This week’s write-up seeks to trigger the alert button on the phenomenon for the insuring public to beware of the activities of some miscreants perpetrating this crime and ways by which various stakeholders could help minimise the rate.

A classic scenario

The unsuspecting trotro driver

A trotro driver crashed his car into another motorist’s brand new Nissan Patrol thus damaging the bumper and one tail-light. This trotro driver pleaded with the Nissan patrol driver / owner to have the damage fixed instead of falling on his insurance to do so. In spite of the latter’s insistence on doing the right thing by having the matter reported to the police, the offending driver went on his knees to have it fixed at his own cost.

Apparently with some past experience in this regard, the Nissan patrol owner still went ahead to report the accident to the police. He proceeded to the insurance company after having stealthily ripped off the sticker on the trotro bus.

Fake Insurance detected

The Nissan Patrol driver, guided by his instincts, approached the insurance company to check the authenticity of the insurance sticker. Lo and behold, it was immediately detected that the sticker was fake! As fate would have it, the insurance company did not even have any records on the said vehicle in their system. Checks later revealed that the insurance was sold to the said trotro driver by an unknown agent of the company.

Related Developments

Not too long ago, a 39-year-old woman was said to have been arrested in the Brong Ahafo Region for allegedly issuing fake insurance stickers to drivers in and around Techiman.

Her arrest by the Motor Traffic and Transport Department (MTTD) at the time was masterminded by some suspecting drivers who disclosed that they believed the lady in question sold fake stickers to them.

These drivers hinted that some persons who have presented themselves as agents of some insurance companies were likely to be the perpetrators of this phenomenon, while others believed that they (the perpetrators) may not necessarily be agents of any insurance company at all but mere crooks – ‘goro boys and girls’!

The modus operandi

The modus operandi of these fraudsters include but not limited to duplicating the original stickers and selling them to the drivers and vehicle owners who agree to purchase the cheap stickers!

They would usually issue drivers with the fake stickers at a premium far lower than the premiums on the genuine stickers as against what is offered by credibly registered insurance agents or staff of the insurance companies.

They often convince unsuspecting drivers about the cheaper alternatives available which, in any case, serve the ‘same purpose’ – i.e to satisfy the police!

Public education still needed

In spite of the continuous public educational programmes by the NIC and the Ghana Insurers Association (GIA), many motorists and vehicle owners are still falling victim to these fraudulent activities.  

What should clients do?

It is important to note that whenever one purchases a motor insurance policy from an agent, he or she should do due diligence by contacting the particular insurance company’s head office to confirm the authenticity of the documents and sticker.

Similarly, clients purchasing motor insurance should not be in a hurry to let anybody take advantage of them. They can even call the branch, agency or head offices of their choice insurance company requesting their service in this regard. I am of a firm conviction that almost all insurance companies would dispatch their marketing staff to attend to them.

The insuring public should also note that purchasing insurance stickers from ‘road-side vendors’ is similar to buying an electronic gadget on the streets without first testing it!

It is important for motor insurance clients to do the following after purchasing motor insurance policies:

•    insist on the insurance certificate which states the insurance policy number with details about the vehicle and the vehicle owner / driver;

•    in lieu of the policy certificate, insist on obtaining a cover note or a premium payment receipt that shows the amount paid to the Agent or sales person and;

•    ensure that the motor insurance sticker is fixed on the windscreen.

The ECOWAS brown card

This is another form of motor insurance which fraudsters are taking advantage of to defraud unsuspecting persons.

The growing use of fictitious cards by some members of the business community owing to the quest for cheaper premiums is equally worrying.

It is worthy to note that the ECOWAS Brown Card is in the form of a single leaflet certificate, with improved security features. Some of these features include a hologram and invisible ink print (i.e., only visible under an ultra violet light with a ‘on-spot-check’ watermark with a two-colour secured fluorescent fiber inlaid can be found on the certificate.

Indeed, the ECOWAS Brown Card which is basically a territorial extension of the local insurance cover implies that it cannot be issued in isolation of an underlying local motor insurance policy offered by all non-life insurance companies in Ghana.

What can the NIC do?

The National Insurance Commission (NIC) can also take a cue from the Driver and Vehicle and Licencing Authority (DVLA) which, in 2014, introduced the electronic roadworthy certificate with a detectable barcode. The regulatory body could start considering a possible replication of this control measure and collaborate with the Ghana Police in its enforcement through occasional random checks by a formidably constituted task force.

Just as the DVLA’s system supported easy detection by the police making many more people more cautious of dealing with any unauthorised officers, I believe many motorists are likely to be caught in the fake motor insurance web if the same system is employed. Indeed, since no one wants to be delayed or embarrassed on the roads, many would do proper due diligence and desist from dealing with ‘goro boys and girls’, especially at the various DVLA offices which are a key distribution channel for motor insurance policies. With this, I believe the phenomenon could be largely minimised if not completely stamped out!—GB

Until next week, “This is Insurance from the eyes of my mind.”