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