The Greater Accra Regional branch of the Ghana Private Road Transport Union has called for the suspension of the new motor insurance premiums which are expected to come into force on May 10,2010. Speaking to Public Agenda via telephone on Wednesday, Alhaji Issah Tetteh, the Regional Chairman of the GPRTU, pointed out that consultations on the new premiums were not concluded before the National Insurance Commission (NIC) went ahead to approve them; thus any implementation of the new regime of premiums would be deemed "an imposition." He said "We think it is a proposal" because "for the past two weeks we have spoken to them" but there was no agreement. According to him, discussions were to continue, so "We are surprised they have increased it; we think it is an imposition." The NIC approved the new tariffs on May 1 2010, having found reason in the proposals tabled by the Ghana Insurers Association (GIA), but Alhaji Tetteh has questioned the legality of the approval, pointing out that May 1 2010 was not a working day. The NIC could however not be reached for a reaction to this legal question. The vocal Regional Chairman called for a reversal of the NIC endorsement in the mean time to enable consultations to continue. "They should continue taking what they were taking before." The main reasons for the tariff increase, which is the first since 2002, were astronomical increases in claims cost (for personal injury, death and own damage) due to high rates of accidents on Ghana's roads; high administrative/ operational costs due to significant increases in prices since 2002; and statutory obligations on motor insurers to make contributions to the National Road Safety Commission for its preventive educational campaign against accidents, and the National Health Insurance Scheme for the treatment of accident victims. The new tariffs range between 150% and 250% premium increase depending on the claim records of the category of the motor vehicle for new policy holders. Owners of private individual vehicles will now pay GH¢ 183.72 while private company vehicles will attract GH¢ 142.48. Taxis, on the other hand, will attract premiums of GH¢228.99 whereas mini buses will attract GH¢268.88. For maxi buses, the new premium will beGH¢280.28. On Tuesday, Atsu K. Menyawovor, Chief Executive Officer of the GIA, said the increases were overdue because insurance tariffs had remained constant despite general rise in cost of goods and services. He was quick to point out, however, that "One does not necessarily have to pay the advertised tariffs." Depending on the circumstances, one's premium may be higher or lower than those advertised, he emphasized. Source: Public Agenda