Rethinking motor insurance sticker in the age of MID

The role of traditional motor insurance stickers is being questioned. This change comes with new technology in the insurance industry.

In Ghana, having motor insurance is legally required. The Motor Vehicles (Third Party Insurance) Act, 1958 mandates this. Section 3(1) states that no one can use a vehicle without valid insurance.

The Motor Insurance Database (MID) was introduced on January 1, 2020. It aims to eliminate fake motor insurance stickers and protect lives. This digital system captures real-time data on insured vehicles.

Authorities can quickly confirm a vehicle's insurance status without physical documents. Users can check details by dialing *920*57# and entering the vehicle registration number. They will receive information like the vehicle make, color, insurer name, policy start date, and expiration date.

The MID improves efficiency and accuracy in verifying insurance. Enforcement officers can reduce fraud with up-to-date data. However, some areas lack digital infrastructure for immediate access to verification systems.

In these cases, visible stickers still provide practical proof of coverage. Despite the benefits of the MID, challenges persist. Technical issues may disrupt electronic verification at times.

Some stakeholders still prefer physical proof of insurance coverage. This keeps motor insurance stickers relevant in certain situations.

With the MID's rollout, displaying motor insurance stickers has declined. Digital verification now offers instant confirmation of insurance status.

This raises an important question: Is it mandatory to display a sticker? Interestingly, the Insurance Act, 2021 does not explicitly require it. The requirement is based on various legal provisions and regulatory directives.

Section 3(1) of the Motor Vehicles (Third Party Insurance) Act establishes the need for valid motor insurance. Section 17(1) requires drivers to show their certificate upon request from police officers.

While the Insurance Act does not mandate stickers on windscreens, it allows regulation by the National Insurance Commission (NIC). The NIC oversees compliance through necessary forms and documents.

Regulatory directives from the NIC enforce sticker display practices via police departments. In contrast, roadworthy certificates must be displayed as per Section 95 of the Road Traffic Act, 2004.

This section clearly states that roadworthy stickers are legally required on windscreens. The necessity for displaying motor insurance stickers is less clear-cut than for roadworthy ones.

In conclusion, Ghana's evolving insurance landscape requires careful consideration regarding sticker display requirements. Digital verification enhances efficiency but physical stickers address practical challenges in less connected areas.

Balancing technological advancements with traditional practices is essential for effective verification in Ghana’s motor insurance sector.