Dr Kingsley Agyemang calls for urgent review of Motor Insurance premium hike

Dr Kingsley Agyemang, Member of Parliament for Akim Abuakwa South, has urged the National Insurance Commission (NIC) to reconsider its decision to increase motor insurance premiums by 10%. Speaking amidst mounting public criticism, Dr Agyemang described the policy as “ill-timed” and warned of its potential to exacerbate the economic hardships faced by many Ghanaians.

“This policy comes at a time when incomes are stagnant, and the cost of living is rising. It is insensitive to the struggles of ordinary Ghanaians,” he said.

The premium hike, set to take effect on 1 February 2025, has sparked widespread discontent among commercial drivers, transport unions, and consumer advocacy groups. Many have expressed concerns that the increment will lead to higher transport fares, further straining household budgets.

Concerns About Compensation and Public Trust

Dr Agyemang also questioned whether the NIC had considered updating the CAP 2021 guidelines, which outline compensation for motor accident victims. He argued that the lack of alignment between the new premiums and compensation levels could leave accident victims at a disadvantage.

“Fair compensation is critical. If premiums are increasing, the mechanisms for compensating accident victims must also reflect this change,” he cautioned.

The MP expressed concerns about the erosion of public trust in governance and called on the NIC to adopt a more empathetic approach.

“Governance is about trust and empathy. Policies like this erode that trust and deepen economic inequality,” he stated.

Proposals for Reform

Dr Agyemang proposed alternative measures to address the challenges facing the insurance sector without placing additional burdens on citizens. These include reforms to enhance efficiency within the industry and strategies to broaden the customer base.

He also called for the suspension of the policy’s implementation to allow for broader consultations with stakeholders, including transport unions, civil society groups, and consumer advocates.

“The government must suspend the policy and engage the public who are the real third-party to the compulsory third-party motor insurance product. I am yet to see any serious engagement with the public by the government on this crucial insurance hike.,” he urged.

The planned premium hike has drawn criticism from across the country, with many warnings of its potential ripple effects on transport costs and the broader economy. As the implementation date looms, the policy has become a flashpoint for debates about equity, governance, and economic sensitivity in policymaking.

The post Dr Kingsley Agyemang calls for urgent review of Motor Insurance premium hike first appeared on 3News.

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