Traders are set to enjoy easy and convenient access to insurance for their goods following the launch of the local marine insurance platform.
Dubbed the Insurance Regulatory Authority (IRA)-Uganda Revenue Authority (URA) Integrated Local Marine Insurance Platform, the online-based system allows traders to buy insurance for imports and exports from insurance companies licensed to operate in Uganda.
Speaking at the launch of the platform at URA headquarters in Nakawa, Kampala on November 6, 2024, the IRA Chief Executive Officer, Alhaj Kaddunabbi Ibrahim Lubega said unlike previously, where traders relied on foreign insurers for coverage leading to substantial capital outflows and challenges in claims processing, the launched platform comes to provide a solution.
“The platform will facilitate prompt and efficient claims processing because importers will now have direct access to local insurers. This will eliminate the complexities of dealing with foreign entities and ensure that businesses can recover swiftly and continue their operations with minimal disruption in the unfortunate event of cargo loss or damage,” Alhaj Kaddunabbi said.
Marine cargo insurance is an insurance policy bought by importers and exporters to protect against lost cargo transported from a foreign country into another country. In case of the unfortunate event that a trader loses the goods or they get damaged in transit from the seller to the buyer, insurance compensates the trader.
In a speech read for him by the Permanent Secretary and Secretary to the Treasury, Mr. Ramathan Ggoobi, the Finance Minister, Hon. Martia Kasaija said applauded IRA, URA and the entire insurance industry for this milestone, saying it will curb capital flight and revenue loss that Government was facing through insurance of imports by foreign insurers.
Quoting the 2015 Inter-Government Standing Committee on Shipping (ISCOS) report, Hon. Kasaija said that Government lost revenue worth Ugx. 60.3 billion as Value Added Tax and Ugx.35 billion as stamp duty through insurance of imports by foreign insurers, that between 2009 and 2013.
“Government is expected to get more revenue, we expect a reduction in commodity prices since traders will no longer have to buy dollars to pay insurance premiums, which increases the cost of importation, translating into high commodity prices,” Hon. Kasaija said in the speech.
