NIC rejects new third party insurance rate

The National Insurance Commission (NIC) maintains it will not change the new 800 per cent rate it plans to charge for Third Party Motor Insurance Policy.

This was announced after the crunch meeting between the Commission and stakeholders, the Ghana Insurance Association (GIA) the Ministry of Finance (MoF) on the new rates on Wednesday.

At the close of the meeting, the Ministry of Finance directed the NIC to suspend the implementation of the new rate for a month to allow for intensive consultation with and education of stakeholders.

Insurance Companies are likely to feel the pinch as commercial drivers and private vehicle owners have threatened to boycott insurance policies following the upward review of the Third Party Insurance Policy Rate.

Some insurance companies who spoke with Kapital Business bemoaned the development which they said was going to affect their revenue and targets.

Meanwhile some commercial drivers believed a gradual increase in the new rates would have been the way to go rather than the one time 800 per cent increment.

But Chief Executive Officer of GIA, Atsu Menewuvor, said the increment could not have come at a better time.

He said the challenges in Ghana’s economy had contributed to the intended increment.

The Deputy Commissioner at the NIC, Simon Davor, on his part asked that motorists remain calm as broader consultation on the matter commences.

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