Insurance Act, 2017
The Minister may, by statutory instrument, appoint the date(s) when this Act (or particular provisions) comes into force.
AI-assisted research synopsis — verify against the official legal text below.
- Jurisdiction
- Uganda
- Instrument
- Act or statute
- Citation
- Act 6 of 2017
- Version
- 8 Jun 2017
- Language
- en
- Official source
- View official record ↗
Source attribution: Source: Uganda Legal Information Institute
Statute overview
About this statute
The Minister may, by statutory instrument, appoint the date(s) when this Act (or particular provisions) comes into force. Provides definitions of terms used in the Act. Defines "bancassurance" as arrangements where a financial institution distributes an insurer's or HMO's insurance products, acts as agent, or enters group/master policies as policyholder so its customers obtain cover. Defines 'unauthorised business' as carrying on any business or activity that requires a licence without a valid licence issued by the Authority. Defines when an insurer, HMO, or insurance intermediary is insolvent.
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Legal text
Provisions of Insurance Act, 2017
Showing 158 of 158
Part I
Preliminary
- 1 Verify source ↗
Preliminary - Commencement
AI-assisted research summary: The Minister may, by statutory instrument, appoint the date(s) when this Act (or particular provisions) comes into force.
Section Commencement Section This Act shall come into force on such date as the Minister may, by statutory instrument appoint; but the Minister may appoint different dates for different provisions of this Act. - 2 Verify source ↗
Preliminary - Interpretation
AI-assisted research summary: Provides definitions of terms used in the Act.
Section Interpretation Section In this Act, unless the context otherwise requires— “ actuary " means a person who is a member or a fellow of a professional institute, faculty, society or association of actuaries, and recognized by the Authority . “ Africa-Re " means the African Reinsurance Corporation established under the Agreement Establishing the African Reinsurance Corporation; “ Authority " means the Insurance Regulatory Authority of Uganda continued in existence by this Act; “ bancassurance authorisation ” means an authorisation to undertake bancassurance; “ Board " means the Board of the Authority ; “ Chief Executive Officer " means the Chief Executive Officer of the Authority ; “ commercial bank " has the meaning assigned to it in the Financial Institutions Act, 2004; “ control ", in relation to a licensee , has the meaning specified in the Regulations; “ constituting documents " means— (a) in the case of a company, its memorandum and articles of association; and (b) in the case of any other entity, such document or documents that constitute and govern the entity;" " control function " means— (a) in relation to an insurer, a function specified in section 61 (1); (b) in relation to a health membership organisation , a function specified in section 61 (2); (c) in relation to an insurance intermediary , a function specified in section 85 (6); " currency point " has the value assigned to it in Schedule 1; " customer " means— (a) in the case of an insurer, a policyholder of the insurer or a beneficiary under an insurance contract entered into by the insurer, as insurer; (b) in the case of a health membership organisation , a member of the health membership organisation ; (c) in the case of a financial institution undertaking bancassurance, a person to whom the financial institution provides, agrees to provide or has provided a service for which bancassurance authorisation is required; (d) in the case of an insurance intermediary , a person to whom the insurance intermediary provides, agrees to provide or has provided a service for which an insurance intermediary licence is required; " direct insurance business ” means the business of undertaking liability as insurer under direct insurance contracts; “ direct insurance contract " means an insurance contract that is not a reinsurance contract ; “ director " means a member of the governing body of a body corporate; " distribution ” has the meaning specified in section 57 ; " domestic supervisory authority " means an authority in Uganda which performs functions corresponding or similar to those performed by the Authority or regulates or supervises any type of financial service; “ financial institution " has the meaning assigned to it in the Financial Institutions Act, 2004. " financial statement ", in relation to a licensee that is a body corporate, means— (a) a statement of the financial position of the licensee as at the last date of the financial year; (b) a statement of the financial performance of the licensee in relation to the financial year; (c) a statement of cash flows for the licensee in relation to the financial year; (d) any statement relating to the prospects for the business of the licensee ; “ fit and proper person ” means a fit and proper person determined in accordance with the criteria specified in Schedule 2; “ foreign insurer " means a foreign reinsurer is that incorporated and licensed as a reinsurer under the laws of a country other than Uganda except Africa Re and PTA Re; " foreign reinsurer " means a foreign insurer whose primary business is the business of entering into reinsurance contracts, as reinsurer ; “ foreign supervisory authority " means an authority in a jurisdiction outside Uganda which performs functions corresponding or similar to those performed by the Authority or regulates or supervises any type of financial service; “ former licensee " means a person who has at any time been a licensee but has ceased to be so; " group in relation to a group of which a licensed insurer is a member " means a number of companies that do business in different markets under common administrative or financial control , whose members are linked by relations of interpersonal trust on the basis of similar personal ethnic or commercial background; " health benefit plan " means a contract satisfying the criteria prescribed by the Minister by regulations; " health membership organisation " or "HMO” means an organisation engaged in the business of undertaking liability in respect of funding health care, by way of membership; " insurance agent " means a person appointed and authorised by an insurer to solicit for applications for insurance or negotiate insurance coverage on behalf of the insurer or to perform other functions of an insurance nature that may be assigned to him or her by the