Kofi, a taxi driver, dozed off briefly and caused damage to three other cars. Kofi’s taxi was insured by the owner under a Motor Comprehensive cover. The cost of repairs to the three other vehicles is about GHC 20,000.00, but insurers have indicated to pay only GHC 5,000 as this is the limit on the policy. Kwame, the owner of Kofi’s taxi, says he has a comprehensive cover and thought everything has to be paid by the insurer. Now Kwame has to pay about GHC 15,000.00 to the owners of the other vehicles even when he bought a comprehensive cover.
- The Myth
Comprehensive covers everything, and every expense is paid.
- The Reality
Comprehensive doesn’t mean everything, and anything is covered. Comprehensive covers damage to the insured’s vehicle plus third-party liabilities, including damage to another person’s vehicle. However, limits apply, and the standard cover only gives a limit of GHC 5,000.00 for damage to a third party’s property unless the insured buys an additional cover.
- Our Advice
No one knows when an accident will occur, so speak to your insurer on the terms and conditions of your comprehensive motor policy, get to know the limits on anything to be paid, and ask yourself if the limit is adequate.
Do not assume comprehensive covers all costs arising from the damage you caused to another vehicle.
Accidents do occur, so get insured today.
#getinsured
Isaac Kwakwa – Sarpong FCII
Chartered Insurance Practitioner
+233 275 197 275
