5.7 C
London
Thursday, December 9, 2021

Food and Beverage Association kicks against compulsory local insurance policy

The policy requires imported goods to be insured by local agentsThe policy requires imported goods to be insured by local agents

•The Food and Beverage Association are against a compulsory insurance policy

• The policy requires imported goods to be insured by local agents

• But the association believes it will only help local insurance companies to rake in revenue at the expense of importers

The Food and Beverage Association of Ghana have kicked against a compulsory local insurance requirement within the Ghana Insurance Act 2021, a Business 24 report has said.

- Advertisement -

According to Section 222 of the Ghana Insurance Act 2021 (Act 1061): “a person who imports goods other than personal effects into the country shall insure the goods with an insurer licensed under the Act.”

But the Association insists the requirement is one that is not business-friendly and is counterproductive adding that they believe it will only help local insurance companies to rake in revenue at the expense of importers.

In an interaction with Business24.com.gh monitored by GhanaWeb, Executive Secretary of the Association, Sam Aggrey, explained that insuring imported goods with local companies should be optional rather than mandatory as required by Act.

“When the goods reach, for instance, Tema, because you have insured the goods from the foreign origin, it is only appropriate that it ends there, unless you want to insure the goods through a local insurance agent to its final destination or warehouse.

“But what the government is saying is that, even if you are importing from, say, United Kingdom, the local insurance company must insure the goods from its foreign origin to the local port,” he added.

He continued, “Even if the local insurance company has a foreign agent from the importing country and I want to insure my goods to Ghana, it should still be optional, not compulsory. Again, if the goods come to Tema without being insured from its foreign origin but reach Ghana successfully, the law says I should still insure with a local agent, is it fair?”

The Association further called for a review of the custodial sentencing clause in the Ghana Insurance Act 2021 which prescribes a jail sentence for persons or entities who fail to comply with the policy.

Latest news
Related news