By Iddi Yire
Accra, Oct 14, GNA – Dr Justice Ofori, the Commissioner of Insurance, has revealed that solely about six per cent of all cargo imported into the nation in 2021 was insured locally.
He mentioned some importers consider the scale and nature of insurance market in Ghana renders it uncompetitive and ineffective in underwriting cargo insurance; declaring that each one that was about to vary.
Dr Ofori made the revelation in a speech learn on his behalf on the opening of a two-day marine insurance coaching, in Accra.
The programme is being organised by the Insurance Brokers Association of Ghana (IBAG), the commerce physique of insurance brokers in Ghana, for insurance brokers and insurers throughout the Ghanaian insurance trade dubbed, “Essentials of Marine Cargo Insurance”.
The coaching programme is geared toward constructing the capability of the professionals to allow them actively to take part within the full implementation of the obligatory marine cargo business.
Dr Ofori mentioned the National Insurance Commission (NIC) was grateful to the executives of the IBAG and Munich Reinsurance, South Africa for placing the two-day coaching collectively, particularly at a time the insurance trade in Ghana was doing all it may to develop marine insurance.
He mentioned there had at all times been a provision within the insurance Acts that requires all imports into the nation, besides for private results, to be insured with a neighborhood insurer.
“But this is yet to substantially impact our industry, simply because goods are usually imported on Cost, Insurance and Freight (CIF) instead of Cost and Freight (CFR) as prescribed by section 222 of the Insurance Act, 2021 (Act 1061), to the detriment of the local market,” he mentioned.
He famous that accessible information point out that together with a excessive worth of imports/exports, vital investments have additionally been made in infrastructure improvement for the delivery trade.
He mentioned with the assist of the Maritime Protocol, Maritime and Aviation Insurance Data (MAID), and extra importantly insurance experience, the long run seems to be promising.
Mr Shaibu Ali, President, IBAG mentioned the essence of the workshop was to reposition their members to take benefit of the brand new insurance legislation.
He famous that beneath the outdated insurance legislation the punishment that was given if one imports his items with out insuring them other than private belongings resembling garments, tv set, each different factor was a positive.
“But the fines were not working because the importers were happy to pay the fines and walk away. So, this new law now says that if you import without insuring with the local insurer, you can go to prison for up to three years.”
He mentioned the brand new legal guidelines had been going to place some quantity of urgency within the importers to take a look at insuring particulars.
Mr Seth Kobla Aklasi, President, Ghana Insurers Association (GIA), mentioned Ghana imported items value $23.7 billion as at 2021, whereas the full export determine was solely $22 million; saying “clearly, we are importing more than we are exporting. Whatever the case is, there is the need to protect our economy”.
He urged stakeholders within the insurance trade, particularly insurance firms, to coach the general public on the necessity for insurance, in order that there can be a win-win state of affairs for all of them.
He mentioned within the interval that Ghanaians had been in now, a very powerful factor anyone may do now was to insure as a result of of uncertainties; saying “we do not need to leave anything to chance.”
Mr Tawiah Ben-Ahmed, President, Chartered Insurance Institute of Ghana (CIIG), who counseled IBAG for organizing the workshop, mentioned for CIIG to attain its goal of guaranteeing that insurance practices had been of the very best doable requirements and in conformity to internationally accepted finest practices, steady skilled improvement and coaching have to be embedded of their method of work throughout all of the our bodies within the insurance trade.
GNA
