Uganda directs insurance regulator to force local marine cargo cover

Uganda Finance Minister Matia Kasaija has directed Uganda’s insurance industry regulator to ensure that all companies importing goods into the country get their marine cargo cover locally, beginning immediately. Uganda Insurers Association CEO Miriam Magala said that there would be no need for a new law to implement the marine cargo cover. She said that all the Insurance Regulatory Authority (IRA) has to do is work with government agencies such as the Uganda Revenue Authority to ensure that importers are checked to confirm the directive is adhered to.

“The Insurance Regulatory Authority will effective July 1, 2017, administratively enforce and implement provisions in the Insurance Act under Section (3)(2),” he said. Under this section, only companies licensed in Uganda can issue insurance policies for ships, aircraft or other vehicles registered in the country. These firms are also the only ones that can insure goods imported from other countries into Uganda. “Implementation of this policy will boost Uganda’s premiums, just like it did in Kenya,” said Magala.

Kenya started implementing such a policy in January this year and Ms Magala claimed that in just two months local insurance players registered a 40% growth in marine cargo insurance premiums.