Food and Beverage Association protests compulsory local insurance policy

The Food and Beverage Association of Ghana (FABAG) is up in arms against government over the Ghana Insurance Act’s requirement for all
imported goods to be insured by local insurance agents. According to FABAG, the act seeks to help local insurance companies generate revenue
expense of importers.

Section 222 of the Ghana Insurance Act 2021 (Act 1061) states that “a person who imports goods other than personal effects into the country sha
insure the goods with an insurer licensed under the Act.”
Subsection 2 also prohibits offshore marine cargo and hulk insurance, with the exception of reinsurance contracts approved by the regulator.
But speaking to Business24 after a meeting with the Ghana Shippers Authority, Sam Aggrey, Executive Secretary of FABAG, said insuring impo
goods with local companies should be optional rather than mandatory.

“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,
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, eve
you are importing from, say, United Kingdom, the local insurance company must insure the goods from its foreign origin to the local port.”
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