Automatic Brown Card for motorists?
The Council of the Bureau for the ECOWAS Brown Card Insurance Scheme recently organised its Zonal conference, in Accra, Ghana, on the theme “Trans-border Claims Management.” The conference was attended by representatives of the various stakeholders from all West African countries.
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The conference reiterated the commitment of member states and all relevant stakeholders to ensure the effective implementation of the ECOWAS Brown Card scheme, which was introduced in 1982, following the signing of the ECOWAS Brown Card Protocol by the ECOWAS Heads of State.
Objective of the Scheme
The primary objective of the scheme is to facilitate the free movement of people, goods and services, across the subregion. Moreover, the scheme is expected to facilitate prompt and fair compensation payment to victims of motor accidents caused by a non-citizen motorist, who is from a member country. The ECOWAS Brown Card is a territorial extension of the motor third party liability insurance, which enables motorists to travel freely within the ECOWAS Brown Card region.
It is a common system for the settlement of claims arising from international motor vehicular accidents. The initiative is expected to enhance trade harmony among member countries; particularly with regard to the laws and regulations on motor accident liability.
Automatic Brown Card for Motor Policyholders
The highlight of the conference, which was a declaration by the Chairman of the Ghana Bureau, Mr Kwame Ofori, that by June 2016 Ghana would be the first Anglophone country to join the Francophone countries to issue Brown Card automatically to all motor insurance policyholders, was a refreshing one. Indeed, it was revealing to learn that the francophone countries in the subregion had blazed the trail in this regard.
An Experience
Travelling across the West African subregion in commercial and own vehicles is a regular feature for most business folks in the subregion.
A few years ago, just around a festive occasion, I missed a flight for a scheduled business trip to Lagos, because my booking was done late. Besides, at the time, the traffic on the destination was quite high. I was completely stunned, as I wondered how I could be in Lagos on time for the scheduled appointment.
But as often said in our traditional parlance, ‘whatever alcohol is to be used for, ordinary water may equally be used, albeit an improvised tasteless substitute.’ Now struck with the reality of having missed a flight, I immediately jumped onto a Lagos-bound Peugeot car.
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As we got to the Togo end of the Aflao border, security personnel, as part of their inspection processes, requested our driver to produce his ECOWAS Brown Card for inspection before we could proceed with our journey through Togo, Benin and eventually to Nigeria. As we journeyed on, I reflected on this encounter and was encouraged that the subregion, after all, had come of age and was poised to see through successful trade partnerships and integration processes, through the ECOWAS Brown Card Scheme.
What it does
The ECOWAS Brown Card Scheme was established to promote vehicular movement of persons, goods and services across national boundaries of ECOWAS member states.
Instructively, this also plays an important role in the entire African integration process, as it promotes borderless trade amongst member states. The ECOWAS Brown Card is synonymous with the Green Card used in the USA and Europe; the Pink Card of the Middle East; and the Yellow Card of East Africa.
The scheme was one of the foremost protocols upon the birth of ECOWAS some 40 years ago. Meanwhile, since 1988, Ghana has operated a local bureau of the scheme to ensure an effective implementation.
Chief among the stakeholders of the scheme include the Ghana Revenue Authority (GRA), Ghana Immigration Service (GIS), the Motor Traffic and Transport Department (MTTD) of the Ghana Police Service, Freight Forwarders, Insurers and the business community, particularly, those whose operations are mainly within the subregion. A great deal of collaboration is, therefore, required of these key stakeholders to ensure success.
Features of the new Brown Card
In this regard, the bureau recently introduced a new ECOWAS Brown Card in the form of certificate, with improved security features in order to curb the use of fictitious Brown Cards.
The new Brown Card is in a single leaflet format, with improved security features like hologram and invisible ink print (i.e., only visible under an ultra violet light. It also has ‘on-spot-check’ watermark, with a two-colour secured fluorescent fibre inlaid.
Typically, the ECOWAS Brown Card Insurance covers Third Party Liability for injury, death and property damage caused by visiting motorists from other ECOWAS member states.
The Scheme guarantees a motor insurance cover which leads to the realisation of the free movement objective of ECOWAS. Indeed, the card is basically a territorial extension of the local insurance cover; thus, the Brown Card motor certificate cannot be issued in isolation of an underlying local motor insurance policy.
Generally, intending travelers across the ECOWAS subregion for the purpose of business are required to contact their local insurers for their Brown Card certificates.
Challenges
Apart from the challenge of the growing use of fictitious cards by sections of the business community owing to the difficulty in procuring the card, perhaps the biggest challenge is in cross-border claims payment.
The Ghana Bureau of the Scheme, which is made up of non-life insurance companies licensed to underwrite motor insurance business in Ghana, is saddled with several challenges, with the issues of fictitious certificates and cross-border claims settlement being dominant.
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For instance, if an Ivorian-registered vehicle is involved in an accident in Ghana, the processes in establishing the authenticity of the claim before settlement, usually takes a very long time.
Indeed, it is reported that as a result of this phenomenon, some claims have been outstanding for over 10 years, defeating the very essence of the scheme; thus, member countries need to work diligently around this year’s theme.
The Way Forward
The Ghana Bureau of the ECOWAS Brown Card Scheme must intensify stakeholder engagements in order to promote greater collaboration.
Thus, stakeholders must not only be given regular capacity building and updates about the Scheme, but also reminded of their individual and joint responsibilities at ensuring an effective scheme for the benefit of the Ghana and the subregion at large.
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The adoption of the Scheme by ECOWAS member states, in January 2015, is a step in the right direction, as this will ensure PROMPT and fair compensation payment to victims of motor accidents caused by non-citizen motorists especially in the refreshing face of the introduction of automatic cover for all motorists.
Meanwhile, the Scheme must consider setting up local joint taskforces in member countries to curb the growing phenomenon of fictitious Brown Cards.
The Taskforce should be composed of representatives from the various key stakeholder groups. If this is not done, chances are that automatic covers on all motor policies could also be faked and circulated by some unscrupulous elements of society.
Until next week, “This is Insurance from the eyes of my mind.”
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