The Ghana Insurers Association (GIA) has defended its proposal for a 10% increase in motor insurance premiums, attributing the move to the rising cost of business operations.
The planned increment, which was initially set to take effect on February 1, was put on hold by the National Insurance Commission (NIC). However, industry stakeholders argue that the adjustment is essential to maintain operations and improve service delivery.
Dr. Kingsley Kwesi Kwabahson, Chief Executive of GIA, reaffirmed the association’s commitment to providing quality service but cautioned that this would be difficult without adjusting premiums to reflect the benefits offered to customers.
“We are not just talking about a 10% increase. We have also raised the third-party property damage limit by 33.33%, increasing it from GH₵6,000 to GH₵8,000. This aligns with our goal of enhancing service delivery,” Dr. Kwabahson explained.
He stressed that a corresponding adjustment in charges is necessary to sustain these improvements, urging the public to focus on the enhanced benefits rather than the price hike.
Despite public concerns over the proposed increment, Dr. Kwabahson maintains that the adjustment is crucial for the sustainability of the insurance sector and ensuring adequate compensation for policyholders.
SOURCE: Joy Business
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