NATIONAL Insurance Commission (NIC) has appealed to the Ministry of Finance to help remove challenges that hinder insurance companies from insuring imported goods.
According to the commission, the challenges are caused by difficulties posed by the Ghana Revenue Authority (GRA) in executing its duties at the ports.
Speaking at a Dinner and Awards Night programme organized by the Insurance Institute of Ghana, the Commissioner of the National Insurance Commission, Madam Lariba Bawa stated that “the country is losing millions of cedis due to the situation”.
“Even though the insurance Act requires all goods being imported into the country to be insured by Ghanaian insurance companies, some practices of the Ghana Revenue Authority make it almost impossible to enforce this provision,” she said adding that the practice is different in African countries that have seen high insurance penetration in the financial sector.
“Unlike countries like Nigeria and Kenya where all imported goods are insured locally, the situation in Ghana is such that a very small proportion of imported goods are actually insured in Ghana,” she lamented.
She pointed out that the challenges do not only affect the insurance industry but also make the country lose revenue.
“Apart from being a gross violation of the Insurance Act it also robs the insurance industry of a significant source of income thereby hindering growth and profitability. I will therefore like to solicit the help of the minister who is hereby ably represented to help us find amicable solution to this challenge,” she said.
By Kofi Owusu Tawiah