By Laudia Anyorkor Nunoo, GNA
Tema, Feb. 11, GNA – The Importers and Exporters Association of Ghana (IEAG) has engaged the leadership of the Ghana Insurers Association (GIA), the National Insurance Commission (NIC), and the Insurance Brokers Association of Ghana (IBAG), over the proposed mandatory local cargo insurance policy.
The engagement, initiated by the insurance industry, followed an earlier press statement issued by IEAG on the directive by the Minister of Finance to enforce mandatory local insurance for all imported goods.
Mr Samson Asaki Awingobit, the Executive Secretary of IEAG, who welcomed the delegation, stated that the association was not opposed to the policy in principle but had reservations about certain provisions that could negatively affect the import sector.
He questioned proposals suggesting custodial sanctions for importers who fail to insure cargo locally, noting that a significant proportion of imports into Ghana were undertaken on Cost, Insurance and Freight (CIF) terms.
Under CIF arrangements, he explained, cargo is already insured by overseas suppliers before shipment, and compelling local insurance could result in double insurance.
“While premiums may be duplicated under such circumstances, claims cannot be recovered twice in the event of loss,” Mr Awingobit stated, describing the situation as financially burdensome and legally complex for importers.
He also drew attention to the absence of clarity in the draft Legislative Instrument (LI) regarding transit cargo, seeking explanation on whether goods merely passing through Ghana to neighbouring countries would be required to obtain local insurance.
He said any rigid implementation of such provisions without clear exemptions could disrupt regional trade flows and undermine Ghana’s competitiveness as a transit hub within the sub-region.
Mr Awingobit further raised concerns about the claims-paying capacity, financial strength and responsiveness of some local insurers, especially in handling high-risk and high-value consignments.
He emphasised the need for strong capitalisation, robust reinsurance backing, and prompt claims settlement mechanisms to build confidence among importers and exporters.
Dr Kingsley Kwesi Kwabahson, the Chief Executive Officer of the Ghana Insurers Association, responding to the concerns, assured IEAG that the mandatory local cargo insurance LI was currently under review.
Dr Kwabahson indicated that the insurance industry recognised the importance of stakeholder consultation and would carefully consider all concerns raised, including issues relating to transit cargo and CIF arrangements.
Meanwhile, in a related engagement, IEAG received the management of Star Assurance Company Limited, led by Mrs Nana Serena Abrahams, the Head of Underwriting and Global Business.
Mrs Abrahams reaffirmed Star Assurance’s commitment to collaborating with IEAG to develop competitive cargo insurance solutions tailored to the needs of importers and exporters.
She stated that the company possessed the financial capacity, technical expertise, and risk appetite to handle high-value cargo and settle claims promptly, regardless of the level of risk involved.
GNA
Edited by Christabel Addo
