Barring any changes in strategy or responses from insurers, the road transport owners are set to embark on a nationwide strike on Monday February 9 to protest a 500 per cent increase in insurance premiums.
At a press conference Tuesday, the Ghana Private Road Transport Union GPRTU) and the Ghana Road Transport Coordinating Council (GRTCC) said their commercial drivers will not work next week if the decision is not reversed.
“We are giving GIA., NIC. and the Ministry of Transport, two days within which to reduce the motor insurance premium rate to the agreed percentage of between 240%-260%" the transporters said.
There was a transportation chaos in urban areas after drivers boycotted work in July 2015.
Commercial drivers resisted plans by the Driver and Vehicle Licensing Authority (DVLA) to insist on seat belts for all passengers in buses and taxis.
The latest contention for the drivers is third party insurance which is compulsory for all vehicle owners.
The Compulsory Third Party Motor Insurance Act 1958 requires that drivers take insurance to protect and compensate passengers and pedestrians victimized in an accident.
In June 2015, the National Insurance Commission had attempted to shoot up premiums by 800%.
The move sparked outrage from motorists. After negotiations involving government, insurance premiums were pegged between 240% to 260%, the operators said.
It was also agreed that the implementation of the increase will be gradual. But the drivers say they were shocked to learn, third party insurance had skyrocketed by 500 per cent. The transport owners say this a “needless act of bad faith.”
The road transport owners also are incensed that compensation package for paying a 500 per cent premium is GH¢2,000.
They say even at the agreed 240-260% increase in premium, the compensation was pegged at GH¢1,000.
For the drivers, GH¢2,000 for 500 per cent increase in premiums is a rip-of.
Insurance premiums have become a contentious issue for the industry regulator, National Insurance Commission (NIC).
The Commission says premiums were last increased more than five years ago.
They explained that the marked depreciation in the Ghana cedi has been hurting their ability to pay claims.
Hence in June 2015, the NIC announced that annual premium for the least motor insurance policy -- third party insurance – was to shoot up from GH¢70 to GH¢471 for private cars.
The same insurance for commercial taxis was priced at GH¢576 per annum
Third party premium for mini-buses commonly called ‘Trotro’ has also been set at GH¢586 with motorcycles required to pay GH¢256 for an insurance Clients resisted the move and drivers threatened to form their own insurance company. They have once again repeated their threat
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