By Felix K.B. AFRIFA
The Driver and Vehicle Licensing Authority (DVLA), through its press release dated 3rd October 2025, announced its intention to implement a new vehicle registration framework under which registration numbers will be assigned to individual vehicle owners rather than to specific vehicles.
This initiative, expected to commence in 2026, is said to be aimed at promoting “security and safety on our roads” and ensuring that a unique vehicle number can be linked to an individual.
The proposed change represents a major departure from the current system and carries significant implications for the operations of insurance companies in Ghana. The motor insurance industry relies heavily on vehicle registration numbers as the primary means of identifying insured vehicles, both for underwriting and claims management purposes.
While the stated objective of enhancing road safety and improving vehicle traceability is laudable, the real benefits of this proposal are not readily apparent. Beyond the idea of linking registration numbers to their owners, there is no clear articulation of the specific problem the DVLA seeks to solve.
The current registration and insurance systems already enable effective identification of vehicles, their owners, and their insurance status. In its present form, and without further clarity, the proposal risks attempting to fix a problem where none exists, while introducing significant operational and technological complications into a system that, by all practical standards, functions efficiently for all stakeholders – particularly insurers.
This paper seeks to analyze the implications of the proposed policy on the motor insurance sector, focusing on its effects on underwriting, policy renewals, claims management, and insurers’ IT systems. It concludes with recommendations for further engagement and consultation between the DVLA and key industry stakeholders before any rollout of this new policy.
Overview of the Current Motor Insurance Framework
Under the current system, the motor insurance underwriting process begins with the completion of a proposal form by the insured, providing key details about the vehicle to be insured such as:
- Vehicle registration number;
- Chassis number (VIN); and
- Make, model, and cubic capacity.
Using this information, insurers issue an insurance certificate and a sticker to the insured, and these details are subsequently uploaded to the Motor Insurance Database (MID).
The vehicle registration number serves as the unique identifier for verifying the existence and validity of insurance on a particular vehicle. Both the public and the Police can verify the insurance status of a vehicle by dialing the USSD code *920*57# and entering the vehicle registration number.
The system immediately displays the vehicle’s details (registration number, make, model, and insurance validity period), thereby confirming the existence of a valid policy.
Importantly, insurance is not transferable. Once a vehicle is sold, the insurance ceases to operate, and the new owner must obtain a new policy for the acquired vehicle. This simple and transparent system ensures clarity and accountability for both insurers and insureds. The following outlines the implications on the motor insurance framework that may result from DVLA’s proposed plan.
Implications on Underwriting
The proposed system, under which registration numbers attach to individuals rather than vehicles, could fundamentally disrupt the underwriting process. Presently, insurers assess and price motor risks based on information that is uniquely tied to a particular vehicle.
When a registration number becomes transferable across vehicles:
- The same number may be associated with multiple vehicles of different make, model, or risk profile over time.
- Historical claims data may become difficult to link accurately to a specific vehicle.
- Insurers could face challenges in tracking a vehicle’s claims or accident history, leading to potential mispricing of risks or duplication of records.
Additionally, if an insured sells a vehicle and transfers their personalized registration number to a new vehicle, the new vehicle may appear to have valid insurance even when it does not, especially if it shares similar characteristics (make, model, or colour) with the old vehicle. This could undermine the reliability of insurers’ core systems and increase the risk of inadvertent or deliberate insurance fraud.
To mitigate these challenges, insurers may need to reconfigure their databases to make the chassis number (VIN) the primary identifier of insured vehicles rather than the registration number. This would, however, require significant system upgrades, retraining, and new verification protocols, all of which come at a cost.
Implication on Policy Renewals and Management
Another major operational issue concerns policy renewals. Currently, insurers use the vehicle registration number as a key reference in sending renewal reminders to policyholders. Renewal notifications – sent via SMS, email, or printed letters – typically include the vehicle registration number as the identifying reference for the expiring policy.
With a personalized number plate system:
- The insured could have transferred the same registration number to a different vehicle before renewal.
- Renewal notices referencing the old vehicle’s registration number might inadvertently trigger renewal for a vehicle that has already been sold.
- The new owner of the sold vehicle, now with a different registration number, would not receive any renewal reminder at all.
