Ghana Airways is in discussion with government to secure funding to increase its insurance cover. Aviation insurance cover has surged in the wake of the September 11 attacks on the United States. Since then, aviation liability insurers all over the world have reduced insurance cover for war risk coverage of contacted parties.
This type of insurane covers ground handling, catering and other airline related businesses. Board Chairman of Ghana Airways, Sam Jonah told JOYFM that he is confident of a favourable government response because without it, the airline cannot fly to certain destinations in Europe.
Private airlines across the world have received state funding to cover the increased indemnity. As a sole owner of Ghana Airways, government is obligated to bear the risk because aviation liability insurance has cancelled the other insurances that the company was using.
He said insurers are now prepared to insure Ghana Airways to the tune of $50 million instead of the $750 million insurance cover it enjoyed in the past. There is therefore insurance liability risk of $700 million Cedis which government will have to bear.
Passengers of the airline will soon be required to pay some extra money for their tickets to cover less expensive aspects like passenger insurance. Finance Minister, Yaw Osafo Marfo recently indicated his ministry’s preparedness to help boost Ghana Airway’s insurance cover if the airline puts in a request.
