GUTA demands halt to cargo insurance directive, cites lack of consultation
The Ghana Union of Traders Association (GUTA) has expressed strong opposition to the recent implementation of a directive mandating local cargo insurance, labelling the move as a unilateral and coercive action that threatens free market principles.
In a strongly-worded statement, the Association voiced its frustration over the government’s failure to respond to its request for an emergency meeting to discuss the policy’s implications.
GUTA has called on the National Insurance Commission (NIC) and relevant authorities to immediately suspend the directive and engage in meaningful stakeholder dialogue.
The traders’ umbrella body outlined a seven-point argument against the directive’s current form. Central to its concerns is the belief that insurance is a service that cannot be imposed by regulatory fiat.
“The business community cannot be coerced into purchasing insurance services. This undermines the principles of free market economics,” GUTA stated.
The Association argued that local insurance companies should focus on enhancing their competitiveness and attractiveness to win business, rather than relying on a mandatory policy.
It also insisted that stakeholder consultations on the matter had been neither exhaustive nor conclusive.
Further concerns highlight practical business arrangements. GUTA pointed out that foreign suppliers often retain an insurable interest in imported goods due to existing credit arrangements and should be allowed to maintain their chosen insurance coverage.
The Association emphasised that suppliers typically have preferred insurers and terms, which should be respected.
GUTA described the potential penalties for non-compliance as a form of “custodian punishment” that is morally wrong, especially when local insurers’ capacity and affordability remain unproven.
The statement questioned the local insurance industry’s track record, noting its current lack of patronage from Ghanaian businesses as evidence of unresolved issues regarding experience, capacity and cost.
The implementation of the local cargo insurance directive is intended to bolster the domestic insurance sector.
However, GUTA’s public discontent signals a significant rift between the policy’s objectives and the practical concerns of a major segment of Ghana’s import and trade community, potentially setting the stage for a contentious policy review.