‘Don’t underestimate importance of good insurance cover’

Adequate insurance cover should
top the agenda when contracts
are being negotiated for the
movement of cargo anywhere in Africa,
according to South African-based shortterm
insurance intermediary, Prestmarine
International.
Insurance and its cost should be one
of the first considerations when drawing
up a contract, says Susan Bester, marine
marketing manager for Prestmarine
International, and the importance
of good cover for operations on the
African continent should never be
underestimated.
“Often the subject of insurance only
comes up when a contract has already
been signed – it should in fact have
been a consideration from the very
beginning,” says Bester. “Africa poses
very specific risk and that is reflected in
the rates that are more expensive than
Europe – an accident for example on a
remote African road will be costly as the
salvaging of cargo is near impossible,
communications are limited and repair
facilities are minimal.”
While Africa poses much opportunity
for transporters and insurers alike, it is
important to consider the continent’s
limitations, says Bester. “Administration
does not always run as smoothly and
due to communication problems one
cannot always get hold of the right
people, making it more difficult to sort
out problems. All these are aspects that
affect the rates.”
But, says Bester, Africa remains
a market that continues to grow.
“While the recession did see a drop in
volume, we remain optimistic about
the opportunities the continent presents.
Business is always growing whether it
is power installations, communication
development, hotels or the movement of
pharmaceutical goods. While the mining
industry has been very quiet following
the global economic meltdown, it
will pick up again providing much
opportunity of its own.”
Bester says border posts continue to
pose a risk due to the delays and the
administration problems as well as the
lack of facilities to repack cargo properly
after inspecting it, but it is a continent
where improvements are taking place all
the time.
“Africa is definitely not business
we are shying away from, but rather
growing because despite carrying a
possibly higher risk, it is a continent
offering never-ending opportunities.”