insurer, and who in consideration for his or her services receives commission or other remuneration from the insurer; “ insurance broker " means a person, not being an insurance agent , who acting as an independent contractor for a commission or remuneration— (a) negotiates or arranges insurance contracts on behalf of an insurer or prospective insured, other than himself or herself; or (b) advises an insured or prospective insured on his or her insurance needs and requirements; " insurance business ” means the business of undertaking liability as an insurer or a reinsurer under an insurance contract ; “ insurance contract " means a contract under which one party, known as the insurer, in exchange for a premium , agrees with another party, known as the policy holder , to make a payment, or provide a benefit to the policy holder or another person on the occurrence of a specified uncertain event which, if it occurs, will be adverse to the interests of the policy holder or to the interests of the person who will receive the payment or benefit; “ insurance intermediary " means an insurance agent , an insurance broker , a risk advisor , a loss assessor , a third party administrator , or a reinsurance broker, “ insurance training levy " means the levy specified in section 141 ; " international financial reporting standards " means the standards issued, from time to time, by the International Accounting Standards Board ; “ key person in a control function " means an individual appointed to undertake, or have responsibility for and oversight of, a control function ; “ licence " means a licence under this Act and includes a bancassurance authorisation ; “ licenced insurer ” means a person who holds an insurer's licence issued under section 35 (l)(a); " licensee " means a person who holds any licence issued under this Act; “ life insurance business " means insurance business of a class specified as life insurance business under this Act; “ life insurer " means an insurer whose licence authorises the insurer to carry on life insurance business ; “ loss assessor " means a person licensed under this Act to undertake the business of assessing and investigating losses on behalf of an insurer or insured; " micro insurance " means insurance for the protection of low-income people against specific perils in exchange for regular premium payments proportionate to the likelihood and cost of risk involved; " micro insurance agent " means a person holding a microinsurance agent licence ; " micro insurance organisation " means a person holding a micro insurance organisation licence ; " Minister " means the Minister responsible for finance; " mutual insurer " means a company which by its constitution only policy holders are members of the company and which has no share capital; " national reinsurance company " means the company approved by the Authority as a national reinsurance company of which more than fifty one percent of the shares of the company are owned by licensees incorporated in Uganda or the decisions of the company are arrived at by the majority who arc licensees incorporated in Uganda; " non-life insurance business " means insurance business of a class prescribed as non-life insurance business; " non-life insurer " means an insurer whose licence authorises the insurer to carry on non-life insurance business : “ policy holder " in relation to an insurance contract or a health benefit plan , means the person who entered into the insurance contract or health benefit plan with the insurer or HMO, if the rights of that person under the contract have been assigned or transferred, the person who has those rights; “ premium " means the consideration for entering into an insurance contract ; “ Reinsurance broker " is a specialist intermediary involved in the placing of reinsurance; “ reinsurance business " means the business of undertaking liability as a reinsurer under reinsurance contracts; " reinsurance contract " means an insurance contract under which one insurer, called the reinsurer , indemnifies, or otherwise compensates, another insurer, called the cedant, against losses on one or more contracts of insurance entered into by the cedant; " reinsurer " means a person holding a reinsurers licence ; " repealed Act ” means the Insurance Act, Cap. 213; “ risk advisor " means a person who, by way of business, assesses and advises on insurable risks; " secretary " means the secretary to the Authority appointed under this Act; “ segregated life fund " means a fund established under section 53 ; " senior manager ", in relation to a licensee , means an individual appointed by the licensee who— (a) acts as the chief executive officer of the licensee or occupies an equivalent position under a different name; (b) holds a position that requires the individual to be answerable to the directors of the licensee ; (c) has responsibilities that include direct involvement in the licensee 's management or decision making process at a senior level: or (d) holds such other position or undertakes such other function and duties as may be prescribed by the Authority . “ significant owner " means a person who exercises control over a body corporate within the meaning of regulations made under this Act; “ statutory manager " means a person appointed under section 125 (1) of this Act by the Authority as management take-over to look after the policyholders’ interests by managing the business assets and affairs of the insurer, taking into custody any of its assets and any of its subsidiary’s assets; “ takaful insurance " means insurance conducted in accordance with Sharia'h principles; " third party administrator " means a person who provides services to a HMO or a licensed insurer in relation to the administration of health benefit plans or health insurance policies; “ Tribunal " means the Insurance Appeals Tribunal established under the repealed Act and continued in existence in accordance with this Act; “ valid licence " means a licence that authorises the type of activity or business being carried on by the holder of the licence for the particular time period; “ ZEP-RE ” means ZEP-RE (PTA Reinsurance Company) established under an Agreement of the Heads of State and Governments of the COMESA Region on 21st November 1990. - 3 Verify source ↗
Preliminary - Meaning of “bancassurance”
AI-assisted research summary: Defines "bancassurance" as arrangements where a financial institution distributes an insurer's or HMO's insurance products, acts as agent, or enters group/master policies as policyholder so its customers obtain cover.
