NIC, MTTD to clamp down on fake insurance

The National Insurance Commission (NIC) together with the Motor Traffic and Transport Department (MTTD) of the Ghana Police Service, will soon commence a nationwide exercise to enforce the Motor Insurance Database (MID) introduced by the NIC in January 2020.

A joint task force will be on the road to inspect motor insurance, to reduce the number of uninsured vehicles on our roads.

The NIC has thus advised motorists to ensure they have valid motor insurances to avoid a brush with the law, Justice Yaw Ofori, Commissioner of Insurance told the Ghana News Agency that already, some unscrupulous persons allegedly dealing in fake insurance stickers are currently facing prosecution.

He said the Commission had completed a nationwide Training of Trainers programme on the MID for some 400 personnel of the MTTD.

The MID comes with electronic stickers with QR Codes and other security features and makes it possible for the purchasers of motor insurance to receive real-time SMS, confirming the authenticity of their motor insurance policy.

Similarly, Motorists as well as the general public, are also able to utilize a short code (*920*57#) to authenticate the validity of their insurance policies.

Mr. Ofori said about 1,000 Gota phones (hand-held devices) are currently being configured with the necessary security features to aid the police in detecting the validity of motor insurance policies.

Mr Ofori said the system has already recorded over 554,000 electronic stickers, so far, indicating the growing confidence in the system, as most Motorists now buy valid insurances with approved entities.

All old policies issued before January 20, 2020, have been uploaded onto the database, and their new electronic stickers will be issued upon renewal.

He said the Motor Insurance Database would facilitate the authentication of the insurance of vehicles plying our roads thereby securing the protection of policyholders, motorists, road users as well as other third parties who may suffer from the negligence of motorists.

Mr Ofori said the MID will also make insurance companies more financially solid and liquid to pay genuine claims promptly and adequately.

Commenting on the use of motorcycles for commercial purposes, Mr Ofori said the Commission has advised regulated insurance entities not to insure motorcycles and tricycles used to carry fare-paying passengers.

He said the Laws of the country does not permit the carriage of fare-paying passengers by these cycles.

“We have to abide by the Law as clearly stipulated in Regulation 128 of the Road Traffic Regulations, 2012 (Legislative Instrument 2180),” he cautioned.

The insurance boss admonished, particularly passengers, to ensure that before they board any commercial vehicle or accept lifts from anybody, to check if the vehicle in question has valid insurance by dialing the MID short code *920*57#, to ensure they are adequately secured.