NIC, BoG and GRA Begin Strict Enforcement of Compulsory Local Marine Cargo Insurance
The National Insurance Commission (NIC), in collaboration with the Bank of Ghana (BoG), the Ghana Financial Stability Council and the Ghana Revenue Authority (GRA), has commenced strict enforcement of the compulsory local marine cargo insurance requirement for all imports, in line with Section 222(1) of the Insurance Act, 2021 (Act 1061).
The directive, which follows guidance from the Ministry of Finance, forms part of a coordinated effort to retain marine cargo insurance premiums within the domestic economy and deepen the local insurance market.
Under the new enforcement framework, commercial banks have been directed by the Bank of Ghana to confirm the existence of valid local marine cargo insurance before issuing Letters of Credit for imports. This effectively makes proof of insurance a prerequisite for trade finance transactions involving imported goods.
In addition, the GRA will work closely with the NIC to verify insurance coverage through the Integrated Customs Management System (ICUMS), which will be cross-checked against the NIC’s Marine and Aviation Database (MAD).
As a result, no commercial import will be cleared at any port of entry without verifiable evidence of insurance cover issued by an NIC-licensed insurer.
The Commission said the measures are expected to significantly boost marine insurance uptake and ensure that commercial cargo risks are retained within Ghana’s insurance market.
To position themselves to benefit from the anticipated growth, the NIC has encouraged insurance companies to strengthen partnerships with commercial banks and freight forwarders, educate importers on the mandatory nature of local cover, and ensure that all marine policies are promptly uploaded onto the MAD to avoid clearance delays for clients.
According to the NIC, strict adherence to high underwriting and policy servicing standards will be critical in demonstrating the local market’s capacity to manage marine cargo risks effectively.