Section Meaning of “bancassurance” Section Without limiting the general effect of subsection (1), bancassurance includes an arrangement under which— Subject to subsection (3), bancassurance is an arrangement between a financial institution and an insurer or HMO under which the financial institution distributes to its customers, through its distribution channels, an insurance product of the insurer or HMO. a financial institution acts as an agent for the insurer or HMO; or a financial institution enters into a group or master insurance contract , as policy holder , with the intention that the customers of the financial institution , or a class of them, obtain insurance cover under the contract. An insurance contract entered into by a financial institution as a policyholder where the sole purpose of the policy is to provide benefits to employees of the financial institution , whether or not the employees are required to contribute towards the cost of the contract shall not be taken as bancassurance. For purposes of bancassurance, “Financial Institution" means a company classified as a Bank under the Second Schedule to the Financial Institutions Act 2004 and licensed as a bank by the Central Bank and includes a commercial bank , merchant bank, mortgage bank and post office savings bank; or a company licensed by the Central Bank as a Micro Finance Deposit-Taking under the Micro Finance Deposit-Taking Institutions Act, 2003. - 4 Verify source ↗
Preliminary - Meaning of “unauthorised business”
AI-assisted research summary: Defines 'unauthorised business' as carrying on any business or activity that requires a licence without a valid licence issued by the Authority.
Section Meaning of “unauthorised business” Section Subject to any exemption granted in accordance with this Act, a person carries on unauthorised business where the person carries on any business or activity for which a licence is required without a valid licence issued by the Authority . - 5 Verify source ↗
Preliminary - Meaning of “insolvent”
AI-assisted research summary: Defines when an insurer, HMO, or insurance intermediary is insolvent.
Section Meaning of “insolvent” Section An insurer or HMO is insolvent where the insurer or HMO does not meet the minimum solvency capital requirements prescribed in the Regulations. An insurance intermediary is insolvent if the value of its liabilities exceeds the value of its assets or is unable to pay its debts as they fall due for payment. - 6 Verify source ↗
Preliminary - Classification of insurance business
AI-assisted research summary: Insurance business is defined to include life insurance business and non-life insurance business.
Section Classification of insurance business Section For the purposes of this Act, insurance business comprises life insurance business and non-life insurance business . - 7 Verify source ↗
Preliminary - Insurers to be bodies corporate
AI-assisted research summary: A person must not carry on insurance business in Uganda except specified incorporated companies, insurance corporations, cooperative insurance societies, mutual insurers, and certain foreign reinsurers and foreign insurers under stated conditions.
Section Insurers to be bodies corporate Section Subsection (1) does not apply to a— A person shall not carry on insurance business in Uganda except a company incorporated under the Companies Act, 2012, an insurance corporation established by law, a cooperative insurance society registered under the Cooperative Societies Act or a mutual insurer . foreign reinsurer that enters into a reinsurance contract with a licensed insurer or a retrocession agreement with a licensed reinsurer ; or foreign insurer that carries on insurance business in accordance with an exemption granted by the Authority under section 34 (4). - 8 Verify source ↗
Preliminary - Formation of mutual insurers
AI-assisted research summary: Any twenty-five but not more than three hundred persons may form a mutual insurer by subscribing their names to a memorandum; a person who wishes to join must complete and sign an instrument of subscription stating the subject matter and amount of insurance desired.
Section Formation of mutual insurers Section The memorandum of association of a mutual insurer shall state— Any twenty five persons but not more than three hundred may, by subscribing their names to a memorandum of association, form a mutual insurer . the insurance business or any class of the insurance business which is to be carried on; the name of the company, including the expression “mutual insurance company” in that name; the location of the principal office of the company; the limitation of liability of its members; the amount of guarantee capital; the rights of the contributors towards the guarantee capital; the methods of clearing the guarantee capital; the particulars of the governing body of the company; the method of distributing surplus; the articles and rules governing the company. Where a person desires to become a member of a mutual insurer , he or she shall enter into the instrument of subscription for members, the subject matter and the amount of insurance desired and he or she shall affix his or her signature to the instrument. An application for licensing a mutual insurer under this Act shall be made within a period that may be prescribed by the Authority . - 9 Verify source ↗
Preliminary - Use of the word “insurance” and persons to carry on insurance business
AI-assisted research summary: Section Use of the word “insurance” and persons to carry on insurance business Section A person shall not issue any insurance policy, other than a person licensed under this Act, on— Subject to subsection (2) and to any exemptions
Section Use of the word “insurance” and persons to carry on insurance business Section A person shall not issue any insurance policy, other than a person licensed under this Act, on— Subject to subsection (2) and to any exemptions specified in the Regulations, a person shall not, except with the prior written approval of the Authority , use the words “insurance", “assurance” or “reinsurance” or any derivations in English or any other language as part of his or her business name other than a licensee , provided that the name does not suggest that the licensee carries on any licensable business other than the business that it is authorised by its licence to carry on. persons who at the time of effecting the insurance contract are residents of Uganda; goods or assets situated in Uganda; ships, aircraft or other vehicles registered in Uganda; or goods imported from other countries except personal effects and donations. All local risks and persons, including imports shall be insured by insurance companies licensed to carryout business in Uganda. The regulations may prescribe other words or phrases to which subsection (1) applies. A person who contravenes this section is liable to a fine not exceeding one thousand currency points.
