How Ugandans get relief on insurance

 The rise in appeals comes amidst ongoing trust issues within the insurance sector, where policyholders often feel exploited by insurers. Out of the 24 appeals filed, 19 have been heard and resolved.

The cases that are being taken to the Tribunal include Worker’s compensation policy claims, Motor comprehensive insurance policy claims, Life policy claims, all-risk policy for equipment claims, and fidelity guarantee claims. The Fidelity guarantee policy protects businesses from financial losses caused by dishonest acts of employees such as theft, forgery, and embezzlement.

In many cases, the policyholders do not get the expected compensation and the only available means of arbitration is the tribunal.

 A study done a couple of years back shows that dishonesty, inability, and withholding of vital information by insurers has promoted mistrust and dissatisfaction from policyholders.

The survey conducted by the Insurance Regulatory Authority (IRA) in 2023 says up to 40 percent of the current insurance policy holders are not satisfied with service delivery.

The survey revealed that some of the policyholders would be forced to abandon the claims and quit the policy because it did not serve them.

The Insurance Appeals Tribunal is mandated to sort some of such complaints from the policyholders because unsatisfied people have the opportunity to appeal to the Insurance Regulatory Authority, which guides the application to the tribunal. This normally is done within 30 days.

The number of appeals has steadily increased over the years: only three were received in 2022, eight in 2023, and 12 in 2024. However, few complaints make it to the tribunal level.

The other cases are hindered by the time frame, while some policyholders are not aware of the existence of the tribunal.
Recent statistics from the Insurance Regulatory Market report indicate that 239 complaints were registered in 2023, showing a slight increase from 233 in 2022, but only 24 of these reached the tribunal.

“It may seem that the number of appeals is little, but it is not. We are talking about Shs92 billion, and this money is released back into the economy,” said Rita Namakiika Nangono, the chairperson of the Insurance Appeals Tribunal.

She also pointed out that many people are unaware of the Tribunal's existence. However, with more funding expected next year, there is hope that awareness will improve.

 During this year’s annual insurance week, the chief executive officer of the IRA, Mr Ibrahim Kaddunabbi Lubega, noted that the increase in complaints reflects a heightened awareness among consumers regarding their rights.

“If anyone feels dissatisfied with the service from an insurance provider, they should come to our system and log their complaint. This also signifies that more people are purchasing insurance, which naturally means that some issues may arise,” he stated.

The appeals tribunal indicates that it will handle an average of three claims per month this year, translating to approximately 36 claims by the end of the year.

 The tribunal’s efforts highlight the ongoing challenges in the insurance industry and the necessity for greater accountability and consumer advocacy.

 Additionally, the Auditor General's report on the IRA for the audit period ending December 2024 reveals that the IRA released Shs563 billion in the 2023/2024 fiscal year to support the operations of the Insurance Appeals Tribunal.