This creates a risk of renewal errors, potential lapses in coverage, and confusion for both insurers and insureds. Insurers would need to redesign their customer relationship management (CRM) and policy renewal systems to ensure that renewal notifications are based on the VIN or chassis number rather than the registration number.
This will again involve significant IT and administrative reconfiguration, including changes to automated messaging systems, template designs, and renewal workflows.
Implications on Claims Management and Fraud Prevention
The claims process would also be affected. When an accident occurs, the vehicle registration number is a key reference point in the police report, which insurers use to determine whether the vehicle involved in an accident is indeed the one insured under the policy.
With personalized number plates:
- A vehicle that has changed ownership may bear a registration number belonging to the previous owner.
- The same number may later appear on a different vehicle altogether.
- Insurers may have to conduct more extensive investigations to determine which vehicle was actually involved in the accident, when the plate was transferred, and whether insurance was valid at that time.
This would complicate the process of establishing liability, delay claim settlements, and increase administrative costs. The risk of fraudulent claims could rise as individuals might exploit plate transfers to misrepresent ownership or policy coverage.
Impact on IT Systems and the Motor Insurance Database (MID)
At present, the MID links registration numbers to insured vehicles, enabling real-time verification through the USSD platform. If registration numbers become tied to individuals rather than vehicles, the current architecture of the MID will become incompatible with the new system.
Insurers and the NIC would need to redesign the database to accommodate:
- Multiple vehicles linked to the same registration number over time.
- Plate transfer histories that can be cross-referenced with the corresponding VINs.
- Enhanced data synchronization across all insurers to avoid conflicts or duplication.
Such a redesign would demand high levels of automation, advanced data integration, and considerable financial investment. Ghana’s existing technological infrastructure, while improving, may not yet be robust enough to support such a complex data ecosystem without risk of systemic errors or lapses in real-time verification.
If not properly implemented, the reliability of roadside insurance verification, one of the key achievements of the MID, could be compromised. The police and the general public may no longer be able to verify a vehicle’s insurance status simply by checking its registration number.
Broader Considerations
While the DVLA’s stated goal of enhancing security and traceability within the transport ecosystem is commendable, the policy rationale for the proposed change remains unclear.
The current system already allows the DVLA, the police, and insurers to identify both vehicle and owner information effectively. Without clear evidence of additional benefits or a strong technological foundation, introducing personalized number plates as the norm rather than the exception could create more complexity than clarity.
Furthermore, examples from other jurisdictions show that, just as already exists in Ghana, personalized number plates typically exist as a premium service, not as a national standard. Should Ghana proceed with this reform, it may become the only country in the world where personalized registration numbers are the default system, an ambitious move that requires careful preparation and broader stakeholder consultation and alignment.
Recommendations
Given the significant operational, technological, and legal implications, it is recommended that the DVLA pauses the implementation of the proposed personalized registration system to allow for:
- Comprehensive stakeholder consultation involving the DVLA, National Insurance Commission (NIC), Ghana Insurers Association (GIA), Chartered Insurance Institute of Ghana (CIIG), and other key players in the transport and security sectors.
- Technical feasibility studies to assess system readiness, data integration requirements, and the costs of transitioning to the new model.
- Pilot testing of the proposed system on a limited scale before nationwide rollout, to identify potential risks and operational bottlenecks.
- Alignment of regulatory frameworks to ensure consistency between the DVLA’s registration protocols and the insurance industry’s compliance and verification systems.
Conclusion
The DVLA’s proposal, while innovative in intent, carries far-reaching implications for Ghana’s motor insurance ecosystem. The industry’s underwriting, claims, and data management processes are all built around a vehicle-centric registration model that ensures efficiency, accountability, and ease of verification.
Transitioning to a personalized registration system without due consultation and technological preparedness could disrupt these processes and weaken the gains made in insurance compliance through the MID.
A collaborative, consultative, and phased approach will be critical to ensuring that the proposed reform, if pursued, enhances, rather than undermines, the integrity of Ghana’s vehicle registration and insurance systems.
The writer is a lawyer, insurance practitioner, and author of three seminal books on insurance: The Essentials of Risk and Insurance, Fundamental Principles of Insurance Law, and Motor Insurance Law and Practice.
