ADDRESS BY HON. AKOTO OSEI, MINISTER OF STATE, MINISTRY OF FINANCE AND ECONOMIC PLANNING AT THE OPENING CEREMONY OF THE 25TH ORDINARY SESSION OF COUNCIL OF BUREAUX OF ECOWAS BROWN CARD INSURANCE SCHEME ON MONDAY, 27TH OCTOBER, 2008

CHAIRMAN, COUNCIL OF BUREAUX ECOWAS BROWN CARD INSURANCE SCHEME,
CHAIRMAN, GHANA NATIONAL BUREAU
HON. DR. IBN CHAMBAS, PRESIDENT, ECOWAS COMMISSION,
SENIOR GOVERNMENT OFFICIALS,
REPRESENTATIVES OF INTERNATIONAL ORGANISATIONS,
HON. MEMBERS OF COUNCIL OF BUREAUX,
MEMBERS OF THE DIPLOMATIC CORPS,
REPRESENTATIVES FROM INSURANCE COMPANIES IN THE ECOWAS SUB-REGION,
INVITED GUESTS,
MEMBERS OF THE MEDIA,
LADIES AND GENTLEMEN,

It is an honour for me to be part of this 25th Annual Session of the Council of Bureaux of ECOWAS Brown Card Insurance Scheme, which opens today.

On behalf of his Excellency the President Mr. J. A. Kuffour, the Government and the people of Ghana, I welcome you all to Ghana to attend this important Council Meeting. I also wish to thank the ECOWAS Brown Card Council of Bureaux for choosing Ghana to host this 25th Ordinary Session.

As the sector Ministry responsible for Insurance, I feel proud that those of you gathered here represent ECOWAS Insurance leadership whose innovative insurance products are geared towards facilitating the free movement of persons, goods and services for sub-regional integration, one of the reasons for the Protocol. It is for this reason that I believe the theme “ECOWAS BROWN CARD INSURANCE SCHEME: 25 years of facilitating the free movement of persons, goods and services for regional integration” is appropriate.

Mr. Chairman, in 1975 the Heads of State and Government of the Member States of the Economic Community of West African States (ECOWAS) met in Lagos, Nigeria with the aim of fostering and accelerating the economic and social development of the West African States. The idea was to create a sub-regional organization driven by the need for a strong and collective force facilitating a common trade policy, capable of addressing economic concerns among its members.

The dream of the founding fathers was to have an expanded, integrated market made up of sixteen West African National economies serving as the engine of growth and development. The community became operational in 1977, and since then trade development has been central to the cooperation programmes of ECOWAS.

Mr. Chairman, you will agree with me that integration, trade, economic and social development cannot be achieved without effective transportation and communication systems. Over the years, remarkable achievements have been made by ECOWAS in the free movement of goods, persons and services. The ECOWAS Brown Card Insurance Scheme which was established by the Protocol A/P1/5/82, and signed on 29th May 1982 in Cotonou, Benin, created the international motor vehicle third party liability insurance with the following objectives, among others:
(i) To ensure a fair and prompt compensation to victims of motor accidents
(ii) To facilitate the settlement of compensation to motorist from ECOWAS sub-region after the occurrence of motor accident.

Ghana ratified the Protocol in 1985 and brought into existence the “MOTOR VEHICLE (THIRD PARTY INSURANCE) (ECOWAS BROWN CARD) LAW, 1986 P.N.D.C.L. 141

In establishing the Brown Card Scheme, ECOWAS recognized the rapid increase in international road traffic in the sub-region and the problems associated with motor vehicle third party liability. It was clear that a system was needed which would not only promote the free movement of people, goods and services in the sub-region and guarantee fair and prompt compensation for damages sustained as a result of accidents by road accident victims, but would also encourage the development of trade and exchange of tourists between West African nations. On the occasion of the 25th Annual Session of the Council of Bureaux we need to salute heads who signed the Protocol establishing the scheme as a necessary complement to the free movement of goods, persons and services.

Mr. Chairman.
The settlement of international motor claims under the ECOWAS Brown Card Insurance Scheme, I understand is saddled with a number of challenges, notably,

delays in settlement of motor claims among the various National Bureaux of the Scheme
• The harassment and often abusive and arbitrary arrest of foreign drivers in certain ECOWAS countries.
• The constant dispute among insurers on the issue of liability and quantum on third party injury and property damage claims
• The delay or non payment of annual contribution by some National Bureaux to the Permanent Secretariat for the smooth and effective running of the Secretariat
• Difference in Motor Vehicle Third Party Liability insurance laws and compensation regime within the sub-region.

Mr. Chairman, with the above challenges, we are obviously not meeting the objectives of the Scheme which was intended to facilitate the Protocol. I hope that this session in Accra will offer you the opportunity to critically examine the scheme and formulate solutions aimed at making the scheme more efficient and competitive.

On this note, I will like to make a few suggestions that I hope will revitalize the scheme, and help in the effective implementation of the scheme to bring to fruition the dreams of the founding fathers and also serve as a source of hope for victims of road accidents.

Mr. Chairman, we would need an extensive public information and sensitization campaign on the Brown Card Scheme to help our citizens understand the need for the scheme.
• The ECOWAS Commission to include the insurance sector in its priority action programmes…………………
• The National Bureaux should put in place security guarantee required by the Protocol…………………………
• Strengthen the partnership between the ECOWAS Commission, the Brown Card Scheme and other similar integration institutions.
• Harmonisation of the Compensation Limits in respect of victims of motor accidents within the sub-region

The National Bureaux and Insurance Companies play a very important role in the process of the Brown Card Scheme through prompt settlement and payment of compensation to victims of international road accidents, hence they must work diligently to make the Scheme successful, and the Protocol governing the scheme must be enforced by the member states.

It is about eight years since Ghana hosted the Council of Bureaux Meeting in October 2002. We, on our part, that is the Ghana Government, are prepared to put the necessary framework in place to regulate the Harmonized Compensation system which we understand you are feverishly working on. We shall liaise with member governments to promote full implementation of the system. Ghana will continue to support and consolidate the gains of ECOWAS. The hosting of this session by Ghana is a clear indication of Ghana’s commitment to the success of the scheme.

I once more wish to extend sincere appreciation and thanks to ECOWAS for its cooperation and efforts in facilitating the realization of this event. I would also like to thank all the participants who have made the effort to be present at this forum. I wish you best of luck in your deliberations and presentations.

On this note, I declare the 25th ordinary session of the Council of Bureau of the ECOWAS Brown Card Insurance scheme opened.

Thank you.