Motor Compensation Fund

Modalities / Procedures

Claims Procedure

  1. The victim must first claim from the insurer or vehicle owner. If that fails the victim can petition either in writing to the Secretary of the Compensation Fund, or call personally at the offices of the National Insurance Commission (NIC).
  2. The victim will be required to complete a form. (Information given by the victim will help the Secretariat determine if the victim meets the criteria for an award.)
  3. A firm date will then be given to the victim to meet the Committee for an award.

Documents Required in Support of a Petition to the Fund

A victim making a claim on the Fund must support the petition with the following documents:

  • (a) A letter of petition
  • (b) A police report
  • (c) A medical report
  • (d) Two (2) passport size photographs (preferably) authenticated by a medical officer who treated the victim.
  • (e) Letters of administration (where the petition is on behalf of a deceased person).
  • (f) Where an insurance company refuses a claim, a letter from the company stating clearly reason(s) for the refusal, must be provided.

The Secretariat

The Legal Department (NIC) is responsible for the administrative work of the committee. The Department receives petition and arranges all meetings, of the Motor Compensation Fund.

The Fund procures most of its assets. The Fund has a vehicle, a computer and office furniture. It also procures its own stationery. Funds are received by the Finance Department of the NIC, which is responsible for the daily management of the Fund. It ensures correct bank processes and the issue of cheques. The Treasurer oversees the financial transactions and ensures proper investments of the Fund.

Tenure of Office

A member of the Committee remains in office unless he resigns, dies or is removed from office or is for a sufficient reason unable to act as a member of the Committee.


Members of Motor Compensation Fund and all supporting staff are paid honorarium quarterly.

Meetings of the Committee

The Compensation Fund Committee meets quarterly.

The Commissioner (Chairperson) chairs the meeting and in her absence the vice chairperson.


To ensure effective operations, four (4) Sub-committees have been set up as follows:

  1. Awards Sub-committee
  2. Technical Sub-committee
  3. Finance Sub-committee
  4. Legal/Investigative Sub-committee

Awards Sub-Committee

The Sub-committee meets fortnightly to make awards to persons who have petitioned for compensation. The meeting is chaired, by a non NIC member of the Committee, and assisted by officers of the Secretariat.

The Sub-committee reviews the documents presented by the petitioner, and interviews the petitioner before making the award. The awards are based on levels of compensation approved by the Committee. If in the view of the sub-committee, the injuries demand more compensation than, the agreed levels, the petition is forwarded to the main Committee for consideration.

Technical Sub-Committee

The Sub-committee handles technical issues relating to Motor Insurance and Motor insurance claims. They also make proposals on the levels of compensations to be paid to petitioners.

Finance Sub-committee

The Sub-committee is responsible for the receipt of funds, ensures bank reconciliation and issues cheques. It assists the Treasurer in the preparation of the annual Budget and the monitoring of investments. It is also responsible for formulating the Funds investment policy.

The Finance Department of the National Insurance Commission, prepares the draft Financial Statement of the Fund. This is reviewed by the Treasurer and the Finance Sub-committee. Following the review the draft Financial Statement is sent to the External Auditors. Mrs Osei Kwabena and Associates are the External Auditors of the Compensation Fund.

Legal/Investigative Sub-Committee

The sub-committee works to reduce fraudulent claims on the Fund. It also ensures, all statutory documents are on file.

Public Education and Publicity

The Fund finances Public Education and Publicity activities to educate the public on Insurance, especially Motor Insurance and the Motor Compensation Fund. Brochures and other materials on Motor Insurance, the Motor Compensation Fund are published and distributed to the public

Currently a TV series on Insurance is being developed. These will be aired shortly. The Secretariat also undertakes Regional and District tours to educate the public on Motor Insurance and its related matters, including the Compensation Fund and the Complaints Unit. All these are in fulfillment of the core functions of the Fund.