The Ghana Union of Traders Association (GUTA), is calling for the suspension of the implementation of the Insurance Act 2021 due to some clauses the association finds problematic.
Per the law, importers are to insure their goods only with local insurance companies.
The law also prescribes a jail sentence for importers who do not comply with the mandatory Marine Insurance Policy.
GUTA believes the sanctions are extremely harsh and impractical especially under their current mode of operations where their suppliers pay for the insurance of goods overseas due to their agreed credit arrangements.
President of GUTA, Dr Joseph Obeng stated that “It is a law that mandates me to compulsorily take an insurance company where the service is not being bettered, where I can have better service out there where I have my suppliers who owe my goods also opting for their preferred insurance companies and all that.”
“I don’t think they’ve taken their time to dissect the issues.”
He further stressed that the law must be given a second look to protect the interest of importers.
“They have to look at it again, withdraw it, consult the stakeholders, convince us why probably we can even give some power to such law or act otherwise they cannot impose this. I see this as an imposition.”
The Importers and Exporters Association had also earlier raised concerns about the custodial sentencing clause in the Ghana Insurance Act 2021. They called for a review of that portion of the law adding that it was imperative to preserve the sector.
The Insurance Act 2021 received presidential assent in February 2021.
It seeks to drive the growth of the domestic insurance industry by mandating the purchase of certain types of insurance as well as by strengthening internal governance requirements and the supervisory framework for insurers.
Below is a copy of a press statement from the GUTA on its concerns with the law.