NIC, GIA revise upwards motor insurance tariff effective January 1, 2024
In a decisive move aimed at bolstering the regulatory framework of Ghana’s insurance sector, the National Insurance Commission (NIC) has mandated a revised minimum tariff for Third Party Motor Insurance, slated for implementation from January 1, 2024.
The directive, backed by the Ghana Insurers Association (GIA), underscores a broader agenda to fortify the financial robustness and operational transparency within the industry.
Central to the NIC’s directive is the imposition of a uniform minimum tariff of pre and post-2020 premiums. Such a consolidation not only simplifies the pricing mechanism but also ushers in a level of standardization previously absent in the sector.
Moreover, a notable departure from previous norms is the scrapping of capacity implications set at 3,000 and 5,000, signaling a recalibration in premium calculations. This strategic move by the GIA serves as a testament to the industry’s commitment to fostering a more equitable and streamlined pricing architecture.
“The GIA encourages insurers to strictly comply with these minimum rates as it will stand with NIC on the imposition of penalties and fines for non-compliance.
“The Board kindly advise that the information herein be shared with individual clients of respective companies, to ensure seamless implementation of these new rates. This is necessary to improve the financial position of insurance companies for prompt payment of legitimate claims,” read parts of the statement.
See below the revised premiums: