September 24, 2020
Clickongh

Stop issuing insurance policies to some motorcycles for commercial purposes – NIC cautions

The National Insurance Commission (NIC) has directed insurance companies to desist from issuing vehicle insurance policies to cover motorcycles and tricycles used for commercial purposes, including the carriage of fare paying passengers.

According to the NIC, the issuance of vehicle insurance policies to cover motorcycles and tricycles used for commercial purposes is illegal.

In a statement issued by the NIC, Deputy Commissioner of Insurance, Michael K. Andoh, stated that Insurance Companies are only expected to issue policies to only courier and delivery services.

“We wish to bring to your attention that regulation 128 of the Road Traffic Regulations, 2012 (Legislative Instrument 2180) prohibits the usage of motorcycles and tricycles to carry fare-paying passengers and also prohibits the DVLA from licensing motorcycles and tricycles to be used to carry fare-paying passengers.”

“The Commission hereby directs all insurance companies to desist from issuing insurance policies to cover motorcycles and tricycles used for all commercial purposes except courier and delivery services,” the Commission noted in a statement.

The Commission further added that “henceforth, accident victims who were fare-paying passengers on motorcycles or tricycles will not qualify for compensation from the Motor Compensation Fund.”

Below is the full statement from the NIC:

Source: Business