About 82% of Drivers do not report for Vehicle Insurance Claims – YAFO

The frustration in securing needed documents – police reports – to validate insurance claims has led to over 82% of drivers/vehicle owners not reporting claims, the Young Africans for Opportunities (YAFO) has revealed.

The frustration in the process to validate insurance claims takes various forms and surcharges both official and unofficial fees on policyholders. Sometimes, the cost of validating an insurance claim is more expensive than the cost of the eventuality that has occurred or the amount of claim that would be paid by the insurance companies. This is the reality that has led to many failing to report for vehicle insurance claims during an eventuality.

This revelation was made by Nathaniel Dwamena, Co-founder and Programs Manager of YAFO during a studio interview with Original FM in Accra. He mentioned that the research is part of the project dubbed Driver Mo, which seeks to advocate for market-oriented vehicle insurance in Ghana.

During the interview, Mr. Dwamena, mentioned that there is a knowledge gap in the claim process and admonished insurance companies to educate clients on the claim process.

He also revealed that vehicle insurance is bought not for its benefit but because it is mandatory and also to avoid police harassment. Accordingly, vehicle insurance should be holistic and provide incentives that would prevent accidents rather than only seeking to compensate for losses.

During the discussion, Mr. Boamah asked about when the Driver Mo report would be launched and recommendations from the report. The tentative date was January 2023 for the Driver Mo report launch. As part of the recommendation, Mr. Dwamena mentioned that educating policyholders on the claim process will fill the knowledge gap. Also, insurance companies should be innovative with their products and there should be driver profiling systems to track good records so that accident-free drivers can be incentivized to maintain such track records.

The Young Africans for Opportunities through Driver Mo initiative is a step that would ignite policy conversation on vehicle insurance in Ghana.