By Ronald Owili
The cost of imported goods is expected to reduce as local insurers begin absorbing risk involved in marine cargo from the point of purchase.
Importers are urging insurance firms to charge low premiums given the low risk associated with marine cargo transport in order to maximize on the impact of the new requirement on marine insurance.
Shipping and Maritime Principal Secretary Nancy Karigitu says the new requirement will help boost custom revenue by eradicating cases of tax evasion.
January 1st 2017 marked the beginning of Kenya bringing back lost business from the marine cargo insurance as section 20 of the Insurance Act come into force.
Previously, importers bought their policy from insurers of their choice either local or foreign.
With the risk factor for marine transport pegged at a meager 2 percent, importers are calling on insurance companies to reduce premiums to help further reduce the overall cost of imported goods.
Among the dividends from marine insurance business that is estimated at 30 billion shillings annually is an increase in custom collection with reduced cases of tax evasion through mis-declared goods.
This comes as Jubilee Insurance launched the marine cargo online portal where importers will manage their marine insurance policy online.
The portal is also expected to help authorities validate and verify certificates issued online, hence reduce the risk of fraud.