NIC beats retreat…put on ice planned 10% motor insurance increase after public outcry

Ghana’s insurance regulator, the National Insurance Commission (NIC) says it has put on ice the planned implementation of a 10% increase in motor insurance premiums which was to take effect on February 1, 2025.

The suspension of the implementation of the 10% increase in premiums was contained in a letter dated January 29, 2025

The Acting Commissioner of the NIC, Mr. Michael K. Andoh, giving reason for the suspension explained that the new motor tariff has been put on ice due to unforeseen circumstances.

He advised the Ghana Insurance Association and the Insurance Brokers Association to price their motor policies using the 2024 approved tariff.

The suspension follows strong opposition from some transport operators and unions in the Ashanti Region, who rejected the 10% increase in motor insurance rates set to take effect on February 1, 2025.

The unions have vowed to resist the implementation and threatened a nationwide strike and fare increments if the government did not reconsider its decision.

In 2024, the National Insurance Commission announced a decision to implement a 10% increase, revised from an initial 15%, effective February 1, 2025.