All 24 Trotro, Taxi and Pragyia Drivers Union in the Ashanti Region have protested against the planned 10% increment in motor insurance premium by the government as announced by the National Insurance Commission (NIC) last week.
The NIC announced then that third-party insurance premiums will increase by 10% effective February 1, 2025.
The adjustment, according to the NIC, is aimed at ensuring insurance companies can meet rising claims costs. The premium for third-party motor insurance, previously set at GH¢482 for saloon cars, will now jump to GH¢530, which would help insurers keep up with “claims” payment.
Addressing a news conference in Kumasi, on Wednesday, this week, Mr. Joseph Mensah, Head of the Group disclosed that the previous government, led by Nana Addo Dankwah Akufo-Addo, before leaving office signed a policy by the NIC to increase insurance premium by 10%, which he (Joseph Mensah) says is very alarming with the frequent increment of fuel prices, which situation is akin to “adding salt to injuries”.
According to him, the situation will incite drivers to charge more than the regulated prices adding that the Union has not received any official letter informing them of the increment.
Mr. Mensah pleaded with President Mahama, various appointees and stakeholders to hold on the implementation of this policy, and dialogue with their executives to come to a compromise, noting that their members will advise themselves if their concerns are not addressed.
Mr. Emmanuel Osei Yeboah, First Trustee, Kumasi Accra Highway Express, Kumasi Branch expressed their discomfort with the implementation of the said policy adding that there was no negotiations between government and the transport unions towards the formulation of the said policy.
Indicating some of their challenges, Mr. Osei Yeboah revealed that the rampant increment of fuel is already having its adverse effect on their activities as “commercial drivers” just as bad nature of the roads are having a toll on their vehicles and high cost of spare parts.
The Trustee noted that the Transport Operation business is not lucrative as it used to be due to the named challenges as a result of which drivers cannot break even, let alone make profit to repay loans obtained by drivers.
Mr. Osei Yeboah urged the government to hold on with the implementation of the policy for a review because drivers are not happy with it, noting that if the said policy is implemented, transport fares would be increased to correspond with the increment in insurance at the expense of passengers. .
The group has threatened to embark on an industrial strike action if the government fails to address their concerns since transport is “indispensable” in the lives of Ghanaians.
From Oswald Pius Freiku, Kumasi
