The MPs have called for a review or lawful revocation of exemptions that allow government-owned vehicles to operate without conventional motor insurance, arguing that public vehicles must have adequate insurance arrangements to protect lives, public property and taxpayers’ money.
Citing Section 3(1) of the Motor Vehicles (Third Party Insurance) Act, 1958 (Act 42), they noted that the law prohibits the use of a motor vehicle on public roads unless a valid third-party insurance policy is in force.
They further referenced Section 4 of the Act, which provides criminal sanctions for violations, including a fine of up to 250 penalty units, imprisonment for up to 12 months, or both.
The lawmakers also drew attention to Section 10, which addresses insurance obligations relating to the satisfaction of judgments arising from motor vehicle accidents.
However, they questioned the continued application of the exemption under Section 5(3) of Act 42, which permits vehicles owned by or exclusively employed in government service to operate without conventional motor insurance, subject to a GH¢200,000 security deposit per vehicle lodged with the Accountant-General.
According to the MPs, there is no evidence that the required security deposits have been made since the law came into force in 1958, raising questions about the implementation and oversight of the exemption.
They also cited the Insurance Act, 2021 (Act 1061), particularly its provisions on compulsory motor insurance and the establishment of the Motor Compensation Fund, as part of the broader legal framework requiring attention.
The lawmakers argued that the existing arrangements must be strengthened to ensure that government-owned vehicles are not left outside effective insurance protection.
They maintained that extending adequate insurance coverage to state-owned vehicles would help protect public assets, reduce the financial burden of accident-related compensation and strengthen accountability in the management of government property.
The MPs, therefore, want the relevant authorities to review the existing exemptions and ensure that public institutions meet their legal and financial responsibilities regarding motor vehicle insurance.