Part II
The Insurance Regulatory Authority of Uganda
- 10 Verify source ↗
The Insurance Regulatory Authority of Uganda - Continuance of the Insurance Regulatory Authority of Uganda
AI-assisted research summary: The Insurance Regulatory Authority of Uganda continues as a corporate body; it may acquire and dispose of property, sue, and do acts for its functions; the Board determines the form of its common seal which shall be applied in accordance with Schedule 3.
Section Continuance of the Insurance Regulatory Authority of Uganda Section The Authority is a body corporate with perpetual succession and a common seal and may for the purposes of discharging its functions under this Act— The Insurance Regulatory Authority of Uganda established under the repealed Act is continued in existence in accordance with this Act. acquire, hold or dispose of movable and immovable property; sue and be sued in its corporate name; do all acts and things that a body corporate may lawfully do. The common seal of the Authority shall be in a form determined by the Board . The common seal of the Authority shall be applied in accordance with Schedule 3. - 11 Verify source ↗
The Insurance Regulatory Authority of Uganda - Objectives of the Authority
AI-assisted research summary: The Authority must have regard to a set of objectives and consumer-protection considerations when regulating the insurance sector.
Section Objectives of the Authority Section The objectives of the Authority are— In considering the measures to be taken to protect persons who are, or who may become, policy holders of insurers or customers of other licensees, the Authority shall have regard to— to promote and facilitate the maintenance of a sound, efficient, fair, transparent and stable insurance sector; to promote and uphold public confidence in the insurance sector; to protect the interests of persons who are, or who may become, policy holders of insurers or customers of other licensees; to regulate and supervise licensees on a risk-sensitive basis; to promote effective competition in the insurance sector in the interests of consumers, the growth and development of the insurance sector and the development of an inclusive insurance sector. the differing degrees of experience and expertise that different policy holders and customers may have in relation to insurance products and the insurance sector; the need that policy holders and customers may have for advice and accurate information; and the general principle that policy holders and customers should take responsibility for their informed decisions. In seeking to promote the development of an inclusive insurance sector in Uganda, the Authority shall have regard to the need to ensure that the regulation and supervision of relevant providers, products and services is proportionate. - 12 Verify source ↗
The Insurance Regulatory Authority of Uganda - Functions of the Authority
AI-assisted research summary: Lists the functions of the Insurance Regulatory Authority of Uganda, including regulatory, supervisory, licensing, investigatory, advisory, complaint-handling, cooperative and public-education roles, and states that the Authority shall be independent subject to the Act.
Section Functions of the Authority Section For the attainment of its objectives, the functions of the Authority are— In undertaking its functions, the Authority shall have regard to— to regulate, supervise, monitor and control the insurance sector; to establish standards for the conduct of business in the insurance sector and to issue such guidance as it considers appropriate; to control entry to and exit from the insurance sector through the issuance, variation or revocation of licences in accordance with this Act; to take appropriate action against persons carrying on unauthorised business; to supervise licensees on an individual basis and, where appropriate, on a group wide and cross border basis; to monitor compliance with, or investigate conduct that constitutes or may constitute a contravention of this Act; to take action in relation to licensees that are insolvent or likely to become insolvent; to monitor the operation of the insurance sector and to conduct inquiries and investigations into any matter relating to the insurance sector or participants in the insurance sector; to keep under review the effectiveness of this Act and regulations and, where appropriate, initiate and make proposals to the Minister concerning this Act and other legislation relevant to the insurance sector; to receive and resolve insurance related complaints; to receive complaints from members of the public on the conduct of a person licensed under this Act and arbitrate and grant restitution to the complainant, as may be possible; to co-operate with, and provide assistance, in accordance with the law, to local and foreign supervisory authorities and law enforcement authorities; to perform such other duties, which in the opinion of the Authority , are necessary or expedient for the discharge of its functions under this Act; to advise Government on adequate insurance protection and security for national assets and national properties; to promote awareness of, and undertake public education concerning, the insurance sector. the need to implement international standards and best practice in relation to the regulation and supervision of the insurance sector; effective risk management by insurers and other licensees Subject to this Act, the Authority shall be independent and shall not, in the performance of its duties, be subject to the direction or control of any person or authority. - 13 Verify source ↗
The Insurance Regulatory Authority of Uganda - Power to cooperate with other authorities
AI-assisted research summary: The Authority may share information or provide assistance to domestic or foreign supervisory or law enforcement authorities on written request, may take into account various factors before deciding, may require written undertakings for reciprocal assistance, and reserves the right not to provide requested information.
