An Assessment of the Awareness of Fire Insurance in the Informal Sector: A Case Study of Kumasi Central Market in Ghana

Markets in developing economies do not have well planned and proper layouts so they are always congested. Anytime fire breaks out in the market it becomes very difficult for fire tenders to get access to quench the outbreak so many goods are destroyed in the markets. This study assesses whether the traders are aware of fire insurance and have taken such policies to cover their goods and stalls. A sample of 95 traders was used. It was found out that majority (50.52%) of the traders did not understand the concept of insurance so they had wrong perception about it; the traders were aware of the causes of fire outbreak and ranked electricity power fluctuations as the major cause; the traders could use water and sand to quench fire but only a few of them could use foam, carbon dioxide and dry powder to control fire outbreak. Relevant recommendations have been made for these traders and policy makers to strategize in order to have better protection on the markets.