Motor insurance has one main objective which is to provide compensation for loss or damage to one’s motor vehicle.

There are other uses of motor insurance which are:
(I) Providing compensation for injury or death to third parties arising from vehicular accidents.
(ii) Providing compensation to the car owner in the event of loss arising out of theft of the vehicle or loss from damage caused by fire.

No. The type of motor insurance cover taken will determine which benefits will avail the policy holder or third parties.

1. Comprehensive
2. Third Party (Fire & Theft)
3. Third Party

Where one takes comprehensive policy all the benefits stated in one above will apply. However, a fire and theft policy provides no cover for own damage to the vehicle but rather cover losses or damage arising out of fire and theft.

Third Party Policies (which are most common) provide compensation for only injury or death to third parties and damage to the third party pro caused by the vehicle.

This again will depend on the policy being purchased as you need not mention the value of the vehicle if it is third party policy being accessed.
For comprehensive and third party (fire & theft) policies, it is the current market value of the vehicle.

Yes. You have to principally take one because the Motor Vehicles (Third Party Insurance) Act, 1958 (as amended) demands that whoever uses a vehicle on any public road must take insurance to cover his liabilities to others arising out of the use of the vehicle.

This is a common concern of a lot of policyholders. Basically in Ghana, motor insurance is taken for the payment of money and not to replace the vehicle. Further, there is provision for repairs where damage is not excessive (above 75%).

There are some reasons:
1. An old part is being replaced with a new one.
2. The repair of part of the vehicle is impossible or will leave the vehicle deformed e. g. painting part of the body (affected by the accident) and leaving the rest.
3. There is what is called a policy excess on the insurance policy. This is a “housekeeping” measure which is to ensure that proper care is taken of the vehicle. Where excess applies, the policyholder bears a specified percentage of all claims.

• Do not drink and drive.
• Maintain and check your car/vehicle regularly.
• Do not over speed and also respect speed limits on the road.
• Do not carry more persons than allowed by licensing authorities.
• Do not sell or buy your car / vehicle together with Insurance Certificates as it is not transferable.
• Anytime a vehicle changes hands, the validity of the insurance on it ceases with the change.
• Check your tyre pressure regularly.
• If you or your relation is involved in an accident and the vehicle is not insured or the insurance is defective, direct your claim to the National Insurance Commission (NIC).
• If a vehicle knocks you or your relation down and runs away, direct your insurance claim to the NIC.
• In the event of dispute or misunderstanding between you or your insurance company, refer the matter to the NIC.