Vehicle owners and commercial drivers would now be paying 300% increase for their 3rd party motor insurance. This is half the initial 600% increase in the premium indicated by insurance companies.

That means, policy holders would be paying 3 times more and not 6 times when the premium increase takes effect from Wednesday July 01.

The reduction in the hike was the ultimate decision following deliberations among the Finance Ministry, Insurers Association and the Insurance Commission last Friday, 26 June 2015, according to Joy Business’ exclusive checks.

The Ghana Insurers Association has declined comment but Joy Business has learnt the stakeholders also agreed the remaining 300% would be spread over the next two years for policyholders. Policy holders would be required to pay 150% from January next year and the other 150% from January 2017.

Meanwhile, unlike first-time policyholders who would be required to bear the full cost of the 300% increase, existing ones would still enjoy up to 50% discount – meaning they could be paying about 150% increase instead of the 300%.