Dr. Kingsley Agyemang, Member of Parliament for Abuakwa South, is calling on President John Dramani Mahama to intervene in a move that could affect thousands of motorists in Ghana. The National Insurance Commission (NIC) has announced a planned 10% increase in motor insurance rates, set to take effect on February 1, 2025.
The NIC claims that the decision was made after “extensive deliberations and engagements with key stakeholders” and is a reduction from the initially proposed 15% increase. However, Dr. Agyemang, an insurance expert, strongly opposes the move, arguing that it will have a negative impact on both the insurance industry and motorists.
Dr. Agyemang’s concerns are not unfounded. A similar increase in motor insurance premiums, which took effect in January 2024, resulted in a 30% hike in premiums. This increase was largely due to a 21% Value Added Tax (VAT) imposed on non-life products. Dr. Agyemang fears that the proposed 10% increase will only exacerbate the situation, making motor insurance unaffordable for many Ghanaians.
The MP is urging President Mahama to direct the NIC to halt the planned increase, citing the potential negative impact on the insurance industry and motorists. As the debate continues, one thing is clear: the outcome will have far-reaching consequences for thousands of Ghanaian motorists.
Ruth Abla ADJORLOLO
