No law forbids market centers from being insured but …

The perennial market fires in Kumasi and Accra and other parts of the country has always ignited the debate on the reluctance of insurance firms to insure marketers, but the Kumasi Area Manager of the National Insurance Commission, Mr. Evans Osei Bediako, maintains that the poor state of most market centers is to blame for the situation.

He said there is no insurance regulation that prevents insurance companies from insuring traders and their wares. However, he explained that insurance is a risk management activity, requiring insurers to access the risk anyone brings to the ‘pool for insurance purposes.’

He mentioned that there are two forms of risk; standard and substandard risk, associated with issuing insurance, and said this informs the operations of insurance firms.

He observed that although no law bars markets from being insured, the risk associated with most public trading centers is very huge – substandard, and is what discourages insurance companies from moving into that area.  

“The risk that our markets have is quiet substandard; they lack access routes for emergency situation, absence of fire fighting gadgets, dilapidated structures, and faulty wiring system and others, making them highly risky,” he stated.

He feared that if insurance companies go into this area they might record huge loses yearly given the prevailing conditions at most market centers.

He reckoned that the situation is not encouraging that notwithstanding the regulator cannot force any insurance company to do what they do not want to do so long as it does not contravene any insurance laws of the country.

He was however optimistic that insurance firms would find doing business with traders more convenient when market centers are modernized to have access roads and installed fire fighting measures.

Mr. Osei Bediako made these remarks in an exclusive interview in the wake of the recent fire outbreak at the Kumasi Central Market, which is estimated to have destroyed over 400 shops and caused massive damages to thousands of foodstuff and wares worth several millions of Ghana cedis.

Some of the items and foodstuff destroyed in this latest inferno, which is believed to be the biggest fire outbreak so far, given the extent of damage includes yam, smoked fish, jewelleries and other food ingredients.

So far it is unclear what might have caused the fire at the section of the Central Market known as Bode a popular spot for yam sellers.