Every vehicle on a Ghanaian road must be insured against harm to other people. That is the law under the Motor Vehicles (Third Party Insurance) Act, 1958, it is what the police check, and it is all most drivers in Accra buy.
Third party, or comprehensive
| Cover | Pays for |
|---|---|
| Third party (the legal minimum) | Death, injury and damage you cause to other people and their property. Nothing for your own car |
| Third party, fire and theft | The above, plus your car if it burns or is stolen |
| Comprehensive | The above, plus damage to your own car in an accident, whoever was at fault |
Third party is the cheapest, and it leaves you paying for every dent and write-off yourself. A car on a loan or hire purchase will almost always be required by the lender to carry comprehensive cover.
Comprehensive policies differ in three things worth asking about:
- The excess - the first part of any claim you pay. A lower premium often hides a higher excess.
- The sum insured. If you insure a car for more than it is worth you pay more and still only receive its value; for less, a claim is cut in proportion.
- No claims discount - what you lose by claiming for a small scratch. Sometimes paying yourself is cheaper.
The sticker, and checking it is real
Since January 2020 every motor policy is recorded on the National Insurance Commission’s Motor Insurance Database, and the paper stickers were replaced by electronic ones carrying a QR code. Fake stickers are still sold, mostly at lorry stations and by roadside “agents”.
To check a sticker:
- Dial *920*57# and follow the prompts. The NIC launched the code with the database, free on every network; if it no longer answers, call the Commission.
- Scan the QR code on the sticker with any phone.
Check before you pay for a renewal, before you buy a used car, and before you hire a car or driver. A fake sticker means no cover: if that car injures someone, the driver is personally liable.
— Checking an insurer is licensed
Pay the insurer, not a middleman
The Insurance Act forbids insurance on credit, and a person who has not paid has no cover. Buy from an insurer or a broker the NIC licenses, pay to the company’s own account or MoMo merchant, and keep the receipt and the policy schedule in the car with the roadworthy certificate.
After a crash
- Stop, and make the scene safe. Leaving the scene of an accident in which someone is hurt is an offence.
- Report it to the police (the MTTD). You will need a police report for almost any claim involving another party or an injury.
- Take photographs of both vehicles, number plates, the road, and the other driver’s sticker.
- Swap details: name, phone, insurer and policy number.
- Tell your insurer in writing straight away, even if you think the other driver will pay. Most policies require prompt notice, and late notice is a common reason claims are refused.
- Do not admit fault or agree to pay on the spot. Your insurer deals with liability.
— Emergency numbers — Making a claim
If the other driver had no insurance
The Insurance Act sets up a Motor Compensation Fund, paid for out of every motor sticker sold, to compensate people injured in a road accident - or the families of people killed - who cannot recover from an insurer: an uninsured or a hit-and-run driver. It covers injury and death, not damage to your car.
Part of motor premiums also goes, by law, to the National Health Insurance Fund to pay for the emergency treatment of road crash victims. A hospital should not refuse emergency care to a crash victim for want of money.
Ask the NIC how to apply to the fund if you are in this position. Keep the police report: it is the starting point.
Commercial drivers
Trotros, taxis, Uber and Bolt cars and okada need cover for carrying fare- paying passengers. A private policy on a car used for ride-hailing may not pay out at all after a crash with a passenger in it. Tell the insurer what the car is used for.