Tensions are rising across Ghana as commercial drivers express outrage over the National Insurance Commission's (NIC) decision to increase motor insurance premiums by 10%, effective February 1, 2025.
The policy announced amidst widespread economic challenges, has sparked criticism from transport unions, concerned citizens, and policymakers, who warn of its dire implications for struggling households and the national economy.
Dr. Kingsley Agyemang, Member of Parliament for Akim Abuakwa South, has joined the growing opposition to the directive, describing it as “ill-timed and detrimental.” Speaking in an exclusive interview, Dr. Agyemang highlighted the severe economic pressure the increment would place on ordinary Ghanaians.
“Commercial drivers are already struggling to make ends meet in an economy marked by rising fuel prices, stagnant incomes, and escalating transportation costs,” he said. “This increase will inevitably force drivers to raise fares, which will burden passengers, market traders, and schoolchildren. The ripple effects will be felt across every sector of society.”
Concerns Over Counterfeit Insurance
Dr. Agyemang also raised alarms about a potential rise in counterfeit insurance practices if the directive is implemented without broader consultation. He noted that higher premiums could drive financially strained vehicle owners to seek illegal alternatives, thereby undermining public safety and confidence in the insurance sector.
“When legitimate insurance becomes unaffordable, people turn to illegal options, which not only compromise their safety but also expose others to unnecessary risks on the roads,” he warned.
Calls for Broader Consultation
The MP called on the NIC and the Ministry of Finance to suspend the implementation of the premium hike and to engage with key stakeholders, including transport unions, civil society organizations, and industry players, to explore alternative measures. He also stressed the need for revising the CAP 2021 guidelines, which govern compensation for motor accident victims, to ensure fairness in the context of the proposed premium adjustment.
“The CAP 2021 framework must be revisited to align compensation with the realities of the new premium structure. Without this, accident victims could suffer from inequities that will only exacerbate the hardships faced by Ghanaians,” he argued.
Ripple Effects on Society
Dr. Agyemang emphasized the broader consequences of the premium hike, warning that it would exacerbate existing economic inequalities and erode public trust in governance. He called on policymakers to demonstrate empathy and sensitivity in addressing the challenges facing the population.
“From market traders transporting goods to students commuting to school, every Ghanaian will feel the impact of this decision. Good governance demands that we protect the most vulnerable, especially in times of economic hardship,” he said.
