The Insurance Commission has suspended the implementation of the 800% increment in motor insurance at least for the time being.
The increment should have taken effect today following a meeting by representatives of insurance companies yesterday.
In announcing the increases, the Chief Executive Officer of the Ghana Insurers Association, Atsu Enyawovor said the premiums have been low for far too long.
He said when the premiums paid per year for a 33 seater-vehicle travelling from Accra to Kumasi is divided per day, the total premium is negligible.
With the new hikes he said drivers may be paying ¢1.30 per day. How does that affect transport fares? He asked.
He said those complaining about the hikes are the ones who drive recklessly and cause needless accidents in the country for insurance companies to pay huge claims to clients.
Atsu Enyawovor said the hike in premiums has also increased their capacity to adequately compensate victims in an event of accidents.
But the announcement of the hikes was met with stiff resistance by some drivers association.
The Chairman of the Ghana Road Transport Coordinating Council GTRCC Alhaji Aliu Baba threatened that drivers will begin to form their own insurance companies.
He did not understand why the insurance companies will announce such a hefty increase at a time when they are supposed to be paying for seat belts, road worthiness, fuel etc.
He described the hikes as "barbaric" and quite disrespectful because the drivers who are stakeholders were not consulted.
It appears the drivers’ have been given a listening ear.
The deputy Insurance commissioner Simon Davor said on Joy FM’s Newsnite the increase would be held back for some time so there can be consultation.