Marine cargo pre­mi­ums up 11 per cent to Sh651 mil­lion

Business Daily (Kenya) - - MONEY & MARKETS - Goods be­ing o loaded from a ship. -James Ngun­jiri Ngun­jirij@ke.na­tion­media.com Im­porters now make on­line ap­pli­ca­tion for marine cargo in­sur­ance via a por­tal

Lo­cal marine cargo in­sur­ance (MCI) pre­mi­ums have recorded a 10.6 per cent growth to reach Sh661 mil­lion as at the end of Septem­ber, up from Sh591 mil­lion in June.

“Com­pared to the same pe­riod last year (Septem­ber 2016), the pre­mi­ums have grown by 69.4 per cent from Sh390.2 mil­lion,” said in­dus­try lobby As­so­ci­a­tion of Kenya In­sur­ers (AKI). Gross writ­ten pre­mi­ums (GWP) or cov­er­age since Jan­uary now stands at Sh1.8 bil­lion, the AKI added.

On Jan­uary 1, the gov­ern­ment started to im­ple­ment a reg­u­la­tion—sec­tion 20 of the In­sur­ance Act—that com­pelled im­porters to buy marine cargo in­sur­ance pol­icy from lo­cal un­der­writ­ers.

To fully im­ple­ment Sec­tion 20 of the In­sur­ance Act, the statute law (Mis­cel­la­neous Amend­ments) Act, 2017 changed sec­tion 20 (4) of the In­sur­ance Act to in­crease penal­ties from Sh10,000—and/or im­pris­on­ment of up to one year—to Sh5 mil­lion and/or im­pris­on­ment of up to five years for non-com­pli­ance.

Fur­ther, the Marine In­sur­ance Act Cap.390 was amended to make it com­pul­sory to in­sure marine cargo im­ports. The lat­ter will be op­er­a­tional from Jan­uary 1, 2018. AKI, state de­part­ment for mar­itime and ship­ping af­fairs, Kenya Trade Net­work Agency and KRA have been key agen­cies in im­ple­men­ta­tion.

Im­porters now make on­line ap­pli­ca­tion for marine cargo in­sur­ance via a por­tal on the Kenya Tradenet Sys­tem op­er­ated by Ken­trade.

DOCKED

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