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We have no problem with the legalization of Okada – Insurance Companies
The debate of the legalization of Okada has become an interesting one weeks after the National Democratic Congress (NDC) promised it at their manifesto launch.
The Loyalty Insurance Company commenting on the possible legalization of Okada has made known that insurance companies in the country have no qualms whatsoever with the legalization of the Okada business.
According to the company, they are ready to assess the risks involved in insuring motorcycles being used for commercial purposes should the business be legalized.
Chief Executive Officer (CEO) of Loyalty Insurance Ernest Frimpong speaking in an interview with Happy 98.9 FM’s Samuel Eshun, host of the Happy Morning Show said, “Insurance frowns on illegalities and we will not insure something which has not been legalized but we have no problem if it is legalized. We will insure them once it is made legal.”
The businessman noted that currently motorbikes are only registered for private purposes and not commercial ones hence, insurance is sold to only those using their bikes for private purposes. “You can offer someone a lift on your motorbike and that person will be covered but if you use it for hire and receive a reward, we will not pay claims to that third party as it is a breach of our insurance contract.”
He indicated that the same applies to tricycles. “You can use your tricycle to cart your own goods but when you use it to cart goods of other people and charge them, those things are not covered under insurance.
Ernest Frimpong furthered that if the Okada business is legalized, insurance companies will make provisions for them and cover them under some exclusive packages.
“We charge premiums based on the usage and purposes of vehicles. A commercial vehicle is a high-risk investment compared to a private vehicle. So, if Okada is legalized, operators will have to pay a higher amount as premium as the risk is very high for a third party liability. So if it is to be legalized, we will have to increase the premium because of the risks. This is to help cover insurers and the insured,” he reiterated.
The NDC promised to legalize Okada (use of motorbikes for commercial purposes) at their manifesto launch should they win at the December 7, polls. The ruling government has also revealed that they are already in talks with stakeholders to make the Okada business legal.
The Loyalty Insurance Company commenting on the possible legalization of Okada has made known that insurance companies in the country have no qualms whatsoever with the legalization of the Okada business.
According to the company, they are ready to assess the risks involved in insuring motorcycles being used for commercial purposes should the business be legalized.
Chief Executive Officer (CEO) of Loyalty Insurance Ernest Frimpong speaking in an interview with Happy 98.9 FM’s Samuel Eshun, host of the Happy Morning Show said, “Insurance frowns on illegalities and we will not insure something which has not been legalized but we have no problem if it is legalized. We will insure them once it is made legal.”
The businessman noted that currently motorbikes are only registered for private purposes and not commercial ones hence, insurance is sold to only those using their bikes for private purposes. “You can offer someone a lift on your motorbike and that person will be covered but if you use it for hire and receive a reward, we will not pay claims to that third party as it is a breach of our insurance contract.”
He indicated that the same applies to tricycles. “You can use your tricycle to cart your own goods but when you use it to cart goods of other people and charge them, those things are not covered under insurance.
Ernest Frimpong furthered that if the Okada business is legalized, insurance companies will make provisions for them and cover them under some exclusive packages.
“We charge premiums based on the usage and purposes of vehicles. A commercial vehicle is a high-risk investment compared to a private vehicle. So, if Okada is legalized, operators will have to pay a higher amount as premium as the risk is very high for a third party liability. So if it is to be legalized, we will have to increase the premium because of the risks. This is to help cover insurers and the insured,” he reiterated.
The NDC promised to legalize Okada (use of motorbikes for commercial purposes) at their manifesto launch should they win at the December 7, polls. The ruling government has also revealed that they are already in talks with stakeholders to make the Okada business legal.
Source: ghanaweb.com
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