Considering the rapid increase in the use of motorcycle and tricycles in the country for both commercial and private purposes, the need to insure them is as imperative as motor insurance. This is because motorcycles have a higher frequency and severity of risks than cars.
A motorcycle is an asset and just like any property acquired by an individual, must be secured against unforeseen circumstances. Nowadays, motorcycles are largely used for courier services by organizations, restaurants, shops, among others. Correspondingly, with this increase in usage, statistical data shows that motorcycle accidents and losses are rising at an alarming rate. Graphic.com.gh reports that 4,643 motor or cycle crashes were recorded by the MTTD in 2019. This includes bicycles, hand carts, tricycles, and motorcycles. These crashes saw 723 deaths and 3,474 injuries.
These horrifying numbers should be enough reason for motorcycle owners to make motorcycle insurance a priority.
Let’s get into the details. Motorcycle insurance is an annual policy that provides essential protection for the rider on the road as much as their safety gear. The policy covers the motorcycle plus the life, health, and safety of the rider albeit to a limited extent. The policy also includes repairs, replacement costs, medical bills for anyone injured in an accident, and damage to third party property. Motorcycles can be covered for unexpected events such as theft, fire, and flood. However, motorcyclists are encouraged to have comprehensive coverage, as it protects against risks such as vandalism, theft, and fire.
Motorcycles are prone to multiple risks much like other vehicles especially in urban areas. These risks include damage, accident, loss, and even personal accident of the driver and the passenger. High mobility and lack of discipline of some drivers and riders are factors why traffic accidents involving the popular but illegal “Okada” (commercial passenger riders) are frequent. Recently, Joy TV aired footage showing how a motorcyclist sadly lost his life after irresponsibly violating traffic rules.
With motorcycles, the impact of physical damage to the rider and the motorcycle is greater. In some instances, these accidents are fatal. In addition, motorcycle theft is more severe causing a total loss to the owner unlike cars which may have parts stolen.
As outlined above, the combination of the high level of frequency and severity reinforces the need for motorcycle insurance.
Motorcycle Insurance Coverage Options
- Bodily Injury Liability Coverage
Helps cover medical expenses compensation to pedestrians and other third parties who may be injured through the fault of the rider of the insured motorcycle.
- Property Damage Liability Coverage
Helps cover damage to another person’s property when the motorcyclist is at fault. For instance, it may help pay for repairs if when third-party vehicles, private residences, storefronts, or other structures are damaged. This coverage does not pay for the repair of the motorcycle.
- Medical Payments Coverage
Helps cover reasonable and necessary medical expenses, like ambulance rides and X-rays that are the result of an injury to the rider or their passengers.
- Personal Injury/Accident Protection
This type of coverage can help reimburse the motorcyclist for some medical bills and pay limited compensation to the rider of the motorcycle in the event of an accident.
- Comprehensive Coverage
Covers damages to a motorcycle resulting from a crash with another vehicle or other object, from fire, flooding, wind, vandalism, and theft. The owner is typically covered for repairs up to the actual cash value of their motorbike and may be required to bear of portion of the loss/claim (Excess or Deductible).
As a reminder, although common, the use of motorcycles or tricycle for the carriage of fare paying passengers is illegal in Ghana. All other uses, e.g., private, company, carriage of own goods, dispatch services etc. are all legal and owners of such motorcycles and tricycles should not leave such valuable properties uninsured. At the least, they should take up the compulsory Third Party Insurance.
>>>The writer, is a Relationship Manager at Hollard Insurance and can be reached on 0242328600