Section Power to cooperate with other authorities Section The Authority may, on the written request of any domestic or foreign supervisory authority , or domestic law enforcement authority— The Authority may, in deciding whether to exercise the power conferred on it by this section, take into account— A decision by the Authority shall be made only where the Authority — is satisfied that the domestic or foreign supervisory authority is subject to adequate legal restrictions on further disclosure of the information and documents and that it will not, without the written permission of the Authority — undertake on-site inspections or obtain information or documents; or appoint one or more competent persons to investigate any matter that requires investigation. a domestic and in the case of a foreign supervisory authority , whether reciprocal assistance would be given to the Authority in the country or territory of the foreign supervisory authority ; the nature and seriousness of the matter to which the request for assistance relates and whether the assistance can be obtained by other means; the relevance of the information or documentation to the enquiry to which the request relates; whether it is otherwise appropriate, in the interests of customers or prospective customers of a licensee and the public interest, to provide the assistance sought; and such other matters as the Authority considers relevant. For the purposes of subsection (2)(a), the Authority may require the domestic or foreign supervisory authority making the request to give a written undertaking, in such form as the Authority may require, to provide reciprocal assistance to the Authority . has received satisfactory assurances from the domestic or foreign supervisory authority that any information and documentation provided to it will not be used in any criminal proceedings against the person providing it, other than proceedings for an offence of perjury or any equivalent offence; the domestic or foreign supervisory authority undertakes to make such contribution towards the cost of exercising its powers as the Authority considers appropriate; and disclose information or documents provided to it to any person other than an officer or employee of the Authority engaged in the exercise of any of its supervisory functions; or take any action on information or documents provided to it. The Authority reserves the right not to provide the information requested. The Authority may share information with other supervisors and also inform them before taking any action that might reasonably be considered to affect group entities under their supervision and where prior notification is not possible, the Authority shall inform the relevant supervisors as soon as possible after taking action. - 14 Verify source ↗
The Insurance Regulatory Authority of Uganda - Board of the Authority
AI-assisted research summary: The Authority must have a Board as its governing body; the Minister shall appoint the chairperson and certain members; the chief executive officer shall have no right to vote.
Section Board of the Authority Section The Board shall comprise of— The Authority shall have a Board , which shall be the governing body of the Authority . a chairperson; a representative of the ministry responsible for finance, who shall be at the rank of Commissioner or above; a representative of the Governor of the Bank of Uganda; a representative of the Insurance Training College; a representative of the ministry responsible for health; two persons representing the public, one of whom shall be the deputy chairperson; the Chief Executive Officer of the Capital Markets Authority ; and the Chief Executive Officer of the Uganda Retirements Benefits Regulatory Authority ; and the chief executive officer, who shall have no right to vote. The chairperson and the persons referred to in subsection (2)(f) shall be appointed by the Minister from among persons who have knowledge, experience and skills in insurance, banking, finance and actuarial science. The Minister shall, when appointing the members of the Board , ensure that there is a balance of skills and gender. - 15 Verify source ↗
The Insurance Regulatory Authority of Uganda - Disqualification from appointment as member of the Board
AI-assisted research summary: A person shall not be appointed to the Board if they meet any of the listed disqualifying conditions (criminal convictions, bankruptcy, certain public or company roles, or other disqualifications).
Section Disqualification from appointment as member of the Board Section A person shall not be appointed to the Board who— has been convicted of an offence other than a traffic offence under this Act or of an offence involving dishonesty or fraud by a competent court in Uganda or elsewhere; has been adjudged bankrupt under any law in force in Uganda and has not been discharged; has been convicted of an offence and sentenced to a term of imprisonment for six months or more without the option of a fine by a competent court in Uganda or elsewhere; or is a Member of Parliament, a Minister or a member of a local government council; is a public officer, except those stated under section 14 (2)(b)(c)(g)(h) and (i); is a director or employee of a licensee or who has a financial interest in a licensee , including a shareholder of a licensee ; is disqualified from acting as a director of a company under the Companies Act, 2012. - 16 Verify source ↗
The Insurance Regulatory Authority of Uganda - Tenure of office of members of the Board
AI-assisted research summary: Sets board members' three-year term, eligibility for one reappointment, resignation process with one month notice, grounds for suspension or removal by the Minister, member notice obligations if certain grounds arise, procedural rights to be heard, replacement appointment rule, and public disclosure of disqualification reasons.
Section Tenure of office of members of the Board Section The Minister may, at any time suspend or remove a member of the Board only— A member of the Board shall hold office for three years and is eligible for reappointment for one further term. The members of the Board shall hold office on terms and conditions specified in their instruments of appointment. A member of the Board may, at any time, resign from his or her office in writing addressed to the Minister , giving notice of not less than one month. for inability to perform the functions of his or her office arising from infirmity of body or mind; for misbehaviour or misconduct; for incompetence; for absence, without prior permission of the chairperson, or without reasonable cause to the satisfaction of the Minister , from more than four consecutive meetings of the Board ; for bankruptcy or insolvency; for conviction of a criminal offence, in Uganda or elsewhere, in respect of which the maximum penalty exceeds six months imprisonment without the option of a fine; where information relating to the conduct of a member, which could have precluded his or her appointment if it had been made available to the Minister , is brought to the attention of the Minister ; or where any of the grounds for disqualification under section 15 become applicable to a member subsequent to his or her appointment. If a member of the Board is or becomes aware that any of the grounds for suspension or removal specified in subsection (4)(e), (f), (g) or (h) apply to him or her, the member shall, within fifteen days, give written notice to the Minister and the Chairperson or, if the member is the Chairperson, the Deputy Chairperson. Where it appears to the Minister that there is cause to remove a member under subsection (4), the Minister shall notify the member concerned in writing and shall give the member an opportunity to submit his or her explanation to the Minister and to be heard in person or represented by his or her lawyer. Where a member dies or is removed from office under this section, the Minister shall appoint another person qualified, in accordance with the appointment provisions of this Act, to replace the member and the member appointed shall hold office for the remainder of the term of the previous member. The Minister shall publicly disclose the reasons for the disqualification of any member of the Board . - 17 Verify source ↗
The Insurance Regulatory Authority of Uganda - Remuneration of members of the Board
AI-assisted research summary: The chairperson and members of the Board must be paid remuneration determined by the Minister and specified in their instruments of appointment.
