Amend insurance laws for mandatory towing by insurers

An Insurance Consultant, George Addae has impressed on authorities to amend Ghana’s insurance laws to allow insurance companies undertake the mandatory towing of vehicles.

He explains to Citi Business News the new provisions will among others spell out the modalities in carrying out that mandate.

“Now to create a levy on the motor insurance car policy will require legal backing and that is why insurance will require some amendment to make provision for the charges of levying clients in order for tows,” he stated.

The Ministry of Transport has been compelled to suspend its mandatory towing levy following the huge public outcry the proposal generated.

The move is also expected to reduce the accidents associated with crashes into stationery vehicles.

Some have opposed the current plan arguing that the task be given to insurance companies.

But George Addae explains to Citi Business News this will largely depend on an accommodating law.

“Some policies will not make provision for towing and even those that make provisions for towing, have conditions under which towing will be allowed, then it will only call for a general approach which will be a levy across all insurance policies to cater for towing.”

“We can look at this the towing levy in light of section 1841, 183 of the insurance act that established compulsory insurance for commercial purposes and then proceeded to establish links that will create a fire service maintenance levy fund so the towing can be done in the same light,” he added.

Government had plans of implementing the tow tax but subsequently suspended it after the Roads and Transport Committee of Parliament met with the Road Safety Commission, the DVLA and other stakeholders over the matter.

The Ranking Member on the Committee, Kwame Agbodza had explained that the committee wants to probe the issues surrounding the implementation and possibly recommend the recall of the Legislative Instrument supporting the fee.

Some MPs including the Deputy Minority Leader, James Avedzi Klutse, had earlier called for the policy to be scrapped following these reactions. But Osei Owusu said the critics lack understanding of the issue.

Prior to the suspension, the First Deputy Speaker of Parliament, Joe Osei-Owusu, had described as narrow-minded, arguments against the mandatory towing fee.

GB&F

Source: Citi Business News

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