A GNA feature by Godwill Arthur-Mensah
Accra, Nov. 10, GNA–A road crash does not discriminate between a private car and a government vehicle. The pain of a broken limb, the loss of a breadwinner, or the financial burden of medical bills remains the same regardless of the ownership of the vehicle involved.
Yet in Ghana, while private motorists risk fines, imprisonment and other sanctions for driving without valid third-party insurance, state-operated vehicles have, for decades, enjoyed a legal exemption from compulsory third-party insurance.
That long-standing anomaly is now under scrutiny following a rare bipartisan intervention in Parliament, where Nelson- Rockson Dafeamekpor, Majority Chief Whip and Member of Parliament for South Dayi, and Frank Annoh-Dompreh, Minority Chief Whip and Member of Parliament for Nsawam-Adoagyiri, in a joint statement on the floor of Parliament on Wednesday, November 4,2026, called for all government vehicles to be comprehensively insured. The two legislators also called for the repeal of legal provisions that exempt state-operated vehicles from mandatory third-party insurance.
Their intervention has reignited a national conversation about accountability, social justice, fiscal responsibility and the protection of road crash victims.
The Law Behind the Exemption
Ghana’s Motor Vehicles (Third Party Insurance) Act, 1958 (Act 42) makes it an offence to use a motor vehicle on a public road without a valid third-party insurance policy. The law was enacted to ensure that victims of road crashes can obtain compensation for death, bodily injury and property damage.
However, Section 5(a) of Act 42 exempts vehicles owned by the Government or exclusively employed in government service when used for official purposes from the compulsory insurance requirement.
Ironically, the same State that compels a taxi driver, trader, commercial driver or motorcycle owner to purchase insurance has exempted itself from that obligation.
The issue was highlighted on the floor of Parliament when lawmakers questioned whether the exemption still serves a useful purpose in a modern economy where road crashes continue to rise and compensation claims against the State are increasing.
Further strengthening the case for reform, Rockson-Nelson Kwami Dafeamekpor pointed to provisions of the Insurance Act, 2021 (Act 1061), particularly Section 220, which reinforces compulsory motor third-party insurance for vehicles operating on public roads.
A National Road Safety Crisis
The debate is unfolding against the backdrop of worsening road safety statistics.According to figures cited in Parliament from the National Road Safety Authority (NRSA), Ghana recorded 14,743 road crashes and 2,949 deaths in 2025, the highest annual fatality toll in 35 years. Another 16,714 persons suffered injuries during the period. Road crashes cost the economy more than US$230 million annually, representing approximately 1.7 per cent of Gross Domestic Product.
Government vehicles, including ambulances, school buses, official saloon cars, pickups and security vehicles, travel on the same roads and are exposed to the same risks as privately owned vehicles.
Yet many of these vehicles remain uninsured.
The human cost behind the statistics
Insurance debates often focus on laws, policies and finances. Lost in those discussions are ordinary Ghanaians whose lives are changed forever after road crashes.
One such case involved Madam Nyarko Boadiwaa, who sustained serious injuries after a tipper truck accident at Asamankese in the Eastern Region. After seeking compensation through insurance channels, she discovered that the vehicle involved had not been insured. She was forced to pursue legal action to recover medical costs exceeding GH¢4,000.
Her experience reflects the predicament many road crash victims face when insurance protection is absent. Rather than relying on a structured compensation system, victims must often engage in lengthy legal battles while paying medical bills from their own pockets.
Similarly, Madam Rose Atsu suffered severe injuries in a road crash near Asikuma in the Asikuma-Odoben-Brakwa District of the Central Region and incurred substantial medical expenses, including surgery and prolonged treatment. Her case underscores how accident victims can face years of financial and physical hardship while pursuing compensation.
Parliamentarians also referenced a GETFund school bus crash near Koforidua in July 2024, where the vehicle reportedly had no insurance cover, leaving victims without insurance benefits.
For families already struggling with hospital bills, loss of income and emotional trauma, the absence of insurance can deepen suffering and delay justice.
