Redefining Motor Insurance Stickers in the Era of MID: An International Perspective
By Bernard AKYIN-ARKOH
In recent years, technological advancements have reshaped numerous industries, with the insurance sector being no different.
One significant advancement in Ghana’s motor insurance industry has been the launch of the Motor Insurance Database (MID). This online system aims to streamline and improve the process for verifying vehicle insurance coverage.
This technological development has led to a fresh examination of the relevance and importance of the conventional motor insurance decal placed on car windshields.
Mandatory auto insurance in Ghana
In certain nations like Ghana, having motor insurance is mandated by law. The Motor Vehicles (Third Party Insurance) Act from 1958 ensures that motor third-party insurance is obligatory in Ghana, as stated in Section 3(1). This section specifies: "Notwithstanding anything contained herein, nobody should operate or allow another individual to run a motor vehicle without valid coverage through an appropriate insurance policy or equivalent security for third-party liabilities in compliance with the stipulations of this legislation."
The Vehicle Insurance Registry in Ghana
The Motor Insurance Database (MID), implemented on January 1, 2020, represents a major advancement in updating Ghana’s insurance sector. This system was established to address the issue of vehicles using fraudulent motor insurance decals, thus safeguarding individuals and their assets.
This unified digital platform gathers up-to-date information about insured cars, enabling officials and involved parties to quickly verify a vehicle’s insurance standing without depending on paper records.
By merely dialing *920*57# and adhering to the instructions to input a car’s license plate number, individuals can promptly obtain insurance information including the automobile brand, paint color, the company providing coverage, commencement date of the policy, and when it expires.
A major advantage of the MID lies in enhancing the efficiency and precision of insurance verification. By having current information readily available, enforcement officials can reduce fraudulent activities and guarantee that every vehicle on the roads has proper coverage. This shift towards digital verification aligns with worldwide advancements in insurance tech.
Nonetheless, the human element continues to be a crucial aspect. In regions where digital infrastructure or internet connection is scarce, people might not have instant access to electronic verification systems. In these situations, a tangible insurance decal displayed on the car window can still effectively demonstrate insurance coverage.
Even with the evident benefits of the MID, obstacles persist. Technical problems or service interruptions could impede immediate digital verification under certain circumstances. Moreover, various parties might still favor or demand a concrete, physical proof of insurance coverage, maintaining the importance of motor insurance decals in particular scenarios.
The change from using physical motor insurance decals
As the implementation of the Motor Insurance Database progressed, the traditional use of placing motor insurance decals on car windshields has slowly diminished. Today, digital checks offer immediate validation of insurance coverage, diminishing the necessity for tangible stickers to verify one’s insurance status.
This change brings up a crucial query: Does the law require you to show a motor insurance sticker on your windshield?
Notably, the necessity to show a motor insurance sticker is not explicitly outlined in the Insurance Act, 2021 (Act 1061). Rather, this obligation stems from an amalgamation of legal clauses and supervisory guidelines within Ghana’s insurance and transportation legislation.
According to Section 3(1) of the Motor Vehicles (Third Party Insurance) Act, 1958 (No. 42), it states: "Notwithstanding the provisions of this Act, no individual shall operate, nor allow another person to operate, a motor vehicle without having an active insurance policy or adequate security covering third-party liabilities in compliance with the requirements set forth in this legislation." This mandates the necessity for individuals to maintain appropriate automobile insurance coverage legally.
According to Section 17(1) of the act, "Anyone operating a motor vehicle on a public road must, when asked by a law enforcement officer, provide their name and address as well as the name and address of the vehicle’s owner, along with showing their insurance certificate. Failure to comply with these requirements constitutes an offense under this legislation." This requirement ensures that drivers have their valid insurance documentation readily accessible for review when requested.
Although the Insurance Act, 2021 (Act 1061) doesn’t specifically mandate the display of insurance decals on car windshields, it gives the National Insurance Commission (NIC) the power to manage and supervise the insurance sector. According to Section 203, the NIC has the authority to create essential forms, certificates, and documentation needed for adherence.
Consequently, the requirement to show the insurance sticker on the windshield originates from regulations set forth by the National Insurance Commission (NIC). In actual practice, this mandate is implemented by the Motor Traffic and Transport Unit (MTTU) of the Ghana Police Service.
Regarding the roadworthy certificate, the Road Traffic Act, 2004 (Act 683) clearly mandates that a roadworthy sticker must be shown. As stated in Section 95 of the Act:
Section 95 – Issue of Road Use Certificate/sticker
- The Licensing Authority shall upon payment of the prescribed fee, issue to the applicant a certificate in the form of a sticker for the motor vehicle.
- The sticker must be displayed on the front windshield of the motor vehicle in such a way that it can easily be recognized by a police officer or the Licensing Authority.
- The validity period for a road use certificate will be six months for commercial vehicles and twelve months for personal cars from the issuance date before they expire.
- If the Licensing Authority determines that a road use certificate has been damaged beyond recognition or is missing, they have the authority to provide a replacement road use certificate after the required fee is paid.
This clause explicitly mandates the obligation to showcase the roadworthy sticker on the windshield, unlike the less direct or suggestive stipulation regarding insurance decals.
Conclusion
In Ghana’s developing insurance landscape, influenced by the Motor Insurance Database, the requirement to display a motor insurance sticker on car windshields necessitates careful thought.
Although digital verification provides greater efficiency and trustworthiness, the persistent employment of physical stickers tackles practical issues like system failures and limited access, particularly within more disconnected areas.
Balancing technological advancements with traditional methods will be crucial for establishing efficient and equitable insurance verification within Ghana's motor insurance sector.
>>>the writer Bernard is a Certified Chartered Insurance Practitioner (ACII-UK), a Chartered Property Casualty Underwriter (CPCU), and has earned an Associateship in Risk Management (ARM). With a notable career as an author, he also boasts prestigious accolades such as being named the second-runner up in the 2024 AIO-YIPs African Next Generation Award and receiving the Young Achiever Award at the 2024 Ghana Insurance Awards. Holding an Executive MBA in Finance from the University of Ghana, Legon, Bernard currently serves as a manager at Star Assurance Limited. Beyond his managerial duties, he contributes expertise as a faculty member at the Ghana Insurance College (GIC) and participates actively in the Professional Education and Research Committee within the Chartered Insurance Institute of Ghana (CIIG). He can be contacted through +233249236939 and or akyinarkohbernard@gmail.com
References
- Insurance Act, 2021 (Act 1061)
- The Motor Vehicles (Third Party Insurance) Act of 1958 (No. 42)
- Road Traffic Act 2004 (Act 683)
- Agyin-Arhkoh, B. (2024). An extensive overview of Ghana's insurance sector: General insurance edition.
- https://nicgh.org/