Section Remuneration of members of the Board Section The chairperson and members of the Board shall be paid such remuneration determined by the Minister and specified in their instruments of appointment. - 18 Verify source ↗
The Insurance Regulatory Authority of Uganda - Functions of the Board
AI-assisted research summary: The Board shall direct and supervise the Authority, set governance, controls and staff appointment rules, approve plans and financial statements, advise Government on insurance policy, oversee operations, guide the CEO and perform other functions under the Act.
Section Functions of the Board Section Without limiting the general effect of subsection (1), the Board shall— ensure that the Authority establishes and maintains— The Board shall be responsible for the general direction and supervision of the Authority . advise the Government on policy matters concerning insurance generally, and assist in the co-ordination and implementation of the government policy relating to insurance; oversee the operations and management of the Authority ; an appropriate governance framework; and adequate procedures; and controls, including an internal audit function and rules governing the disclosure of interests by employees, consultants, experts, advisors and agents of the Authority ; provide guidance to the Chief Executive Officer and staff of the Authority ; establish and approve rules and procedures for appointment, promotion, termination, discipline and terms and conditions of service of the staff of the Authority ; review and approve strategic, business and operating plans, budgets, reports and audited financial statements of the Authority ; perform any other function conferred by this Act or which may be necessary for the proper implementation of this Act. - 19 Verify source ↗
The Insurance Regulatory Authority of Uganda - Meetings of the Board and related matters
AI-assisted research summary: Schedule 3 has effect in relation to meetings of the Board and other matters provided for in that Schedule.
Section Meetings of the Board and related matters Section Schedule 3 has effect in relation to meetings of the Board and other matters provided for in that Schedule. - 20 Verify source ↗
The Insurance Regulatory Authority of Uganda - Committees of the Board
AI-assisted research summary: The Board may appoint committees, delegate powers to them, require them to act jointly, pay members allowances with the Minister's written approval, and committees may regulate their own procedure subject to the Board's direction; a committee shall consist of a chairperson and other persons as the Board determines.
Section Committees of the Board Section The Board may appoint committees— to inquire into and advise the Board on any matter concerning the functions of the Authority as the Board may refer to the committee; to exercise such powers or perform such functions of the Authority as the Board may delegate or refer to the committee. A committee appointed under subsection (1) shall consist of a chairperson and other persons whether members of the Board or not as the Board may determine. The Board may require a committee appointed under this section to act jointly or in co-operation with any other committee. The members of a committee appointed under this section may be paid such allowances as the Board may, with the written approval of the Minister , determine. Subject to any direction given by the Board , a committee appointed under this section may regulate its own procedure.
Part III
Staff of the Authority
- 21 Verify source ↗
Staff of the Authority - Chief Executive Officer
AI-assisted research summary: The Authority must have a Chief Executive Officer appointed by the Minister on the Board's recommendation; the CEO must meet integrity and professional qualifications, holds office for five years and may be reappointed once; specified events and Ministerial removal (with notice and opportunity to be heard) cause cessation.
Section Chief Executive Officer Section The Chief Executive Officer shall cease to hold office if— The Authority shall have a Chief Executive Officer who shall be appointed by the Minister on the recommendation of the Board on terms and conditions specified in his or her instrument of appointment. The Chief Executive Officer shall be a person of high moral character and proven integrity, with relevant professional qualifications and experience relating to the functions of the Authority . The Chief Executive Officer shall hold office for five years and is eligible for reappointment for one further term. he or she resigns; he or she is declared bankrupt or insolvent or has made an arrangement with his or her creditors; he or she is convicted of a criminal offence, in Uganda or elsewhere, in respect of which the maximum penalty exceeds six months imprisonment without the option of a fine; he or she is removed from office by the Minister , on recommendation of the Board , for incompetence, inability to perform the functions of his or her office arising from infirmity of body or mind; or he or she is removed from office by the Minister for misbehaviour, misconduct or incompetence. Where it appears to the Minister that there is cause to remove the Chief Executive Officer under subsection (4), the Minister shall notify the Chief Executive Officer in writing and shall give the Chief Executive Officer an opportunity to submit his or her explanation to the Minister and to be heard in person or represented by his or her lawyer. - 22 Verify source ↗
Staff of the Authority - Functions of the Chief Executive Officer
AI-assisted research summary: The Chief Executive Officer must manage the Authority's day-to-day operations, implement policies and plans, manage funds and staff, develop operating and strategic plans, act as accounting officer, and is answerable to the Board, subject to the Act and Board supervision.
