The Hidden Truth About Motor Insurance in 2025: Beyond Just a Sticker

Motor insurance in Ghana has evolved significantly beyond the traditional paper sticker on your windshield. Since January 1, 2020, the Motor Insurance Database (MID) has transformed how we verify insurance coverage, recording over 580,000 electronic stickers and building growing confidence among motorists nationwide.

While displaying insurance stickers isn't explicitly stated in the Insurance Act of 2021, the verification process has become more sophisticated and secure. We can now authenticate our policies in real-time using a simple short code (**92057#), making it easier to confirm coverage validity. This digital revolution affects all state motor insurance requirements, consequently reducing the prevalence of fake insurance documents while strengthening the entire verification system.

Throughout this article, we'll explore the legal foundations of motor insurance in Ghana, how the MID is changing the landscape, and why physical stickers still matter in certain situations.

How the Motor Insurance Database (MID) is changing the game

The digital revolution of Ghana's motor insurance system began on January 1, 2020, when the National Insurance Commission (NIC) launched the Motor Insurance Database (MID). This groundbreaking initiative created a centralized repository of all motor vehicle insurance policies issued throughout the country.

The primary goal? Eliminating fake insurance stickers that had plagued Ghana's roads for years. Before MID implementation, statistics showed that out of 2.3 million vehicles registered in 2018, only one million had genuine motor insurance stickers. This massive gap left many accident victims without proper compensation.

The MID offers multiple verification methods:

• Text message confirmation: Upon purchasing valid motor insurance, motorists receive an instant SMS confirming policy authenticity

• USSD verification: Anyone can dial 92057# to check a vehicle's insurance status

• QR code scanning: Electronic stickers feature scannable codes revealing complete insurance details

These verification tools have produced remarkable results. Within just six weeks of implementation, the system registered over 78,000 newly insured vehicles. By March 2021, this number had skyrocketed to an impressive 1.4 million policies issued through the MID portal.

Enforcement has been equally robust. The NIC has donated 900 Gota phones to the Motor Traffic and Transport Department (MTTD) of the Ghana Police Service. These devices contain special security features that allow officers to instantly verify insurance validity during traffic stops.

The system benefits extend beyond enforcement. Passengers can now verify a commercial vehicle's insurance status before boarding. Moreover, the database helps track hit-and-run drivers in accident cases.

For insurance companies, the MID has curbed premium undercutting and policy undervaluation that previously made it difficult to pay claims promptly. As a result, insurers can now better fulfill their obligations to policyholders.

The NIC Commissioner described the MID as "a groundbreaking success in revolutionizing the motor insurance business in the country". Primarily designed to promote fair market conduct and ease compliance with compulsory insurance requirements, the database has essentially transformed how all state motor insurance functions in Ghana.

Why the sticker still matters in some cases

Despite the impressive digital transformation in Ghana's motor insurance system, physical stickers haven't completely disappeared from our automotive landscape. The traditional windscreen sticker continues to serve crucial purposes in several scenarios.

Connectivity challenges remain a primary reason for sticker relevance. In regions with limited digital infrastructure, individuals may lack immediate access to electronic verification systems. For many Ghanaians living in remote areas, a visible insurance sticker on the windscreen serves as practical proof of coverage where digital verification isn't consistently available.

Technical difficulties also justify sticker retention. System downtimes, whether for maintenance or due to unexpected outages, can temporarily disable electronic verification. Multiple states in the US have recognized this reality, incorporating provisions in their laws to address system maintenance periods and outages beyond insurers' control. Kansas, for example, prohibits penalties on insurers for system failures outside their control, acknowledging the imperfections of digital systems.

Furthermore, verification errors present ongoing challenges. False negatives frequently occur when drivers switch insurance companies, replace vehicles during registration periods, or have other legitimate reasons to provide proof of insurance. These data mismatches highlight why physical stickers provide a tangible backup when digital systems flag properly insured vehicles incorrectly.

Human factors likewise support sticker retention:

• Not all insurance queries are straightforward, and sometimes speaking with a real person is necessary

• Physical offices and documentation provide alternatives when technological solutions fail

• Certain stakeholders still prefer or require a tangible representation of insurance coverage

The transition to fully digital systems is undoubtedly happening, yet remains incomplete. Kenya's experience demonstrates this reality, despite implementing digital certificates, the physical certificate remained valid during the transition phase. Ultimately, while digital verification offers enhanced efficiency, physical stickers address practical challenges, particularly for the estimated 50% of people without smartphones in some regions.