Kampala. A total of Shs200 billion was spent on clearing insurance claimants in the last fiscal year, Insurance Regulatory Authority (IRA) has revealed.
Mr Protazio Sande, the IRA assistant director marketing and development, said insurance companies in totality collected more than Shs600 billion but spent Shs200b remedies for clients.
Basing on these figures, Mr Sande dismissed what he termed as mere talks that insurance companies do not compensate their clients when disasters arise.
“I know the insurance industry is not 100 per cent perfect. But I don’t believe insurers do not clear covers. If that was the case, how come our statistics show Shs200b was used to sort out damages incurred by clients?” Mr Sande asked.
He made the remarks at the annual insurers’ sports gala at Gems Cambridge International in Mutungo, Nakawa Divison, in Kampala last week.
Insurance officials could not give the number of claimants who were settled in the last financial year because they mostly handle policies not individuals.
Mr Sande said most of complainants were ignorant about insurance policies thus cautioning the public not to go for insurance covers they have not clearly understood the conditions.
“All the cases we resolved last year depicted a huge gap between insurers and clients. There is a huge gap about insurance information. People are yet to understand insurance covers,” he said.
Mr Newton Jazire, Lion Insurance managing director, also chairman of organising committee, said the gala was purposely to address gaps between managers and subordinates.
“There is always bit of bureaucracy at our workplaces. But when we are here, we are a team. This gives chance to subordinates to crack jokes with their seniors, thereby promoting work friendship for better performance,” Mr Jazire said.
“Many times people see competitors as enemies. This affects their businesses since they cannot seek advice from their rivals. That is why we bring together all people in insurance business to share ideas and knowledge,” he added.
The gala attracted 1,500 participants from 42 insurance companies who engaged in sports activities.
The number of insurance cases that were resolved at IRA last year out of more than 100 complaints that were registered.