The Ghana Insurers Association (GIA) on Friday said benefits payable under the various sections of the motor policy had to be reviewed upwards to provide realistic protection to policy holders and the public in line with current trends.
It explained that personal accident cover for policy holders, drivers and their mates had been increased from GH¢500 to GH¢2,000 per person, an increase of 400 per cent while third party property damage limit had been increased from GH¢1,000 to GH¢2,000 an increase of 100 per cent.
This was contained in a statement issued in Accra and signed by Mr. Astu Menyawovor, Chief Executive Officer of GIA, in reaction to recent
developments and concerns of the public following introduction of the revised motor insurance tariffs approved by National Insurance Commission
(NIC), regulatory body in the insurance industry in Ghana.
It said there was the need to revise the old tariffs which had been applied by its members since 2002, because the average cost of claims had significantly increased as a result of increases in the cost of vehicle spare parts, high compensations awarded by the courts for injury and death cases.
"Insurers have to meet specific statutory obligations including contributions to National Road Safety Fund and National Health Insurance
Scheme (NHIS)", it added.
The statement said the industry contributed to the Motor Compensation Fund originally established as an industry initiative to compensate victims of motor accidents caused by uninsured vehicles and hit and run drivers.
In addition, the industry supports various institutions including Ghana Police Service with breathalyzers, speed guns and funds to support their operations.
The statement said GIA was committed to ensuring that its members operated within laws of Ghana and would continue to work with all
stakeholders to ensure a vibrant industry.
The GIA pledged its support to the committee proposed by NIC to address issues arising from the introduction of revised motor tariffs, and expressed the hope that all stakeholders would engage in constructive dialogue, to develop a financially viable and responsive insurance industry to support the country's development.