As the local insurance industry struggles to attain significant penetration levels, the Insurance Institute of Uganda (IIU) has kicked off a countrywide public awareness campaign.
According to the institute, the campaign which involves meeting people at their places of work is a move meant for demystifying insurance.
Insurance takes the responsibility of compensating policy holders in case of losses due to incidents such as fire, floods, fraud, political instability, death, accidents, among many others; however, compensation is effected upon compliance in paying annual premiums to the insurers.
According to IIU Chief Executive Officer Elvis Khisa, the biggest challenge is not about telling people about the existence of insurance because most of them know it exists, but they have a wrong belief that insurers don’t pay (compensate) in case of risks.
“We are conducting a series of meetings with people, trying to understand the myths they have about insurance, a basis upon which we prevail to fully explain to them the relevancy of insurance and the way it works,” he said.
Mr Khisa was speaking to the media on the sidelines of traders’ awareness meeting in Kampala recently.
Meanwhile, Insurance companies in the financial year 2013/14 remitted Sh2billion in training levy although some remain non-compliant.
Mr Khisa said a few companies (he did not name) did not comply with the set 0.5 per cent of gross premium contribution to the institution.
Insurance Regulatory Authority chief executive officer, Ibrahim Kaddunabi Lubega called on non-compliant companies to expedite their contribution before the authority takes action.
Uganda has more than 25 insurance companies offering different products and services.