The Member of Parliament for Abuakwa South, Dr. Kingsley Agyeman, has appealed to President John Dramani Mahama to intervene and stop the National Insurance Commission (NIC) from implementing a planned 10% increase in motor insurance premiums.
The NIC, in a letter signed by Acting Commissioner Michael Andoh, announced that the revised 10% hike—down from an initial proposal of 15%—will take effect on February 1, 2025. The decision follows extensive consultations with stakeholders.
However, Dr. Agyeman has voiced strong opposition, warning that the increase will place a heavy burden on vehicle owners and the broader public.
“I call on His Excellency, President Mahama, to urgently intervene. This increment, though reduced to 10%, will create significant hardship for ordinary Ghanaians. The NIC must be directed to hold further consultations before proceeding. This increase is not trivial; it will have widespread repercussions,” Dr. Agyeman said.
Insufficient Consultation and Industry Concerns
Dr. Agyeman criticized the NIC for what he described as inadequate engagement with stakeholders, arguing that the decision could worsen challenges within the insurance industry.
“The insurance sector is already grappling with high operational and management costs, particularly in general insurance. This increase raises questions about whether capped claims under current insurance laws will also be adjusted to reflect the change,” he added.
He warned that the hike might have unintended consequences, such as prompting motorists to switch to less comprehensive third-party insurance policies, which could ultimately reduce overall revenue for insurers.
Impact on the Public and Commercial Drivers
Dr. Agyeman emphasized the potential ripple effects on vehicle owners, passengers, and vulnerable communities, who would bear the brunt of rising costs.
His concerns were echoed by commercial drivers, who have raised alarm over the financial strain. James Ngah, a taxi driver at the University of Ghana taxi rank, lamented the challenges already faced by drivers, including high spare part costs, fuel prices, and competition from ride-hailing platforms.
“This increase will only make things worse. Our earnings are already declining, and higher insurance premiums will push us further down,” Ngah told JoyNews.
Future Uncertain
As the February 1 implementation date approaches, uncertainty looms over whether the NIC will proceed with the rate hike. The debate has intensified, with calls for the government to step in and ensure that the interests of Ghanaians are prioritized over regulatory adjustments.
SOURCE: Carlos A. Calony
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