Motor vehicle drivers exposed?
As a commercial or a private vehicle driver, have you asked yourself how much you will receive as a driver in terms of compensation in case your vehicle is involved in an accident. The compulsory motor insurance is to cover third parties. As a driver, are you a third party or at what point can you become a third party? As a driver, is your benefit on the motor policy unlimited? If your benefit is limited, is it enough?
The motor vehicle (third party insurance) Act 1958 has defined the policy and policy of insurance to mean a policy in respect of third party risks arising out of the use of a motor vehicle. The Act further state that, subject to the provisions of this Act, no person shall use or cause or permit any other person to use a motor vehicle unless there is in force concerning the use of that motor vehicle by such person or such other person, as the case may be, such a policy of insurance or such security in respect of third party risks as complies with the provisions of the Act.
This makes it clear that motor vehicle insurance which is compulsory primarily is to cover for risks arising from third parties. A third party is an entity that is involved in some way in an interaction that is primarily between two other entities. Motor insurance primarily is between the insurer and the owner of the vehicle or the user of the motor vehicle. Third parties are others who are primarily not part but can be affected by their transactions. The insurance company which is a primary entity is a legal entity that can be sue and be sued. The other primary party is the owner or user of the vehicle. This means that the motor vehicle does not cover the user/driver of the vehicle. The motor policy clearly states that In respect of a legal liability to third parties resulting from an accident caused by your vehicle we will indemnify: You or any other person driving, using or in charge of your vehicle with your consent or any authorised passenger getting in, on or out of your vehicle for:
Death of or bodily injury to any person, and/or
Damage to property belonging to someone other than you or a member of your household.
The benefit for third-party injury or death is unlimited. What is limited for third parties are the damage to their properties. The policy also pays reasonable medical expenses incurred in connection with any bodily injury by violent, accidental and external means sustained by you and/or any occupants of your motor vehicle as to the direct result of an accident to your motor vehicle but such amount shall not exceed the authorized medical expenses limit shown in the schedule of the policy. The period within which liability is admissible shall be 48 hours after the accident. The insurance policy also pays compensation for bodily injury or death sustained by any member of your household or any other occupants or fare-paying passengers, other than you or the driver whilst getting into, on or getting out of your Motor vehicle which results from an accident.
Most drivers of both private and commercial vehicles do not know that they are not regarded as third parties when their vehicles cause an accident. The driver will just receive what is called the personal accident cover benefit. Insurers pay the amounts as defined in the scale of benefits below if the driver in control of the vehicle and/or the mate whilst in the vehicle sustained bodily injury or death caused by or arising out of a motor accident. Such an injury or death should manifest itself within 3 months. The amount the driver can benefit up to is GHS2, 000.00 or GHS5, 000.00. The scale of benefit is below:
| Scale of Benefits | ||
| 1. Death | 100% | |
| 2. Total and irrecoverable loss of sight in both eyes | 100% | |
| 3. Total Loss by physical severance at or above the Wrist or ankle of both hands or feet or of one hand and one foot. | 100% | |
| 4. Total loss by physical severance at or above the wrist or ankle of one hand or one foot together with the total and irrecoverable loss of all sight in one eye. | 100% | |
| 5. Total and irrecoverable loss of all sight in one eye | 50% | |
| 6. Total loss by physical severance at or above the wrist or ankle of one hand or one foot. | 50% | |
| 7. Hospitalisation/Disablement from engaging in or giving attention to such a person’s occupation. | 1% of S. I. Per Week for a period not exceeding 26 weeks | |
| 8. Medical Expenses Necessarily Incurred. | Not More Than 20% of the Sum Insured. |
This is what the driver would benefit and the question is, would GHS2,000.00 or GHS5,000.00 be enough when you have a loss of sight in both eyes, or lose both hands or legs? This simply means that the compulsory third-party motor insurance is to cover your legal liabilities towards other road users but not you. This also means that you the driver is exposed.
There are other policies there to cover drivers and give them total protection. The joy is to first know you are not fully covered under your motor insurance then you can ask your insurers for further cover. Most insurers underwrite a standalone policy called Personal Accident. With the standalone Personal Accident policy, the driver can select his sum insured as he/she prefers. For instance, you can select GHS1million as your sum insured. This would give you wider and enough coverage and you will benefit from this policy even if you are involved in a motor accident.
With the personal accident policy insurance, the insurance company will pay to the Insured or his legal personal representatives the sum insured if during the Period of Insurance the Insured, being a person between the ages of 15 and 70 years shall sustain bodily injury caused by violent accidental external and visible means.
If you are a driver and need more information on the personal accident cover, just talk to your insurance company. I am also with much conviction that, the various drivers’ unions could group their drivers and purchase Group Personal Accident policy to give wider coverage and protection to their drivers.
Thank you!
justice@husbelriskconsult.com
Ref:
http://laws.ghanalegal.com/acts/id/45/motor-vehicles-third-party-insurance-act-
https://whatis.techtarget.com/definition/third-party
Motor third party policy document
The personal accident policy document
