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Business News of Wednesday, 26 February 2020

Source: www.ghanaweb.com

Motor Insurance Database policy exceeds 100,000 mark - NIC


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The Motor Insurance Database (MID) policy which was instituted by the National Insurance Commission (NIC) in January 2020 to curb the menace of fake insurance plying on roads has exceeded the 100,000 mark just in 7 weeks.

This follows an initial 78,000 newly insured vehicles as at February 17, 2020 recorded by the NIC since it implemented the MID policy.

This was disclosed by the Head of Supervision at the NIC, Seth Eshun during a training seminar for personnel of the Police Motor Traffic and Transport Division (MTTD) drawn from the Eastern and Volta Regional offices.

According to the Supervisor who took the personnel through an overview of the database and how the policy is to be enforced by the police, he stated that “as of the evening of Monday, February 24, 2020, the database has recorded the insurance of over 100,000 vehicles.”

He added that this development is an indication that the general public and the insurance industry are beginning to understand the benefits of digitizing the insurance sector to rid the system of fraudsters.

The NIC is on a nationwide training of trainers programme and the exercise is expected to be replicated in all the remaining regions for purposes of enforcement by the Police MTTD.

Earlier on January 20, 2020 the NIC issued a directive to all insurance companies to cancel the issuance of manual stickers until they signed up to the new Motor Insurance Database.

The move by the commission was to get rid of fake motor insurance stickers that are plying the roads and ensure the safety of lives and property.

Commissioner for Insurance, Justice Yaw Ofori, had earlier disclosed that insurance companies in the country are losing approximately GH¢390 million of gross revenue annually to fraudsters who issue fake insurance stickers to unsuspecting vehicle owners.

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