NIC to clamp down on uninsured vehicles - 30% still uninsured
The National Insurance Commission (NIC) plans to initiate a programme to upgrade its database and also equip the police with modern devices to help clamp down on vehicles that are not properly insured, the Commissioner of Insurance, Mr Justice Yaw Ofori, has said.
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He observed that about 30 per cent of all the vehicles on the country’s roads were not properly insured because there were presently unavailable modern systems to monitor all the vehicles.
Mr Ofori, who was speaking at the maiden National General Insurance Conference on Thursday, October 19 in Accra, said the NIC was rolling out the programme in partnership with the Ghana Police Service and other stakeholders.
He explained that under the programme, the database of the NIC was expected to be upgraded to properly insure all vehicles in the country.
To check fake stickers, he said the police would be provided with modern devices to check whether a vehicle had been insured properly or not.
“This will also include checking if a vehicle’s registration or chassis number is in the database of the commission,” he said, noting that the NIC was in the process of setting out the modalities of the programme.
“A few years ago, the NIC issued a statement to the general public about the operations of an international insurance company that was issuing fake model insurance stickers to the unsuspecting public and most of you are also aware that such anomaly is on the rise in the country,” he said.
To address such anomaly, he emphasised that the NIC needed some modern systems to monitor the legal requirement of having to insure all vehicles in the country.
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Expedite actions on Insurance Bill
The commissioner, in an interview with the Graphic Business after the opening of the conference, also called on the government to support the passage of the Insurance Bill to expedite the revival of the insurance industry.
He said the bill, when passed, would, among other things, help increase the insurance penetration rate which, according to him, currently stood below two per cent.
The bill, he added, was aimed at protecting both insurance companies and subscribers, improving the efficiency and sustainability of insurance service delivery and helping to address the challenges facing the industry.
“Some work has been done on the bill, which includes modernisation and correction, and, therefore, we need to push for Parliament to pass the bill into law,” he said.
Mr Ofori said the new insurance bill would also allow the NIC and other stakeholders to collaborate effectively to develop and expand the industry, adding, “This will help us put in place the necessary measures to increase the penetration rate.”
To increase the penetration rate, he said the NIC was working on measures that would help change the negative mindset people had about insurance.
“We want people to see insurance as a necessary and important aspect of their lives and not just something that the law demands. Also, we want to make sure that penetration is high by targeting a double digit by the end of the next three to four years. Our focus will also be on the informal sector, which includes low-income earners,” he said.
He advised insurance companies to comply with the NIC’s guidelines on claim payment to make that dream a reality.
“The NIC will not hesitate to crack the whip on companies that fail to adhere to the guidelines,’’ he said.
Contribution of insurance industry
A representative from the Finance Ministry, Ms Felicia Ashley, said the contribution of the insurance industry towards the development of the country’s economy could not be underestimated.
According to her, the industry has been a vehicle for mobilisation of the much-needed funds for long-term investment and national development.
“It has also provided employment opportunities and more importantly, its traditional role of risk management has provided financial security to businesses and families.
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“The industry’s quest to maintain the highest professional standards and avoid negative and harmful practices is highly acknowledged,” Ms Ashley, who was representing the Deputy Finance Minister, Mr Kwaku Kwarteng, said.