Insurers to meet over premium hikes suspension
Insurance companies are claiming they have not received any official communication to suspend an 800% premium hikes to drivers.
Chief Executives of the companies are therefore set to hold an emergency meeting later Wednesday to decide their next line of action.
The CEO’s are expected to engage officials of the National Insurance Commission, the regulator, to understand the latest action after it had had approved the increase.
They believe the decision to suspend the hikes may be politically motivated.
Announcement of the hikes on Monday met with stiff resistance from some driver associations.
The Chairman of the Ghana Road Transport Coordinating Council GTRCC Alhaji Aliu Baba threatened that drivers will begin to form their own insurance companies.
He did not understand why the insurance companies will announce such a hefty increase at a time when they are supposed to be paying for seat belts, road worthiness, fuel etc.
He described the hikes as "barbaric" and quite disrespectful because the drivers who are stakeholders were not consulted.
Deputy Finance Minister, Mona Quartey, told Joy Business on Tuesday she was happy with the feedback from the drivers about the premium increases.
According to her, the eight folds increase in the premiums could have been done gradually over a period of time.
“We haven’t formally called for review but we [Ministry] have called the industry regulator and they will come to us. We will sit down and discuss how best to perhaps make this a little easier”, she said.
The Minister said she agrees that insurance premiums must go up, “but how they go up is something that we will discuss to make it easier”.