Dr. Justice Ofori, the commissioner of the National Insurance Commission (NIC), has revealed that the Insurance Act of 2006 does not cover 22.3 billion Ghana cedis ($23.7 billion) of all cargoes imported into Ghana (Act 724)
This indicates that only 6% of the total value of imported products in 2021 was covered by insurance.
He asserts that importers often break the law despite though Ghana’s rules require all commodities entering the nation, with the exception of items for personal effects, to be insured with a local 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 as prescribed by section 222 of the Insurance Act, 2021 to the detriment of the local market,” he is quoted by graphiconline.com reports on October 18, 2022.
Dr. Ofori added that the practice affects the insurance companies’ ability to generate the needed premium income necessary for financing long-term investments.
He further stated that “But all that is about to change and this training could therefore not have come at a better time.”
“With the support of the Marine Protocol, Marine and Aviation Insurance Database (MAID), and more importantly your expertise, the future looks promising,” he said during a training for Insurance brokers.