Mrs Mercy Naa Korshie Buampong, Chief Executive Officer of Serene Insurance Company Limited, has urged businesses to regard marine cargo insurance as an investment in business continuity rather than an additional operational expense.
She said the cost of insuring imported cargo was relatively low compared with the potentially significant financial losses businesses could suffer if goods were damaged, lost or destroyed during transit.
Mrs Buampong made the call at a media forum organised by the Ghana Ports and Harbours Authority (GPHA) in Tema.
She said marine cargo insurance premiums represented only a small fraction of the value of imported goods while providing substantial financial protection against unforeseen risks.
She explained that marine cargo insurance covered not only the value of the goods but could also include freight charges and certain customs-related costs.
Mrs Buampong noted that importers whose consignments arrived damaged were still required to pay customs duties, making insurance an essential safeguard for recovering financial losses.
She observed that importers who did not purchase local cargo insurance still paid an insurance component during customs valuation but were unable to benefit from insurance protection.
The Chief Executive Officer said insurance companies in Ghana were regulated by the National Insurance Commission, providing policyholders with avenues for redress where disputes arose.
She identified ship collisions, fires, grounding, water damage and general average contributions as some of the risks businesses faced in international trade.
Mrs Buampong encouraged importers to invest in cargo insurance to protect consignments that often represented substantial business capital.
She said sustained public education was helping to address misconceptions about insurance and improve public confidence in the industry.
Mrs Buampong stressed the need for importers to provide accurate information on cargo values, destinations and transportation arrangements when purchasing marine cargo insurance to ensure adequate cover and avoid disputes during claims settlement.
She cautioned that undervaluing cargo to reduce insurance premiums could significantly lower compensation payable in the event of a loss, as insurers relied on accurate information to determine appropriate coverage.
She advised importers to disclose the nature of their cargo, the points where insurance should commence and terminate, whether goods would be trans-shipped and whether inland transportation would continue after discharge at the port.
According to her, such information enabled insurers to assess the full range of risks associated with the movement of goods throughout the logistics chain.
Mrs Buampong said importers could insure their goods from the supplier’s warehouse to their own warehouse in Ghana, depending on the applicable trade terms.
She explained that Clause A of marine cargo insurance provided the broadest protection by covering all risks except those specifically excluded, while Clauses B and C offered more limited coverage based on the nature of the cargo.
Mrs Buampong urged businesses to seek professional advice before selecting the most appropriate insurance policy for their consignments, stressing that full disclosure would ensure adequate protection and minimise disputes during claims processing.
