Photo: Globaltoursandtravel, Wikimedia Commons, CC BY-SA 4.0The Insurance Act of Uganda
What the 2017 Act means for policyholders
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What the Act is
Published in the Acts Supplement to the Uganda Gazette of 8 June 2017, the Insurance Act, 2017 is "an Act to repeal the Insurance Act, Cap. 213; to amend and replace the law relating to insurance; to provide for the regulation of insurance business; to continue in existence the Insurance Regulatory Authority of Uganda". It has since been consolidated in the revised laws as Cap. 191; section numbers below are those of the 2017 Act as enacted and can differ in the revised edition.
Section 6 divides insurance business into life and non-life. Section 35 creates four licences: insurer, reinsurer, health membership organisation (HMO) and micro-insurer. Motor third-party cover and workers' compensation are not in this Act but in their own laws — see motor insurance and business insurance.
The sections that matter to a policyholder
| Section | Rule | Penalty (1 currency point = UGX 20,000) |
|---|---|---|
| 9(2)–(3) | Only a licensee may insure residents of Uganda, goods or assets in Uganda, vehicles registered in Uganda and imported goods (except personal effects and donations). "All local risks and persons, including imports shall be insured by insurance companies licensed to carryout business in Uganda." | Up to 1,000 currency points (UGX 20 million) |
| 34 | No insurance, reinsurance or HMO business without a licence from IRA; a foreign insurer may not run an office in Uganda without IRA's written approval. | Up to 1,000 points (UGX 20 million); 5,000 points (UGX 100 million) for a foreign insurer's office |
| 63 | "The insured shall pay in full the premiums … on or before the date of inception of the policy or renewal", unless regulations allow another manner. | — |
| 87 | An agent may not act for two insurers in the same class (one life and one non-life insurer at most) without IRA's written approval, nor act as a broker or loss assessor. | — |
| 90 | A broker or agent may only accept a cheque made payable to the insurer, may not take premium by transfer into its own account, and must hand over cash premium by the next working day, without deducting commission. | At least 500 points (UGX 10 million) |
| 133 | No life policy without insurable interest: a parent on a minor, spouses on each other, a dependant on the person who supports him, an employer on an employee. | — |
| 135 | An Ombudsman to arbitrate complaints; until it is set up, IRA performs its functions. | — |
| 136 | The Insurance Appeals Tribunal continues: five members, one of them an advocate. | — |
| 138 | The Policyholders' Compensation Fund continues, to pay "a level of compensation, but not necessarily full compensation" to unpaid claimants of a licensee in liquidation. | — |
| 141 | A training levy on gross direct premium, "charged on the policyholders and collected by licensees" (0.5% according to IRA's 2024 report). | — |
| 142 | Misleading, false or deceptive advertisements, statements or promises to sell insurance are an offence. | Up to 500 points (UGX 10 million) |
| 147 | A licensee must display its licence at its principal place of business and a copy in each branch. | Up to 50 points (UGX 1 million) |
The currency point is set at twenty thousand shillings in Schedule 1 of the Act; the shilling amounts above are our conversion.
What it means in practice
- Buy from a licensed company. The licensed insurers, HMO and micro-insurers are on IRA's list: insurance companies in Uganda. Brokers have their own list: insurance brokers in Uganda.
- Insure imports locally. Section 9 is why goods imported into Uganda must be insured with a Ugandan insurer, not under a foreign marine policy.
- No cover before payment. Section 63 is the legal basis of the "cash and carry" rule: if the premium is not paid by the start date, do not assume you are covered.
- Pay the insurer, not the agent. A cheque to an agent or broker must be made out to the insurer (section 90). For motor third party, payment goes through mobile money or banks — see how much third-party insurance costs.
- Complain to IRA. Pending an Ombudsman, IRA handles complaints and disputes about licensees (section 135), through its online Complaints Bureau — step by step in IRA Uganda complaints.
IRA's role under the Act
Part II continues IRA, with a board and a chief executive officer. Parts V to XIV give it the powers to license insurers, HMOs, micro-insurers, brokers, agents, loss assessors and banks doing bancassurance; to set capital requirements (section 37 leaves the amounts to regulations); to approve premium and commission rates (section 64); to inspect licensees; to issue directives; to take over the management of a failing company; and to wind it up. IRA's August 2026 list names 9 life insurers, 19 non-life insurers and 4 micro-insurers licensed under it.
The rates set under section 64 are why business and motor quotes cannot go below a floor — see business insurance quotes and comprehensive car insurance costs.
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Frequently asked questions
What is the main insurance law in Uganda?
The Insurance Act, 2017 (Act 6 of 2017), revised as the Insurance Act, Cap. 191. It replaced the Insurance Act, Cap. 213 and governs IRA, insurers, HMOs, micro-insurers, brokers, agents and bancassurance.
When did the Insurance Act 2017 come into force?
It was assented to on 23 May 2017 and published in the Gazette on 8 June 2017; section 1 lets the Minister bring provisions into force by statutory instrument.
Must imported goods be insured in Uganda?
Yes. Section 9(3) requires all local risks and persons, including imports, to be insured by insurers licensed in Uganda; section 9(2) exempts personal effects and donations.
Can I pay my premium after the policy starts?
Section 63 requires the full premium on or before the start or renewal date, unless IRA's regulations provide for another manner of payment.
What happens if my insurance company collapses?
Section 138 continues the Policyholders' Compensation Fund, which can pay unpaid claimants of a licensee in liquidation a level of compensation, though not necessarily in full.