Introduction

In recent years, technological innovation has transformed many sectors, and the insurance industry is no exception. A notable development in Ghana’s motor insurance sector is the introduction of the Motor Insurance Database (MID), a digital platform designed to simplify and enhance the verification of motor insurance coverage. With this technological advancement, the role and necessity of the traditional motor insurance sticker displayed on vehicle windscreens have come under renewed scrutiny.

Compulsory Motor Insurance in Ghana

In some countries, such as Ghana, it is a legal requirement to have motor insurance. The Motor Vehicles (Third Party Insurance) Act, 1958 enforces the compulsory nature of motor third-party insurance in Ghana as articulated in Section 3(1) of the Act, which reads; ‘’Subject to the provisions of this Act no person shall use, or cause or permit any other person to use, a motor vehicle unless there is in force in relation to the user of that motor vehicle by such person or such other person, as the case may be, such a policy of insurance or such security in respect of third party risks as complies with the provisions of this Act.’’