The Insurance Regulatory Authority of Uganda, has announced that it’s now mandatory for everyone to secure his vehicle with a comprehensive insurance policy.
Quoting section 12 (1) (b) of the Insurance Act 2017 (Act), that gives green lights to the Authority to establish standards for the conduct of business in the Insurance Sector, Alhaj Kaddumabbi Ibrahim Lubega CEO of Uganda Insurance Regulatory Authority noted that the decision is as a result of vehicle theft increment.
The development has been confirmed via a statement that reads as below;
“To: Non-life insurers (See Distribution List Attached)
Dear Sir/Madam,
DIRECTIVE ON UNDERWRITING OF MOTOR COMPREHENSIVE INSURANCE POLICIES.
1. Section 12 (1) (b) of the Insurance Act 2017 (Act), requires the Authority to establish standards for the conduct of business in the Insurance Sector and to issue such guidance as it considers appropriate.
2. The Authority has noted with concern, a significant increase in the number of stolen motor vehicles which cannot be recovered. This has in the long run adversely affected the industry by increasing the cost of Motor Comprehensive insurance.
3. For the above reasons and pursuant to Section 121(1) (b) of the Act, the Authority hereby directs all non-life insurers to ensure that with effect from 1st January 2021, all Motor Comprehensive policies renewed/issued MUST be for motor vehicles which are fitted with anti-theft car tracking systems/gargets.
The cost of installation of the car tracking systems to be borne by the Policyholder.
4, As you are aware, this may eventually, lead to a reduction in the premium rates chargeable for Motor Comprehensive Insurance.
5. Please comply.
Yours faithfully, INSURANCE REGULATORY AUTHORITY OF UGANDA
Alhaj Kaddumabbi Ibrahim Lubega CHIEF EXECUTIVE OFFICER
Copy: The Chief Executive Officer of Uganda Insurers Association
The Chairperson Insurance Brokers Association of Uganda (IBAU)”
