An Executive Director of the Africa Sureties and Insurance Advisory Company (ASIAC), has said that insurers may not honour claims of vehicles other than bullion vans or armoured vehicles used to transport monies from one location to another.
According to Mr Seth Kwasi Aning, using any vehicle to carry out that duty except bullion vans amounted to a violation of the terms and conditions of the insurance policy.
Mr Aning made the remark at a meeting to discuss the organisation’s Corporate Social Responsibility (CSR), plan for the next five years, which is designed to help increase insurance penetration in Ghana in particular, and Africa.
He explained that the use of armoured vehicles or bullion vans by banks and financial institutions for the transportation of cash or any of its equivalent was a requirement under the Bankers Indemnity policy, which was more appropriate insurance policy designed to protect banks and financial institutions under such conditions.
He, however, added that if the financial institution or bank had outsourced the transportation of its cash to a third party or security firm, the onus lied on that firm to refund the lost cash as the terms of their contract to safely transport a given amount of money from one location to another.
Commenting on the spate of attacks on cash transit vehicles or bullion vans, Mr Aning said it was not good for business as it could lead to an increase in premium rates for Cash-In-Transit Insurance, and possibly delay the introduction of certain classes of insurances like parametric insurance into the country.
“This means that transporting money in a more secure environment could attract premium discounts. The reverse, where money is transported without security or properly secured cases, safes or armored vehicles should attract higher rates. Current trends may cause some companies to completely shy away from cash-in-transit policies temporarily,” he added.
On his part, the CEO of ASIAC, Mr Solomon Lartey, said the spate of attacks on cash transit vehicles in Ghana could slow down a number of innovative insurance solutions intended for the Ghanaian market.
He said the introduction of parametric insurance for agriculture and disaster management for a country with earthquake and hurricane exposures would aide economic development and sustainability.