Why Uninsured Government Vehicles Create Liabilities for the State
For decades, governments have defended the exemption largely on the grounds that the State can compensate victims directly rather than purchase insurance policies.In May 2018, Mr Yaw Osafo Maafo, who was then the Senior Minister, on the sidelines of the 45th Insurance Conference and General Assembly, while discussing plans to increase insurance penetration in Ghana, said the government vehicles were not insured because the State was prepared to meet compensation costs itself.
However, critics argue that the arrangement amounts to “self-insurance without a fund.”
In practice, when a state-owned uninsured vehicle causes injury, death or property damage, victims often have to petition ministries, sue the Attorney-General or obtain a court judgment before compensation is considered. This process can take months or even years.
The consequences for the State include:
i Judgment debts
Where victims successfully sue the Government, compensation and legal costs become liabilities payable from public funds. These payments frequently arise years after the incident, sometimes with accumulated interest.
ii Unbudgeted expenditure
Unlike insurance premiums that can be planned annually, crash-related compensation may arise unexpectedly, forcing the Government to divert scarce resources from other priorities.
iii Cost of repairs and replacements
Without insurance, every damaged ambulance, ministry vehicle, school bus or official car must be repaired or replaced entirely at the State’s expense.
iv Delayed justice for victims
Insurance creates a direct avenue for compensation. Without it, victims must depend on bureaucratic processes and litigation.
v Erosion of public confidence
Citizens may question why the State enforces compulsory insurance on private motorists while exempting itself from the same legal obligation.
Evidence of a Systemic Problem
Parliament was told that findings cited by the Public Accounts Committee indicated that out of more than 18,000 government vehicles, between 98 and 99 per cent lacked insurance cover.
The issue extends beyond ordinary government vehicles.The Minister of
Health,.Mr Kwabena Mintah Akandoh, disclosed in a media interview in 2025 that the national ambulance fleet inherited by the current NDC administration was uninsured, exposing government assets to significant financial risk whenever crashes occurred.
Such disclosures raise concerns about the vulnerability of public assets and the absence of risk-management mechanisms across government institutions.
Parliament’s Bipartisan Solution
The proposal from the two Chief Whips goes beyond merely purchasing insurance.
Among others, they have recommended that:
•The exemption under Section 5(a) of Act 42 be amended or repealed.
•All Ministries, Departments and Agencies insure their fleets.
•Adequate budgetary allocations be made annually for insurance premiums.
•Government vehicles be registered on the Motor Insurance Database.
•A nationwide audit be conducted to establish the actual number and insurance status of state vehicles.The issue has since been referred by Mr Bernard Ahiafor, the First Deputy Speaker of Parliament, to the Ministers responsible for Justice and Finance for consideration.
Time for Reform
The parliamentary debate has exposed a contradiction at the heart of Ghana’s insurance regime: the State requires citizens to insure their vehicles yet exempts itself from the same obligation.
The exemption may have appeared reasonable in 1958 when Act 42 was enacted.
Today, however, the scale of government vehicle fleets, the rising number of road crashes, increasing compensation claims and concerns over judgment debts suggest that the provision has outlived its usefulness.
If insurance serves as a social protection mechanism for citizens, then victims of crashes involving government vehicles deserve the same protection.
Recommendations
1.Repeal Section 5(a) of Act 42 to end the blanket exemption for government vehicles.
2. Establish compulsory third-party insurance for all state-operated vehicles within a defined transition period.
3.Create a central fleet insurance scheme managed through the Ministry of Finance to leverage bulk premiums and reduce costs.
4.Publish annual insurance compliance reports covering all MDAs.
5.Create a dedicated accident compensation fund to handle claims pending full implementation of insurance coverage.
6.Strengthen monitoring by the National Insurance Commission and Auditor-General to ensure compliance.
Ultimately, insuring state-operated vehicles is not merely an administrative requirement. It is a question of justice, accountability, and equal treatment under the law. When government vehicles share the same roads with citizens, they should also share the same responsibility to provide protection when accidents occur.
GNA
Edited by Kenneth Odeng Adade
Writer: Godwill Arthur-Mensah
Writer’s email: [email protected]