Section Functions of the Chief Executive Officer Section Subject to this Act and to the general supervision and control of the Board , the Chief Executive Officer is responsible for— The Chief Executive Officer is responsible for the day to day operations and administration of the Authority and shall be the accounting officer of the Authority . the implementation of the policies and programmes of the Authority and reporting on them to the Board ; the proper management of the funds and property of the Authority ; the organisation and control of the staff of the Authority ; the development of an operating plan to guide the Authority in achieving its objectives; the development of an economic, efficient and cost effective internal management structure; proposing and implementing the strategic plan, business plan and annual plan of the Authority ; ensuring that the policies of the Authority are implemented and that the agreed objectives, targets and service standards are met; providing advice as required on all matters within the Authority ’s responsibility; and performing any other duty necessary for the implementation of this Act as may be assigned to him or her by the Board . The Chief Executive Officer is answerable to the Board . - 23 Verify source ↗
Staff of the Authority - Secretary to the Authority
AI-assisted research summary: The Board shall appoint a secretary to the Authority; the secretary must arrange Board business, take minutes, keep records, be answerable to the Chief Executive Officer in performing functions, and possess relevant professional qualifications and experience.
Section Secretary to the Authority Section The secretary to the Authority shall be responsible for— There shall be a secretary to the Authority who shall be appointed by the Board on terms and conditions specified in the instrument of appointment. arranging the business at meetings of the Board ; taking the minutes of the meetings of the Board ; keeping the records of the decisions and other policy records of the Board . In the performance of his or her functions, the secretary is answerable to the Chief Executive Officer . The secretary to the Authority shall possess the relevant professional qualifications and experience relating to the functions of the Authority . - 24 Verify source ↗
Staff of the Authority - Other officers and staff of the Authority
AI-assisted research summary: The Board may appoint officers and staff; appointed employees must hold office on Board-determined terms; the Board must regulate appointments, terms of service and discipline.
Section Other officers and staff of the Authority Section The Board may appoint such officers and staff of the Authority as may be necessary for the proper and efficient performance of the functions of the Authority . The employees appointed under this section shall hold office on terms and conditions determined by the Board and specified in their instruments of appointment. The Board shall regulate the manner of appointment, terms and conditions of service and the discipline of the staff appointed under this section.
Part IV
Financial provisions
- 25 Verify source ↗
Financial provisions - Funds and sources of revenue of the Authority
AI-assisted research summary: The Authority's funds come from specified sources; every licensee must pay an annual contribution set by the Authority via regulations after specified consultations; the Authority must retain certain monies and use them under section 29(3) of the Public Finance Management Act.
Section Funds and sources of revenue of the Authority Section The funds and sources of revenue of the Authority shall consist of— money appropriated by Parliament for the purposes of the Authority ; grants, gifts or donations from the Government or other sources made with the approval of the Minister ; monies accruing to the Authority by way of revenue; licence fees and charges payable by licensees under this Act; annual compliance fee; and any other monies, including fines imposed by the Authority for contravention or non-compliance with this Act. Every licensee shall pay to the Authority an annual contribution of a sum determined by the Authority , by regulations, after consulting with the Uganda Insurers Association, the Uganda Association of Insurance Brokers, the Uganda Association of Engineers, Valuers and Loss Assessors, Insurance Agents Association and HMOs. All monies under sub section (1)(d), (e) and (f) received by the Authority shall be retained by the Authority and used in accordance with the provisions of section 29(3) of the Public Finance Management Act. - 26 Verify source ↗
Financial provisions - Duty to operate on sound financial principles
AI-assisted research summary: The Board must have due regard to sound financial principles.
Section Duty to operate on sound financial principles Section In the performance of its functions under this Act, the Board shall have due regard to sound financial principles. - 27 Verify source ↗
Financial provisions - Power to open and operate bank accounts
AI-assisted research summary: The Authority may, with the authority of the Accountant General, open and maintain other accounts necessary to perform its functions.
Section Power to open and operate bank accounts Section The Authority may, with the authority of the Accountant General, open and maintain such other accounts as are necessary for the performance of the functions of the Authority - 28 Verify source ↗
Financial provisions - Borrowing powers
AI-assisted research summary: The Board may, with the approval of Parliament and subject to article 159 of the Constitution, borrow money to meet its obligations or to discharge the functions of the Authority under this Act.
Section Borrowing powers Section Subject to article 159 of the Constitution, the Board may, with the approval of Parliament, borrow money as may be required for meeting its obligations or for the discharge of the functions of the Authority under this Act. - 29 Verify source ↗
Financial provisions - Estimates of income and expenditure
AI-assisted research summary: The Chief Executive Officer must prepare and submit the Authority's next financial year's income and expenditure estimates to the Board within three months before the end of each financial year; the Board must submit those approved estimates to the Minister within two months of receipt.
