The National Insurance Commission (NIC) has revealed that full implementation of the Marine Cargo Insurance Protocol at the Ports of Ghana will take place before the end of the year 2021.

Interacting live with the public on the Eye on Port program, the Senior Manager at the Supervision Department of the National Insurance Commission, Mr. Charles Ansong Dankyi noted that the Cargo Insurance Protocol will make it mandatory for traders to purchase local insurance for their import and export cargo.

He encouraged traders in Ghana to purchase local insurance or risk delays during the enforcement of the marine cargo insurance protocol.

Mr. Dankyi said, “If you do not have local marine insurance you would be forced to take it. And you can imagine the time and the amount of money and inconvenience that you would have to go through if you have not taken the local marine insurance.”

The newly developed Marine Cargo Insurance Protocol is an MoU signed by the NIC, Ghana Revenue Authority (GRA) and the Ghana Shippers’ Authority (GSA) to ensure that goods imported into the Country are insured locally in line with Section 37(1c) of the Insurance Act 2006, (Act 724).

Statistics say currently, only 6% of the importing public in Ghana purchase marine insurance policies from local insurers.

He revealed that before goods are cleared at the ports, importers will have to show evidence of the purchase of local marine insurance.

“There is a portal where we share a database with the Ghana Revenue Authority.

Before you clear your goods, there should be evidence of local marine insurance certificate to confirm that you have taken the local insurance,” Mr. Dankyi disclosed.

The Senior Manager at the Supervision Department said, however, that the NIC and its partners have been focused on sensitizing the trading public on the benefits of purchasing marine insurance covers locally.

He outlined some losses suffered by the shipping community in Ghana due to their failure to take insurance from Ghanaian insurance companies, adding that, this protocol offers the perfect remedy to the situation.

Mr. Charles Dankyi said in addition to the local insurance companies having the financial and technical capacity, traders would enjoy easier accessibility to claims, better ratings and no language barrier.

“We are rating even better than what pertains outside. The essence of taking marine insurance is that one day when there is a claim, insurers could respond to this quickly. Insurers in Ghana have the capacity to. Even with the reinsurance arrangement that they have in place, they can respond to claims as they arise,” he elaborated.

Mr. Dankyi stated that the NIC will ensure that insurance companies abide by their contracts to pay claims without any delays.