The National Insurance Commission (NIC) has assured that it will continue engaging stakeholders on the implementation of the Insurance Act 2021.
After concerns raised by importers, the NIC, in a statement, said it was only “enforcing an existing law that dates back to the Insurance Law of 1989, PNDC Law 227.”
“For effective administration, the new law requires that the NIC designs regulations as a guide for implementation. This process has since commenced and will involve various stakeholder engagements,” the NIC added.
The new insurance law, which replaced the Insurance Act of 2006, made it mandatory for all goods being imported into Ghana, to be insured in the country by insurance companies licensed to operate in Ghana.
Though there have been calls for the suspension of the implementation of the new Insurance Act 2021, which received presidential assent in February 2021, the NIC noted that the new law was in line with the already existing Insurance Law 1989 (PNDC Law 227) Section 63 and the Insurance Act 2006 (Act 724).
The statement, however, does not address concerns with the aspect of the Insurance Act 2021 which prescribes a jail sentence for importers who do not comply with the mandatory Marine Insurance Policy.
The Ghana Union of Traders Association (GUTA), for example, had said the sanctions were harsh and impractical.
President of GUTA, Dr Joseph Obeng protested, saying the law needed another look.
“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,” Dr. Obeng said earlier in June.
The Importers and Exporters Association had also raised concerns about the custodial sentencing clause in the Insurance Act 2021.
The Executive Secretary of the Importers and Exporters Association of Ghana, Samson Asaki Awingobit, also called for a review of the law which “we believe does not represent the vision of the current government to create an enabling environment for the trading sector.”