Ghana’s insurance commission loses over $71.6 million (GH¢390 million) revenue to fraudsters annually, here’s how

The insurance commission in Ghana has announced that it loses approximately GH¢390 million of gross revenue annually to fraudsters.

Ghana’s insurance commission loses over $71.6 million (GH¢390 million) revenue to fraudsters annually, here’s how

These fraudsters, the commission said, issue fake insurance stickers to unsuspecting vehicle owners.

The Commissioner of Insurance at the National Insurance Commission (NIC), Mr Justice Yaw Ofori said this when he spoke to Accra based Daily Graphic.

According to him, the amount lost represented insurance premiums that should have been paid on about 1.2 million vehicles that were found to have been using fake insurance stickers.

Mr Ofori said the amount was a substantial potential insurance premium that could have helped to improve the fortunes of the companies and the insurance industry in general.

“Assuming that these vehicles were to even do third party insurance which cost GH¢325, that will mean the industry is losing out on about GH¢390 million annually to these criminals,” he said.

Adding that “Aside the money which is being lost, the country is also losing lives and properties for which compensation cannot be paid because they didn’t have genuine insurance.”

The Driver Vehicles Licensing Authority (DVLA) reports that it registers over 2.2 million vehicles and issues about 1.6 million roadworthy certificates each year, however, the insurance industry sells only about one million motor stickers each year.

The commissioner said it was in the light of this financial loss and its implications on users of fake insured vehicles that the commission resolved to fight the phenomenon with its motor insurance database.

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