The Ghana Shippers Authority (GSA) has schooled some exporters and importers in the business industry on the benefits of insurance and the processes involved.

The participants, drawn from various parts of the country were educated on topics such as; What Cargo Insurance is; importance and benefits of taking Marine Insurance locally; and measures in place to facilitate uptake of Marine Insurance Locally, among others.

Mr Charles Asiedu Sey, Tema branch Manager of the Ghana Shippers Authority explained that the training was to educate and sensitise members on the need for insurance for their businesses. The training, he noted, forms part of efforts to streamline activities of local exporters/importers.

Mr. Asiedu Sey disclosed that the Ghana Shippers Authority has formed Regional Shippers committees in all the regions made up of Trade Associations, Importers/Exporters and Municipal and District Assemblies (MDAs), as well as other state agencies.

Mr Charles Ansong Dankyi, Senior Manager at the National Insurance Commission (NIC) asserted that “A Local Marine Cargo Insurance is a full proof Disaster Recovery Plan for exporters and importers, and it includes adequacy of sum insured (cost, freight, and duty) and adequacy of cover.”

The Senior Manager at the National Insurance Commission explained that this kind of insurance covers both importers and exporters against loss of damage resulting from perils by sea, air or land, and including the in-land transit in accordance with section 222 of the Insurance Act 2021 (Act 1061). He indicated that the Act 2021 also requires that all imports into the country are insured locally except for personal effects.

Mr Charles Ansong Dankyi averred that apart from the local insurance being a requirement, “there is a peace of mind with guaranteed protection of investment and business continuity.”

BoG To Ensure that Every Credit Facility Has Local Cargo Insurance

Mr Dankyi posited that for all exporters and importers to be insured, the Bank of Ghana (BoG) is being encouraged to ensure that every credit facility given to an importer or exporter would have local cargo insurance cover with the banks’ interest noted on the certificate. This, according to him, will ensure that importers and exporters are covered.

“As part of the NIC’s commitment for continuous stakeholder engagement with the public and especially the shipping and importing community on taking local insurance, plans are far advanced for digitising issuance of certificates of marine cargo insurance for efficiency and confidence.”
Mr Charles Ansong Dankyi

Mr Dankyi also made known that a separate claim guideline is being worked on for marine cargo insurance to enhance the claims process. He moreover, said that “currently, Marine claims are governed by the General Insurance Claims guidelines.”

The Senior Manager at the NIC, therefore, urged the participants to make insurance an integral part of their business strategies and investments, especially marine cargo insurance for guaranteed investments adding that “the Marine perils destroys but insurance restores.”

Meanwhile, the new marine insurance Act allows a foreign insurer that is not licensed to operate in Ghana, to open a contact office in Ghana, subject to approval and any other conditions imposed by the National Insurance Commission (NIC).