The Deputy Commissioner of the National Insurance Commission, Mr. Simon N. K. Davor, has disclosed that owners of uninsured vehicles can seek refuge in the motor compensation fund, which acts as a ‘saving grace’ for such vehicles.
This disclosure was made during the Public Accounts Committee’s sitting on the Accountant General’s report for the year 2017.
“In such circumstances where the vehicle is not insured, so you cannot get compensation from any insurance company. Or the driver is driving without a valid license and the insurance company repudiates the liability, this fund is set up and it is funded by the insurance company and we use that fund to compensate those people who were injured or suffered loss under that category”, he said.
Making reference to section 192 of the Insurance law, Mr. Davor added that the motor compensation fund serves as an alternative for people who do not comply with the rules like drivers without driving license or people with no insurance on their vehicles.
He also said that the money generated from the fund is usually from the profit made from the sales of insurance stickers.
“If the sticker costs the commission GHC 3 to produce, we sell it to everybody at GHC 5. The profit we make from that is put into that fund to compensate those people who suffer losses or injuries or death relating to that”, he explained.
He also mentioned a claims and settlement bureau, as a unit in the commission, which handles such matters. He said that before a compensation is made to victims, the bureau refers to the last police report on the incident.
“The last report we look at before compensating you is the police report. If the police report indicated that the driver is at fault, he is taken to court and he is fined. At times it may not be the driver’s fault”.
