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11th May, 2010
Increase In Motor Insurance Premium Suspended Indefinitely.
The 50 per cent increase in motor insurance premium instituted by insurance companies has been suspended indefinitely.
A technical committee has been set up by the Ministry of Transport to broaden the Scope of consultation in order to arrive at an acceptable premium by all stakeholders.
This was the outcome of a meeting convened by MP Mike Hannah, Minister of Transport, following threats by commercial transport owners to unilaterally increase their fares if the insurance companies went ahead with the proposed increase which was to take effect yesterday.
Disclosing this to the “Times”, Mr. Kweku Sersah – Johnson, Public Affairs Officer of the Ministry of Transport said “the ministry was unaware of the development, but had to intervene when the arbitrary increase in public transport fares became an issue”.
He said the Minister asked the stakeholders to deliberate further on the issue and decide on a consensus premium reflective would be of the current economic trend and which satisfactory to all.
Mr. Sersah-Johnson said the Minister further asked the insurance companies to resolve to spread the purported increase over a period of time to mitigate its impact on transport owners.
He said, the Minister also asked the insurance companies to look inwardly and plug loopholes which might have led to an increased in the budget for motor insurance.
Present at the meeting were the Minister and his deputy, together with other officials of the Ministry, the Acting Commissioner of the National Insurance Commission and a host of officers of Insurance companies, the chairman of the Ghana Road Transport Coordinating Council and his team and a representative of the Consumer Association of Ghana.
A technical committee has been set up by the Ministry of Transport to broaden the Scope of consultation in order to arrive at an acceptable premium by all stakeholders.
This was the outcome of a meeting convened by MP Mike Hannah, Minister of Transport, following threats by commercial transport owners to unilaterally increase their fares if the insurance companies went ahead with the proposed increase which was to take effect yesterday.
Disclosing this to the “Times”, Mr. Kweku Sersah – Johnson, Public Affairs Officer of the Ministry of Transport said “the ministry was unaware of the development, but had to intervene when the arbitrary increase in public transport fares became an issue”.
He said the Minister asked the stakeholders to deliberate further on the issue and decide on a consensus premium reflective would be of the current economic trend and which satisfactory to all.
Mr. Sersah-Johnson said the Minister further asked the insurance companies to resolve to spread the purported increase over a period of time to mitigate its impact on transport owners.
He said, the Minister also asked the insurance companies to look inwardly and plug loopholes which might have led to an increased in the budget for motor insurance.
Present at the meeting were the Minister and his deputy, together with other officials of the Ministry, the Acting Commissioner of the National Insurance Commission and a host of officers of Insurance companies, the chairman of the Ghana Road Transport Coordinating Council and his team and a representative of the Consumer Association of Ghana.
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