Government has been urged not to consider including vehicle insurance funds as one of the sources for the Domestic Debt Exchange Programme.
The inclusion, according to the Young Africans for Opportunities (YAFO), poses a risk to vehicle insurance, particularly in the case of an emergency.
“The National Road Safety Authority (NRSA) reported that a total of 17,272 vehicles were involved in accidents, of which about 1,900 lives perished in 2022. Therefore, there is a need for the readiness of funds to compensate victims during any eventuality.”
This was contained in a statement signed by the President of YAFO, Nathaniel Dwamena, on Thursday, February 2.
This domestic debt exchange is part of a more comprehensive agenda to restore debt and fiscal sustainability. The successful completion of this programme is a critical component of both the debt reduction programme and the IMF programme discussions.
But YAFO says the government should rather put a ceiling on borrowing, employ fiscal discipline, and cut waste, among other measures.
“It is time to put a ceiling on government borrowing and provide a transparent and participatory process for the increment of such ceiling if the need arises. Also, the government must approach the crisis holistically and demonstrate commitment by reducing the size of government, employing fiscal discipline, and cutting down not only spending but also reducing government waste.”
Ghanaian drivers insure vehicles to avoid ‘police harassment’- Report
“In Ghana, insurance penetration is low due to a widespread notion of unwillingness to pay claims to subscribers. According to our Driver Mo 2022 report, the benefit of vehicle insurance is yet to be realized because most subscribers have reported that they subscribe to third-party to avoid police harassment and also to fulfill statutory obligations, making most Ghanaians reluctant to report for insurance claims.”
Full statement below: