Insurance is a vital component of car ownership and forms an inalienable part of the automobile industry. The demand for a reliable insurance cover has increased as Ghana’s automobile industry charts a new territory, by assembling vehicles in the country, under the Automobile Assemblers Association of Ghana (AAAG).
In Ghana, motor insurance is a legal requirement for all car owners. The policy covers the owner from any financial losses incurred as a result of unforeseen circumstances like an accident, natural disaster, theft, and many more.
This makes the importance of a motor insurance policy not to be overemphasized. In a world full of uncontrollable events, one must be ready for any mishap at any given time. An unforeseen event like a car accident can happen any- where, at any time, and to anyone – regardless of who’s in the vehicle. There- fore, protecting vehicle owners and others is one of the most significant rea- sons to get motor insurance.
Moreover, the policy primarily acts to protect one’s car, bike, or other vehicles. With a comprehensive motor insurance policy, rest assured that any damages caused to the vehicle during an accident are covered by the insurance provider.
Also, the policy manifests in third-party involvement. It ensures that if a vehicle owner is involved in an accident that involves a third party– whether a pedestrian, another vehicle, or someone’s proper- ty, the expenses to repair, death of or bodily injury to any person, payment for reasonable medical expenses, etc. is covered by the provider.
Last but not least, the policy covers legal costs as well. More often than not, victims of accidents attempt to sue for damages, death, or injuries. In the event the vehicle owner is facing a lawsuit, a motor insurance policy protects one’s wallet from incurring these expenses. For example, with a comprehensive motor insurance cover, all legal costs and expenses incurred with written agreement in de- fending any court proceedings arising from an event for which cover is provided, are recoverable under this policy.
All these sums up to make Star Assurance the trusted and preferred insurance company for many car owners by protecting vehicle owner’s finances and reducing their liabilities, with ‘no long things’ stories.
Star Assurance Vehicle Insurance Policy Differentiating Factors
Star Assurance’s tailor-made motor products are premeditated with the changing growing needs of its customers in mind. It is the only insurance company that offers extreme flexibility with Motor-policy-bespoke covers. The company offers varied Combo Motor policies for its high net-worth clients whilst maintaining and delivering a cut-to-the chase-basic cover for the lower-level demand.
To satisfy all, Star Assurance has just introduced a value-driven Motor Third Party Xtra for the burgeoning lower and middle-income class. This product provides cover for the insured’s own vehicle for limited own damage losses to side mirrors, windscreen, window glasses, vent glasses, sunroof, and inside rearview mirror.
Star Assurance with the vision of partnering with its cherished customers to be the true definition of insurance and creating delightful experiences, the company takes pride in the partnerships achieved to make its motor insurance easily accessible to its insuring public. One such solid partnership is the Star/Total collaboration in which one can access Star Motor Insurance from any of Total Energies outlets within the country. One can just drive to any of Total Energy’s outlets for his/her motor insurance needs.
Furthermore, from the comfort of one’s home, one can also purchase a Star Assur– ance motor insurance policy through the company’s digital chatbot, ‘Pokuaa’. It allows one to use the WhatsApp platform to access the company’s insurance products and services and motor insurance for that matter and instantly gets cover.
Also, Motor insurance claims can be reported and monitored using this same digital chatbot, Pokuaa. Her services can be accessed through USSD. Chat with Pokuaa on 0242426160 or by dialling *713*222#.
It is worth noting that Star’s nouvelle 24-hour Motor Claims Settlement has also been a delight to its esteemed motor insuring public.
Leveraging AAAG to Improve Products and Services
Through the initiative of the Automobile Assemblers Association of Ghana (AAAG), Ghana started assembling its own cars. As the AAAG assembles differentiated products, it wants to make sure insurers have the capacity to insure newer/different technology. It also wants to minimize friction in the insurance purchase journey and create continuous revenue streams from the buyers. This is where Star Assurance comes in.
As Insurers, because insurance plays a role in car ownership, (mostly, a customer is renewing an insurance policy every 12 months.), the company saw a gap in the ownership experience. It sees insurance as the glue that’s bringing the Assemblers and the customers together for a really powerful collaboration.
Working closely with the Automobile Assemblers Association of Ghana (AAAG), Star Assurance intends to benefit from access to new data on driving behaviours, and seeing how it affects losses as automation advances and interest in brand-new vehicles surge. The company hopes to acquire a natural feedback loop on driving patterns, effective- ness of safety features, etc., which allows it to further improve its products to meet customer expectations. It also intends to harness some partnerships to gain and maintain market share in this highly competitive personal auto space. Offering insurance products directly and at the point of a vehicle sale brings an avenue of distribution with potentially lower expenses. Star Assurance intends to do this with an eye on aligning values and strategies.
Challenges Confronting Motor Insurance Market, Star Assurance Role in Curbing Them
Insurers face several challenges related to motor insurance in the Ghanaian insurance industry. Premium undercutting, otherwise called underpricing and the issue of fake motor stickers continue to deny well-meaning insurance companies of quality premium charges although the Motor Insurance Database (MID) has been established to curb these menaces.
The industry also faces the challenge of unscrupulous persons printing fake stickers to sell to unsuspecting customers at cheaper premiums.
Again, Motor insurers face rising claims costs, such as more expensive repairs due to increasingly sophisticated vehicles and costlier spare parts and raw materials like vehicle paint.
Concerns have also recently been raised that cost-of-living pressures could potentially drive up some cases of criminal behaviours when it comes to motor insurance claims. A rise in cost-of-living and resulting financial hardships can often drive people to commit fraud. Motor insurers expect fraudulent insurance claims to increase as the cost-of-living crisis deepens.
As one of the leading insurance companies in the industry, Star Assurance tries to always strive to be a step ahead by; sensitizing its clients and the public, in general, to shy away from very cheap insurance premiums as they might not necessarily be on the right cover; reporting motor accidents to the company as soon as possible – even if they are not at fault and call on the police to report any accident, and obtaining a police report.
Also, dedicating a team like the Star Assurance special insurance fraud investigation team within its claims unit to fighting insurance fraud and deterring fraud before it happens by carefully vetting the information submitted on applications is another way of reducing fraudulent claims.
Dealing With Delay in Processing Compensations
Star Assurance understands that a prompt and efficient claims process is crucial for customer satisfaction. As such, it prevents delays and provides quicker compensation, by deploying various strategies including efficient claims handling, 24-hour claims settlement plan, and regular communication and transparency.
Meanwhile, with technology becoming the ‘new definition’ for business growth, Star Assurance has leveraged technology to enhance its insurance operations and increase customer experience, particularly in the area of vehicle insurance.
Through Digital Policy Management, online payments, and proactive personalized communication, the company has continuously improved its services over the years.
With its cutting-edge digital assistance platform, Pokuaa, both current and potential customers can conveniently purchase, renew, pay premiums, report claims, and manage their vehicle insurance policies using their mobile devices. This streamlined digital approach offers added convenience to customers and significantly reduces administrative burdens for the company.
Capturing the Bigger Motor Insurance Market Presented by AfCFTA
The establishment of the Africa Continental Free Trade Agreement (AfCFTA) has set the tone to make Africa a united trade hub that will foster immense eco- nomic growth, thus creating huge potential and growth opportunities for manufacturing and service industries like “the insurance industry where we fit”.
Currently, in the insurance industry, vehicles are only able to move within the ECOWAS Sub-region with the ECOWAS Brown Card Insurance Scheme. This scheme serves as a common insurance cover against Third Party liabilities that visiting motorists may incur while they drive across various national boundaries of ECOWAS.
Mindful of the bigger bloc, Star Assurance intends to capture the motor insurance market presented by AfCFTA by collaborating with other stakeholders already in the insurance industry. The existence of Pan-African Insurance and Reinsurance companies allows for an extensive reach and wider insurance coverage across several borders for vehicles moving from Ghana to other African countries.
