MOTOR VEHICLES (THIRD PARTY INSURANCE) ACT – 1958

Section – 3 – Users of Motor Vehicles to be insured against Third Party Risks.

(1) Subject to the provisions of this Act no person shall use, or cause or permit any other person to use, a motor vehicle unless there is in force in relation to the user of that motor vehicle by such person or such other person, as the case may be, such a policy of insurance or such security in respect of third party risks as complies with the provisions of this Act.

(2) Any person acting in contravention of this section shall be liable on conviction to a fine not exceeding two hundred pounds or to imprisonment for one year or to both such fine and imprisonment and a person convicted of an offence under this section shall be disqualified from holding or obtaining a driving license.

(3) A disqualification under the provisions of subsection (2), unless the court for special reasons to be recorded otherwise orders, shall be for a minimum period of twelve months from the date of the conviction, and any person so disqualified from holding or obtaining a driving license under the provisions of this section shall be deemed to be so disqualified under the provisions of the Road Traffic Ordinance, 1952.

The Motor Vehicles (Third Party) Act, 1958 therefore mandates every vehicle plying on Ghanaian roads to have at least, a valid third party liability insurance. The Third party policy covers bodily injury or death of the third party arising out of an accident involving an insured vehicle and damage caused to any third party property.

It is therefore mandatory for every owner of a vehicle plying on public roads to take an insurance policy to cover the amount, which the owner becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury or damage to property.

Motor insurance policy provides you with covers for legitimate liabilities that may arise in the use of your vehicle. Motor insurance covers in Ghana include:

Third Party Only Cover,

Third Party, Fire & Theft Cover.

Comprehensive Cover

·         Third Party Covers

This Motor Insurance Policy is the minimum cover provided by Insurers in Ghana. It indemnifies the Insured or any other person driving with his/her consent against:

• Death or bodily injury to any third parties, and/or Damage to property belonging to third parties. Damage to your vehicle is however not covered under this cover.
• The minimum limit for Third Party Property Damage at present is GH¢5,000.00 However, this can be increased at your request at an additional premium.

·         Third Party Fire & Theft Cover

This is an extension of the Third Party Cover, and provides indemnity for loss of or damage to your vehicle occasioned by Fire or Theft. It, however, does not cover other accidental damage to your vehicle caused by collision, overturning, etc.

·         Comprehensive Cover

The Comprehensive Motor cover cushions you against all of the risks described above, in addition to accidental damage to your own vehicle arising from:

a) Accidental collision or over-turning

b) Fire, external explosion, self-ignition or lightening

c) Theft, burglary, housebreaking

d) Malicious act

e) Flood, Storm, Hurricane, Volcanic Eruption or Earthquake

·         Additional Benefits for Motor Insurance

Emergency Treatment and medical expenses: Insurers will pay for the first aid cost as well as the first treatment necessary to ensure the life of the accident victims.

Compensation for Bodily Injury or death: Insurers will pay compensation for bodily injury or death sustained by any member of your household or any other occupants, other than the policy holder or the driver.

Personal Accident Benefit to Policyholder/Driver: The policyholder and/or the person driving is entitled to personal accident benefits.

Towing and Storage: In the event of an accident Insurers will pay for the reasonable cost of protection and removal of your vehicle to the nearest repairer or place of safety.

Tyre Replacement: We pay for the replacement cost of any tyre which is damaged and is rendered unusable as a direct result of an accident provided that the damaged tyre was not worn out, rethreaded or recapped prior to the accident.

Windscreen Damage: We pay the replacement cost of your windscreen if accidentally damaged, broken or shattered.

Private Car Pooling/Sharing: You are allowed to use your vehicle for social, domestic and other similar purposes as part of a car pooling/sharing arrangement.

Driving other Vehicles: We will pay your legal third party liability whilst driving a motor vehicle similar to yours but not belonging to you or hired to you under a hire-purchase agreement.

Use outside Ghana: For your travels within the sub-region, Insurers will issue you with an international motor Insurance Certificate known as ECOWAS BROWN CARD. This policy cover liability as specified in the ECOWAS Brown Card Scheme whilst visiting other countries in the West African Sub-region.