Ride-hailing cabs or e-taxis as they are referred to in Ghana have come to change the game in how we commute and get around in Accra and other major cities. Beginning with Uber, riders now have options in Bolt, Yango, Feenix, Shaxi, and others. For some riders, it is the higher standards and professionalism of the partner drivers of these ride-hailing cabs that make them ditch traditional taxis. Others choose them for the disguise of an unlabelled saloon car, reasonable pricing, and security.
Just like all other vehicles that use public roads, e-taxis are required by the laws of Ghana to maintain the minimum auto liability insurance to compensate their riders and other third parties for injuries, death, and destruction of property in case of an accident. Some of ride-hailing cab companies require their partner drivers to have comprehensive insurance so they can fall on an insurance claim to recover quickly after an accident. From the report of a near-fatal accident involving a journalist in Accra, it appears some cracks may have developed in the due diligence of one of the ride-hailing cab companies in Ghana regarding the insurance status of their partner drivers.
Riding in danger
When Jerry Tsatro Mordy ordered a ride-hailing app on January 12, 2022, nothing could have prepared him for what was about to happen. The trip was to be from Bush Canteen in East Legon to his home in the ACP estate area in Pokuase.
Along the way, at Nogahil Hotel on the N1 highway, a Toyota Rav4 in front of them slowed down to change lanes from the outer to the middle one. However, the driver continued driving at the same speed. Once the Rav4 had changed lanes, they realized that a low-bed truck carrying two excavators had developed a fault and was parked partly outside the road and partly on the outer lane.
In an attempt to avoid a collision with the vehicles in the middle lane, the taxi driver ran one side of the vehicle into the left side of the truck. As a result, that side of the car was ripped from the front door to the back.
Luckily, Jerry sensed danger in good time and jumped to the adjacent passenger seat, something that helped him to avoid being hurt or killed.
An uninsured driver
On seeing the extent of damage to the vehicle, Jerry sought to find out if the driver had comprehensive cover. The driver answered in the negative and said he only had a third-party insurance cover.
However, a few days later, Jerry checked the vehicle’s insurance through the Motor Insurance Database and discovered it did not have a cover. When he reported the incident at the Ride-hailing app's office in Dzorwulu, they were surprised that the vehicle was still active in their system despite having expired insurance.
The staff at the office later told him that they were going to investigate the matter. However, they said that their insurance only covers injuries and not trauma.
The requirement to pay annual car insurance premiums upfront
Since the implementation of the “No Premium, No Cover” directive by the National Insurance Commission of Ghana, vehicle users have been required to pay annual car insurance premiums upfront before they can get coverage. This presents financial difficulties for vehicle users especially given the heavy impact of the global economic challenges on the pockets of Ghanaians. Third-party auto insurance prices saw increases of up to 47% on January 1, 2023, making it more difficult for many vehicle users to get the car insurance they need.
The entry of Brolly into the market has brought a welcome respite into the Ghana insurance market. Partner drivers of all ride-hailing cabs can now pay weekly for their car insurance instead of a one-time annual payment. Vehicle users who earn salaries monthly can also pay monthly for either third-party or comprehensive car insurance.
It is unclear why the driver chose to risk his car and the lives of his riders by driving without insurance. If his reason had anything to do with cost, Brolly has made paying car insurance very convenient now.
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