Advice to Prospective Vehicle Insurance Policy Buyers
First and foremost, before an individual considers a vehicle insurance policy, one needs to understand the coverage types needed; get quotes for a few models to budget accordingly; acknowledge that the older the vehicle, the higher the premium for coverage other than Third Party.
Moreover, one must note that motor insurance will not come to one’s aid if the individual is under drug influence whilst driving; if the vehicle is used for any illegal activity or any other activity that the policy does not conform to; and if the individual does not have a valid driving license.
Therefore, getting a reputable and reliable insurance company like Star Assurance Co. Ltd. which will always be your solid partner at all times, is a plus to any policyholder.
Other Equally Important Insurance Policies Available at Star Assurance
Star Assurance also offers a wide range of insurance products other than motor insurance. It offers Corporate Insurance, SME and personal products for businesses, individuals and families.
However, some of the products most needed by the Automobile Assemblers are categorized into Engineering, Accident, Fire and Liability, then to SME and Personal products.
Under the Engineering Products, Star Assurance Erection All Risks (EAR) policy offers comprehensive and adequate protection against all risks involved in the erection, assembling, testing and commissioning of machinery, plant and steel structures of any kind, as well as third-party liability in respect of property damage or bodily injury arising in connection with the execution of the contract.
Projects most appropriately insured under our EAR include car assembling plants, power & chemical plants, telecommunication towers, boilers and railways lines involving mainly steel and metal and where the erection, assembly, and installation of the machinery/equipment are manufactured in the factory and brought to be assembled on site.
The company designs customized policies to cover all forms of civil engineering projects like factories, airports, bridges, roads, schools, residential & office buildings, etc. and other special assignments.
Other Engineering products include Star Boiler and Pressure Vessels Policy, Star Machinery Breakdown Insurance (MB /MI) Policy, and Star Electronic Equipment Insurance (EEI) Policy. Furthermore, the company offers Accident Policies. These include policies such as Star Goods-In-Transit Policy, Star Marine Cargo Insurance Policy, Star Cash-In-Transit Policy, and Star Fidelity Guarantee Policy.
Meanwhile, under the Fire Policy, Star Assurance has the Star Assets All Risks Policy. This is a comprehensive packaged policy providing cover against all risks/perils other than those which are specifically excluded in the policy. The company pays to the Insured the value of the property at the time of the happening of its accidental physical loss or destruction or the amount of such accidental physical damage or at its option reinstate or replace such property or any part.
Cover can be extended to cover the collapse of the building, material damage and legal liabilities to third parties as the law makes it mandatory if it is a commercial property.
Sections 218 and 219 of the Insurance Act 2021 (Act 1061) make it compulsory for all private buildings under construction or completed and used for commercial purposes to obtain Fire insurance. The legal liabilities as the owner of the premises in respect of loss of or damage to property, bodily injury or death suffered by third parties are also covered up to a limit of GHC20,000.
Also, Star Assurance offers Liability Products to the insuring public. Some of the Liability products include Star Public & Product Liability, Star Employers Liability/ Workmen’s Compensation, and Star Professional Indemnity.
In addition, Star Assurance also offers personal lines insurance like Star International Travel Insurance, which provides cover for travellers when they leave the shores of Ghana against a host of unforeseen events that may occur in the course of their trip; Star Personal Guard, a 24-hour worldwide policy to pro- vide compensation to the insured or his legal representative for Death, Permanent and Temporary Total Disablement, and Medical Expenses; Star Comprehensive Homeowners, grants cover for all accidents that are likely to occur at home, loss or damage to the individual’s private dwelling house, as well as the household goods and personal effects; and the Star Home- owners Xtra which is similar to the later, with the only difference being that the Star Homeowners Xtra policy comes with an automatic life cover at no additional cost.