A model regulator of a secure and developed insurance industry

IRA CAMPS IN MID-WESTERN REGION, EDUCATES MASSES ON INSURANCE

The Insurance Regulatory Authority of Uganda (IRA) successfully concluded a regional awareness program in the mid-Western Uganda, covering the districts of Hoima, Kagadi, Masindi Kiryandongo, Kikuube and Buliisa.

During the two-day workshop program, a lot of information was shared with different groups of people among whom were farmer group leaders, Traffic Police Officers, boda boda riders and taxi and bus drivers. Focus was mainly on #AgricultureInsurance and #MotorInsurance.

Farmer leaders from the selected districts had an opportunity to learn about different farming areas covered under #AgricultureInsurance, the nature of risk covered, when, how and where to acquire agriculture insurance. During the workshop, Alhaj Kaddunabbi Ibrahim Lubega, the IRA Chief Executive Officer encouraged farmers to take up this insurance product, given that it is subsidized by the government.

The government subsidy, a country-wide scheme, provides insurance premium subsidies to farmers of 30%, 50% and 80% depending on whether they are large scale, small-scale farmers, or in disaster-prone areas, respectively.

This means that where the subsidy is 80%, the farmer will only pay 20% of the total premium required to have their agriculture venture insured against the effects of agriculture risks.

Alhaj Kaddunabbi further explained that the subsidy was introduced to make agriculture insurance affordable to farmers through standardising premium rates for crop and livestock covered under the national scheme and to increase farmers’ access to credit by protecting agriculture loans disbursed by banks from the effects of specified agriculture risks.

Boda boda riders and taxi and bus drivers on the other hand also had an opportunity to learn about how Motor Third Party (MTP) and Motor comprehensive insurance work. They were encouraged to always acquire genuine MTP stickers to help them access the benefits associated with this kind of insurance. While it is not compulsory, the IRA CEO encouraged motorists to consider buying Motor Comprehensive insurance because offers wider benefits such as covering both the first and third party on top of property damage involved, unlike MTP.

The advice was further amplified by Mr. Steven Kaddumukasa, the IRA Ag. Manager Inspection who emphasised that taxi and bus drivers should share this information with the owners of the vehicles so they can appreciate the benefits and respond accordingly.

Being critical stakeholders in implementing motor insurance, the Traffic Officers from selected district were also taken through the process of identifying genuine insurance stickers and how to deal with defaulters on the road. The officers appreciated the fact that this information came in handy following the recent launch of the Motor Third Party- Express Penalty Scheme (MTP-EPS) system, which helps Traffic Officer to capture insurance related details of a given vehicle.

The Authority also conducted a roadshow campaign, where it urged the public to embrace insurance given the emerging risks which have been insurance a necessity.

It should be noted that one of the IRA’s mandate is to carry out public awareness and educate the public about insurance. This is one of the means to increase insurance penetration in the country.