Route Cover: For Shs1,000, a passenger boarding a long-distance bus can now secure a financial safety net against the consequences of an accident.
Kampala, Uganda | NEWS CORRESPONDENT | NIC Life Assurance Company Limited has introduced Route Cover, a passenger micro-life insurance product offering travellers on participating long-distance buses life, disability and hospital cash benefits. This was at Skyz Hotel in Naguru on Thursday.
The cover provides Shs10 million for death, Shs10 million for total permanent disability and Shs50,000 hospital cash per day for up to 20 days following an insured accident.
The product is aimed at easing the financial burden families can face after road crashes, including medical expenses, loss of income, disability and funeral costs.
“Insurance must work when people need it most. Route Cover puts meaningful financial protection within reach of ordinary passengers at an affordable cost, while giving families a financial safety net when an unexpected accident occurs,” said Allen Amoko, Chief Executive Officer of NIC Life Assurance Company Limited.
The product was presented to members of the Uganda Bus Owners Association (UBOA) as NIC Life seeks to strengthen collaboration with transport operators on passenger welfare and risk management.
Unlike conventional insurance policies that typically require annual premiums, Route Cover is linked directly to a passenger’s journey. Under the proposed model, passengers purchase the cover alongside their bus ticket, provide their details digitally and receive immediate confirmation.
The cover is intended to complement, rather than replace, existing Motor Third Party and Comprehensive Motor Insurance by providing additional passenger-specific benefits following an insured accident.
“Passenger protection should be part of the journey. We are working with transport operators and stakeholders to build a practical model that makes insurance more accessible to the travelling public,” Amoko said.
The initiative comes as Uganda continues to contend with the human and economic cost of road crashes. While road safety measures focus largely on preventing accidents, victims and families can face financial challenges long after a crash.
A passenger who suffers permanent disability may lose income while facing medical expenses, while the death of a breadwinner can leave a family struggling to meet basic needs.
Apollo Kashanku, Assistant Commissioner for Transport Regulation and Safety at the Ministry of Works and Transport, said passenger protection should extend beyond road safety to financial support when accidents occur.
“Our responsibility does not end with ensuring that passengers reach their destinations safely. When accidents occur, we must also consider the financial burden placed on victims and their families. Affordable protection such as Route Cover can provide a critical safety net at a time when families are most vulnerable,” Kashanku said.
He urged transport operators and industry stakeholders to support initiatives that strengthen passenger welfare.
“A Shs1,000 cover may appear small, but the protection it provides can be significant when a family is facing uncertainty. We need solutions that put passenger welfare and financial resilience at the centre of Uganda’s public transport system,” he said.
NIC Life is engaging bus operators and other stakeholders on the implementation model, including passenger registration, premium collection, pilot arrangements and eventual rollout.
Amoko said the initiative is intended to make insurance more relevant and accessible to ordinary Ugandans.
“Our ambition is not simply to sell more insurance. It is to make insurance matter more in the lives of ordinary Ugandans. If Shs1,000 can provide meaningful financial support to a passenger or family at a moment of crisis, then we have moved insurance closer to the people it is meant to protect,” he said.
As Route Cover moves towards a pilot, NIC Life says the product offers a simple proposition: a small contribution during a journey that could provide significant financial support when the unexpected happens.
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