NIC Suspends 10% Motor Insurance Premium Increase
U-Turn: NIC Suspends Motor Insurance Increase After Protests
- NIC has suspended the implementation of a planned 10% increase in motor insurance premiums
- This decision follows strong opposition from transport operators and unions
- The unions threatened a nationwide strike and fare increases if the government proceeded with the hike.
The National Insurance Commission (NIC) has suspended the implementation of a planned 10% increase in motor insurance premiums.
Acting Commissioner of the Insurance Commission, Michael K. Andoh, confirmed the suspension in a letter dated January 29, 2025, citing unforeseen circumstances.
He directed the Ghana Insurance Association and the Insurance Brokers Association to continue using the 2024 approved tariff for motor policies.
This decision follows strong opposition from transport operators and unions in the Ashanti Region, who had rejected the 10% increase, initially set to take effect on February 1, 2025.
The unions threatened a nationwide strike and fare increases if the government proceeded with the hike.
Transport unions argued that the increase would negatively impact their operations, placing additional financial burdens on drivers and vehicle owners already struggling with fluctuating fuel prices, high spare part costs, and poor road conditions.
A representative of the Ghana Private Road Transport Union reiterated their stance, stating that drivers would take action if the increase was implemented.
