The issuance of Police Motor Vehicle reports on the image of the insurance industry

In the past, settling and paying insurance claims was challenging. This was mainly due to selling insurance on credit. The No Premium No Cover directive changed this on April 1, 2014. Before this, many clients did not pay their premiums. This left insurance companies without funds to settle claims fairly.

Today, insurance companies are eager to pay claims promptly. They use claims payment as a way to advertise their services. This helps improve their image and customer satisfaction. However, challenges still exist in the settlement process.

Insurance companies often rely on the Ghana Police Service for motor-related claims. The police investigate accidents and provide reports needed for claims processing. These reports indicate who is at fault in an accident.

The Road Traffic Act mandates that drivers report accidents to the police quickly. Section 124 of the Road Traffic (Amendment) Act outlines these duties clearly. Amendments have added requirements for reporting accidents involving injuries or fatalities.

The issuance of police reports can be problematic. Delays and high costs hinder timely access to these documents. Insurance companies need these reports to verify claims and determine liability.

When a claim is filed, insurers must confirm its legitimacy first. They also need to identify the negligent party responsible for damages. This party or their insurer will bear legal liabilities related to the accident.

To improve this situation, the National Insurance Commission (NIC) should engage with the police service urgently. They could establish a Memorandum of Understanding (MoU) for efficient report issuance. This agreement might include allocating part of motor premiums to support police investigations.

Such measures would encourage quicker investigations by the police at lower costs for claimants. Reports should be prepared within a specific timeframe without requiring follow-ups from requesters.

In conclusion, improving the efficiency of police report issuance will enhance motor claims payments. This change could help correct public perceptions about insurance and its industry overall.