Motor vehicle owners will from April have to pay higher insurance premiums.

This, according to the industry players, is to accommodate the increasing cost of claims over the years especially when the premiums were last adjusted some seven years ago.

The president of the Ghana Insurance Association and Managing Director of the State Insurance Company, Ben Acolatse, however, tells Joy Business the review will come with enhanced benefits for policy holders.

“It is worthwhile increasing premiums for us to be in a position to settle claims that may arise from the use of motor vehicles,” he said.

According to him, low premiums customers pay has made insurance companies drag their feet in paying claims sustained by accident victims.

The Chief Executive of Enterprise Insurance, George Otoo, said the increase is long overdue.

“Insurance needs large numbers of people to make the unit price reasonably cheap and because we don’t have too many people in the pool it would have to call for periodic increases from time to time looking at the experience from the pool,” he said.

Source: Myjoyonline.com/Ghana