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IRA to finally implement marine insurance after three postponements
Every importer, under the policy, is required to obtain marine insurance exclusively from Ugandan insurers. Photo / File
What you need to know:
- Marine insurance requires all importers to obtain insurance exclusively from Ugandan insurers, a shift from the current practice
Uganda Revenue Authority has said all systems, including those of (URA), Insurance Regulatory Authority, and Uganda Insurance Association, have fully been integrated to fully implement marine insurance.
Speaking during a stakeholders meeting in Kampala, Mr Asadu Kigozi, the URA acting commissioner for customs, said whatever is required had been put in place for the rollout, noting that extensive activities in change management were underway to ensure a smooth transition from international to local insurers.
“Training for stakeholders directly involved is ongoing to ensure a smooth rollout,” he said, adding that despite the law being passed, implementation had been delayed to accommodate necessary preparations.
The policy requires all importers to obtain marine insurance exclusively from Ugandan insurers, a significant shift from the current practice of relying on international providers.
Initially scheduled for July 2022, the full implementation was postponed to October 2023 to integrate all stakeholders’ systems and address concerns raised by industry players.
However, the deadline was again extended, with IRA now indicating that full implementation will be realised within the third quarter of this year.
Mr Protazio Sande, the IRA director of planning, research, and market development, said the policy shift seeks to protect importers, many of whom would fail to successfully pursue compensation from foreign insurers if they get issues with their merchandise.
The policy will be compulsory for all traders importing goods into Uganda and will be key in expanding Uganda’s insurance potential, retaining premiums within the economy, and ultimately reducing the cost of doing business.
Mr Jemba Mulondo, who represented importers from Kampala City Traders Association, said the new marine insurance policy, which is a move in the right direction, will require stakeholder engagement to enable a smooth transition.
The policy, IRA notes, will enhance compliance and strengthen Uganda’s financial ecosystem.
