Road Accidents Are ‘Breaking Down’ Insurance Companies In Ghana

According to research, road accidents can impose significant financial burdens on insurance companies due to the costs associated with vehicle repairs, medical expenses, legal fees, and potential liability claims.

Subsequently, the Digital Marketer for Priority Insurance Company Limited in Ghana, Samuel Kwame Boadu has revealed that even though insurance companies in Ghana take a premium for providing cover for vehicles in case of legitimate liabilities the increasing road fatalities are putting financial burden on insurance companies

Increasing road accidents have a critical economic cost on the insurance companies in Ghana as guarantors are paying tremendous measures of monies in claims as a result of these accidents and the general effect on families.

Samuel Kwame Boadu, Founder of SamBoad Business Group Limited, the Digital Marketing Firm responsible for Priority Insurance Company’s Digitalization expressed this at a conversation on the effect of road accidents in Ghana during the recent Priority Insurance’s Agents Awards.

According to the National Road Safety statistics, there were 6,472 road accidents in the country between January and May 2022, resulting in 6,620 injuries and 1,140 deaths.

The data indicate that 4,873 private cars, or 44.88 percent of the vehicles in question; 3,669 commercial vehicles, representing 33.79 percent; and there were 2,316 motorcycles involved in road accidents, or 21.33 percent.

According to the National Road Safety data, Greater Accra had 2,736, Ashanti had 1,496 and Eastern had 709 as the three top regions with the highest number of road crashes between January and May 2022.

Mr. Boadu emphasized that the rising number of road accidents can be reduced if the National Insurance Commission and the Ministry of Roads and Highways improve Road Safety education on media platforms and in-person.

In this regard, some insurance companies, like Priority Insurance Company Limited, are leading the fight against road safety by hosting seminars and forming partnerships with Station Masters to educate members of their stations.

Ghana Advised To Take Advantage Of The Opportunities In Insurance

Samuel Kwame Boadu during the discussion also exposed the idea that some insurance agency unjustifiably rip off their clients, expressing that the majority of these issues depended on a misconception of the kind of insurance contract cover given by some field specialists.

He added that potential clients should see obviously, the agreements of the insurance cover they buy so they would be remunerated suitably based on the cover.

He explained that the National Insurance Commission, which oversees, regulates, and controls the country’s insurance industry, regulates insurance companies and that Priority Insurance Company Limited is one insurance company that promptly pays claims.

As a result, he advised people whose legitimate claims were denied by insurance companies to use the Commission to get the right kind of compensation.

Credit: The Business & Financial Times (Ghana)