The Ministry of Works and Transport has called on government departments to set an example by insuring their assets, emphasizing that doing so not only mitigates risk but also boosts insurance uptake in Uganda.
Minister Gen Edward Katumba Wamala highlighted that his ministry has insured most of its assets, including Uganda Airlines aircraft, trains, water vessels, and road vehicles.
Speaking at the 14th Insurance Agents Awards 2024, hosted by the Uganda Insurers Association under the theme "Driving a Resilient Agency Distribution Channel for Sustained Insurance Growth," Gen Wamala underscored the importance of insurance as a national social safety net.
Despite being the largest owner of both movable and immovable assets, the government has faced criticism from the Insurance Regulatory Authority for its reluctance to insure its properties. Gen Wamala lamented the low insurance penetration in Uganda, which stands at approximately 0.8 percent in gross written premiums as a ratio of GDP.
He expressed particular concern about the transport sector, where even the mandatory Motor Third Party insurance has seen limited adoption.
According to the insurance association, only about one-third of motor vehicles in Uganda are insured, largely due to public skepticism that “insurance does not pay.”
The minister made a strong appeal to insurers and stakeholders to promote insurance awareness among boda boda riders, who are involved in the highest number of road accidents. He stressed the need for intensified education on Third Party Insurance, noting its significance not just for riders but also for passengers, given that boda bodas represent the largest segment of the passenger transport industry.
"They play a vital role in passenger transportation, yet they remain the least insured. We cannot overlook their contributions, as they are doing important work," he stated.
Regarding the ministry's initiatives, he highlighted the simplified process for cyclists to acquire driving licenses, including reduced costs to remove financial barriers.
The minister also emphasized the significance of the ongoing review of the Motor Vehicle Insurance (Third Party Risks) Act 1989, which seeks to mandate medical facilities to prioritize treating accident victims before assessing their ability to pay.
"Do not demand proof of payment first—save lives before discussing financial arrangements," he urged.
He also advocated for revising the "No-fault approach," which currently allows drivers involved in accidents to claim compensation from insurers, proposing that those without a valid driving license at the time of the incident should be excluded from eligibility.
However, he emphasized that the most transformative development in the insurance sector would be the implementation of the National Health Insurance Scheme, an initiative that has remained unrealized for over a decade since it was first introduced.
"National Health Insurance is the ultimate form of social protection and the most effective health financing strategy," he stated, urging further education for Members of Parliament on the matter.
Dan Musiime, Chairperson of the UIA Medical Committee and CEO of Jubilee Health Insurance, pointed out the relatively low participation of individuals in health insurance, despite the sector showing overall growth.
Health insurance currently contributes over 20 percent to total insurance premiums, but most of this uptake is driven by corporate entities rather than individuals.
Musiime revealed that 90 percent of health insurance policies are held by companies and employers, leaving individual consumers responsible for just 10 percent.
Meanwhile, Jonan Kisakye, Chief Executive Officer of the Uganda Insurers Association (UIA), reiterated the need for stronger collaboration with the Ministry of Finance, Planning and Economic Development and the Uganda Revenue Authority to address tax concerns affecting insurance agents.
Among the key issues raised was the proposed amendment to the Income Tax Act, seeking to classify insurance agents' withholding tax as a final tax.
At the event, UAP Old Mutual’s Justine Namugosa was recognized as the Overall Agent of the Year, while Ssempasa Diana (UAP OM) and Prossy Naluyinda of CIC Insurance Uganda secured the 1st and 2nd Runner-up positions, respectively.
Other awards were distributed across different insurance segments and agent-operated businesses.
