The National Insurance Commission (NIC) has defended its decision to increase insurance premiums paid by commercial drivers without recourse to the government. The insurance companies intend to increase premium payments by an average of 200% for commercial drivers, effective Monday 10 May, 2010, but the decision was taken without formally consulting with the Transport Ministry under whose ambit commercial drivers operates. Transport Minister Mike Hammah has described the move as unacceptable, adding, the ministry should have been a key entity in such negotiations. “This is an issue that will impact on transport fares, it is important for us to have a very wise stakeholder consultation and the Ministry of Transport should have even had to play a more pronounced role in such a decision but here I am; nobody notified me,” he told Joy News over the weekend. “I don’t know why they would have to take this decision without consulting the Ministry of Transport and for that matter government; It is totally unacceptable.” The commercial drivers, however, say they will pass on the cost to commuters should the insurance companies increase premiums. But Chief Executive Officer of the NIC, Atsu Menyoworvor, who was speaking on the Super Morning Show on Joy FM on Monday, has justified the increases saying they have become necessary to factor in changes since the 2002 tariff regime came into effect. Asked whether the insurance industry is running at a loss, the NIC boss responded in the affirmative in the case of motor insurance companies. The NIC CEO also insisted that he was unsure the authority was supposed to consult with the Transport Ministry before any such decision was taken but hinted that the insurance companies are ready to meet the ministry to justify their decision. He said the NIC had taken the decision without recourse to the ministry because anyway as figures and factors need to be raised were already in the public domain. Story by Fiifi Koomson/Myjoyonline.com/Ghana