The new regime for Uganda's Marine Insurance starts in April 2020 and thereafter will become compulsory by July, according to the Insurance Regulatory Authority (IRA).
The IRA in collaboration with Uganda Revenue Authority and the Uganda Insurers Association, have instituted a technical working group to implement the local marine cargo goods strategy. An e-portal system for the local marine cargo /goods in transit insurance has been developed.
There has been delay in implementing the marine insurance scheme. Last year, the IRA set January 2020 as the start date for importers to compulsorily buy marine cargo insurance from local providers. The IRA sees shippers as insuring their imports at the country of origin, thereby denying the country’s insurance sector of revenue.
Under the compulsory marine insurance scheme, all imports must have a valid marine insurance cover underwritten by a Ugandan registered insurance company before clearance by Uganda Revenue Authority.
The new requirement makes it easier for importers to lodge claims with Ugandan insurers as opposed to the cumbersome procedure of lodging insurance claims with foreign insurers for lost or damaged goods,” Mr Steven Kaddumukasa, senior inspection officer at the IRA said last November at a presentation.
The IRA is expected to develop the Marine Cargo Insurance Guidelines; approve minimum premium rates for marine cargo insurance and design the compulsory marine cargo insurance certificate; and engage the insurers to ensure that they pay claims promptly.