When Policemen Become Insurance Agents: The Street Madness of Ghana’s Accident Settlements

Walk through the streets of Accra on any weekday morning and you’ll likely meet the same chaotic scene that plays out across the city: two cars in the middle of the road, hazard lights blinking, traffic piling up, and two angry drivers arguing over whose fault it is. Sometimes, one holds a steering wheel in hand like a weapon of authority; the other has already called “someone” — often, that someone is a policeman.

Moments later, a patrol vehicle arrives. The officers step out, assess the situation for a few minutes, and then — instead of directing both parties to their respective insurance companies — they start mediating who should pay whom. In some cases, they even decide that one driver must fix the other’s bumper that same day.

And just like that, your insurance premium, your policy, and the entire concept of motor insurance vanish into thin air.

The Street Version of “Insurance”

In the streets of Accra as researched by Accra Street Journal, motor insurance has taken a new form — a street version created by misunderstanding, impatience, and manipulation. For many drivers, insurance is something you show a policeman at a checkpoint — not something you rely on when you actually need it. So, when an accident happens, drivers immediately jump into blame and compensation mode. They want “justice” on the spot.

The policeman, trying to control the situation, often becomes judge, mediator, and insurance adjuster.
It’s not uncommon to hear a policeman say:

“You are at fault. Repair his car or I will take you to the station.”

The irony? Both drivers probably have active insurance policies. Both pay premiums to companies that exist for this exact reason — to handle claims professionally and fairly.

When Police Play Claims Adjuster

Let’s be honest — some police officers have turned accident scenes into small “settlement courts.” They collect statements, check licenses and insurance papers, but instead of directing both parties to their insurers, they decide who pays. In some cases, they even escort the “at-fault” driver to the mechanic shop for repairs.

There are stories seen by Accra Street Journal of drivers who, in panic or fear, hand over cash on the spot — or have their cars towed away until they “settle.” While many officers mean well — wanting to clear traffic or avoid escalation — this practice not only undermines the insurance system but also breeds mistrust and manipulation.

The Manipulation Game

Some drivers know the loopholes and play the game well. They know a few policemen at the nearest station, and once there’s a minor accident, they call their “connection.” Before long, the matter is no longer about right or wrong — it’s about who has the better contact.

You’ll hear statements like:

“My brother is at the station; you will pay today.”

And because many drivers don’t understand their insurance rights, they panic and pay. Some even forget that they have third-party or comprehensive cover that can sort the entire issue legally.

Others also fear the bureaucracy of insurance claims — the paperwork, the waiting time, and the perception that “insurance doesn’t pay.” So, they prefer to “sort it” quickly on the street — an attitude that keeps feeding the broken system.

What the Law Actually Says

Let’s take a step back to what the law states. Under Ghana’s Road Traffic Act, 2004 (Act 683) and Insurance Act, 2021 (Act 1061) as researched by Accra Street Journal, every vehicle on the road must have at least a third-party motor insurance policy. That policy is designed to protect the other person when you’re at fault — not you.

If you hit another driver, their damage should be covered by your insurance, not by you personally. The process requires:

1. Reporting the accident immediately to the police for an official report.

2. Presenting that police report to your insurance company.

3. The insurer investigates the claim and, if valid, pays the other party or arranges repairs.

This process ensures fairness, documentation, and accountability. The police’s role in that sequence is to record and investigate, not to adjudicate or collect money.

Why Drivers Avoid Their Insurers

So why are so many Ghanaian drivers avoiding their insurers and resorting to police street settlements? Here are a few realities gathered by Accra Street Journal that make the system weak:

1. Ignorance: Many drivers simply don’t understand what their insurance covers. Some think third-party means “you must pay first and go for refund later,” which is false.

2. Fear of delay: Some insurance companies take weeks to process claims, especially when documentation is incomplete.

3. Distrust: Some drivers have experienced denial of claims due to “technicalities,” making them lose faith in the system.

4. Street convenience: It’s faster to settle on the road — even if it’s illegal — than to go through forms and waiting.

But these shortcuts come at a cost: they make the insurance industry look irrelevant and allow street-level corruption to thrive.

The Insurance Companies’ Responsibility

Insurance companies also carry part of the blame. Many have failed to properly educate their clients on what to do during accidents. After all, beyond selling policies, they should ensure drivers understand the process of claims. A few like Priority Insurance Co. Ltd, Hollard, Enterprise, and Allianz have started using radio, social media, their agents and accident hotlines to educate, but most drivers still rely on word-of-mouth or myths from other drivers.

The truth is: insurance is only as strong as the public’s trust in it. If drivers believe it’s easier to pay a mechanic than file a claim, the system collapses from the street up.

What Should Happen Instead

Here’s how the ideal process should work — and what every driver should remember:

1. Stay calm after an accident.
   Do not fight. Secure the scene and exchange insurance information.

2. Call the police — for a report, not for judgment.
   The police are there to record the incident, not decide who pays whom.

3. Take photos and videos.
   Evidence helps your insurer determine liability.

4. Report to your insurance company immediately.
   Delays can cause rejection of claims.

5. Avoid roadside settlements.
   Once you pay cash, you lose your claim rights.

The Bigger Question From Accra Street Journal

Why should a driver pay out of pocket when both parties have insurance? Why should the police — trained to enforce law, not interpret policies — decide who repairs whose car?

These are the questions Ghana must confront if we ever hope to build a reliable motor insurance system. Because every time a policeman decides a roadside settlement, it chips away at the credibility of the insurance industry. And every time a driver chooses to pay “something small” instead of filing a claim, it reinforces a broken culture that keeps repeating itself.

Final Thought from Samuel Kwame Boadu & ASJ

Accra’s roads will always have accidents — that’s a reality of modern traffic. But the real accident happens after the collision — when ignorance meets authority and both collide with the law.

The next time you see two drivers shouting in the middle of the road, remember: the loudest person isn’t always right. The law, the policy, and your premium already know what to do — if only we’d let them work.

So to the Ghana Police: you’re law enforcers, not insurance adjusters.

And to every driver: you paid for peace of mind — don’t let fear and confusion rob you of it on the streets of Accra.

Source: Accra Street Journal | Written by Samuel Kwame Boadu

Last Updated on December 7, 2025 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

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