Accra: 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 cost. She emphasized that the cost of insuring imported cargo was relatively low compared to the potentially devastating financial losses businesses could suffer when goods were damaged or destroyed.
According to Ghana News Agency, Mrs Buampong made these remarks during a media forum organized by the Ghana Ports and Harbours Authority (GPHA). She highlighted that marine cargo insurance premiums generally represent a small proportion of the value of imported goods while providing significant financial protection. Mrs Buampong explained that cargo insurance covers not only the value of the goods but can also include freight charges and certain customs-related costs.
Mrs Buampong pointed out that importers whose goods arrived damaged were still required to pay customs duties, making insurance essential for recovering losses. She mentioned that importers who failed to purchase local insurance still paid an insurance element during customs valuation but did not enjoy the corresponding insurance benefits. She also noted that insurers are regulated by the National Insurance Commission, providing policyholders with an avenue to seek redress where disputes arise.
Citing ship collisions, fires, grounding, water damage, and general average contributions as examples of risks businesses could face during international trade, Mrs Buampong encouraged businesses to invest a relatively small amount in protecting consignments that often represented substantial capital. She emphasized the importance of public education in addressing misconceptions about insurance and improving public confidence in the industry.
Mrs Buampong stressed the importance of importers providing accurate information on cargo values, destinations, and transport arrangements when purchasing marine cargo insurance to avoid disputes and inadequate compensation in the event of loss. She warned that undervaluing cargo to reduce insurance premiums could significantly reduce compensation payable after a loss, explaining that insurers rely on accurate information to provide appropriate cover.
She advised importers to disclose the nature of their cargo, where insurance should commence and end, whether goods would be trans-shipped, and whether inland transportation would continue after discharge at the port. This information, she explained, enables insurers to assess the full range of risks involved throughout the logistics chain. Mrs Buampong noted that importers could insure goods from the supplier's warehouse through to their own warehouse in Ghana, depending on the applicable trade terms.
Explaining the different levels of marine cargo insurance, Mrs Buampong noted that Clause A provides the widest protection by covering all risks except those specifically excluded, while Clauses B and C offer more limited cover depending on the nature of the cargo. She urged businesses to seek professional advice before selecting the most appropriate policy for their consignments. Proper disclosure, she said, ensures importers receive adequate protection and reduces the likelihood of disputes during claims processing.