Section Estimates of income and expenditure Section The Chief Executive Officer shall, within three months before the end of each financial year, cause to be prepared and submitted to the Board for its approval, estimates of the income and expenditure of the Authority for the next financial year. The Board shall, within two months of receipt of the estimates referred to in subsection (1), cause to be submitted to the Minister for his or her approval, the estimates of income and expenditure as approved by the Board . - 30 Verify source ↗
Financial provisions - Financial year of Authority
AI-assisted research summary: The Authority's financial year must be the same as the Government's financial year.
Section Financial year of Authority Section The financial year of the Authority shall be same as the financial year of Government. - 31 Verify source ↗
Financial provisions - Accounts and audit
AI-assisted research summary: The Authority must keep proper accounting records; the Auditor General (or an auditor appointed by them) must audit the Authority's accounts each financial year; the Auditor General must submit the audited accounts to Parliament per the Public Finance Management Act, 2015.
Section Accounts and audit Section The Authority shall keep proper books of accounts and all records relating to the transactions and affairs of the Authority . The Auditor General or an auditor appointed by the Auditor General shall, in each financial year, audit the accounts of the Authority . The Auditor General shall submit the audited accounts of the Authority to Parliament in accordance with the Public Finance Management Act, 2015. - 32 Verify source ↗
Financial provisions - Publication of accounts by the Authority
AI-assisted research summary: The Authority must publish its audited financial statements at least annually in a Uganda newspaper with wide circulation.
Section Publication of accounts by the Authority Section The Authority shall publish its audited financial statements at least annually in a Uganda newspaper with wide circulation.
Part IX
Special provisions on insurance intermediaries and bancassurance
- 82 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Prohibition on unlicensed insurance intermediary business
AI-assisted research summary: Persons must not carry on or purport to carry on business as insurance intermediaries in Uganda unless they hold a valid licence from the Authority; foreign intermediaries face additional controls and fines.
Section Prohibition on unlicensed insurance intermediary business Section Without limiting the application of subsection (1)— Subsection (1) does not apply to— Subject to subsection (3), a person shall not carry on, or purport to carry on, business as an insurance intermediary unless the person holds a valid insurance intermediary licence issued by the Authority . a person is considered to carry on business as an insurance intermediary if, by way of business, the person offers to act as an insurance intermediary for a person in Uganda directly or indirectly; a person purports to carry on business as an insurance intermediary if that person uses any name, style, designation, description, title or trademark that represents or implies that the person is an insurance intermediary . a foreign reinsurance broker that acts for, or in relation to, contracts involving a reinsurer ; or a person authorised to carry out bancassurance under this Act who acts as the insurance agent of an insurer. The Authority may, by regulations, grant an exemption to a person incorporated outside Uganda to provide any insurance intermediary services where the Authority is satisfied that those services cannot be obtained in Uganda or cannot be obtained on equivalent terms. A foreign insurance intermediary shall not occupy or operate an office in Uganda without the prior written approval of the Authority . A person who carries on or purports to carry on business as an insurance intermediary contrary to subsection (1) is liable to a fine not exceeding two thousand currency points. A foreign insurance intermediary that contravenes this section is liable to a fine not exceeding ten thousand currency points. - 83 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Insurance intermediary licences
AI-assisted research summary: The Authority may issue licences for various categories of insurance intermediaries; certain licence-holders are authorised to assess and advise on insurable risks without needing a separate risk advisor licence; and a person must not use intermediary category names unless licensed.
Section Insurance intermediary licences Section A licence to carry on business as an insurance intermediary may be issued by the Authority in one of the following categories— an insurance brokers licence , which authorises the holder to carry on business as an insurance broker ; a reinsurance brokers licence , which authorises the holder to carry on business as a reinsurance broker; an insurance agents licence , which authorises the holder to act as an insurance agent ; a micro insurance agents licence , which authorises the holder to act as an insurance agent in respect of micro insurance contracts only; an insurance risk advisors licence , which authorises the holder to carry on business as an insurance risk advisor ; a loss assessors licence , which authorises the holder to carry on business as a loss assessor ; a loss adjustors licence , which authorizes the holder to carry on the business of loss adjustor. For the avoidance of doubt, an insurance brokers licence and a reinsurance brokers licence authorises the holder to assess and advise on insurable risks, without the need to obtain an insurance risk advisors licence . A person shall not use the name of insurance broker or agent, risk manager, loss assessor or adjuster, insurance surveyor or claims settling agent or any other name of a category of insurance intermediary unless he or she is licensed to carry on that business. - 84 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Insurance or reinsurance brokers to be bodies corporate
AI-assisted research summary: Only companies incorporated under the Companies Act, 2012 may operate as insurance or reinsurance brokers; all other persons are prohibited from doing so.
Section Insurance or reinsurance brokers to be bodies corporate Section No person other than a company incorporated under the Companies Act, 2012 shall carry on business as an insurance or reinsurance broker. - 85 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Application and qualifications for insurance intermediary licence
AI-assisted research summary: Applications must be in a form prescribed by the Authority; the Authority prescribes qualifications; the Authority must not grant or renew a licence if the applicant is not a fit and proper person; licences are issued for two years and may be renewed for two years; every insurance intermediary must maintain risk management and compliance functions.
Section Application and qualifications for insurance intermediary licence Section Where the Authority is satisfied that— An application for an insurance intermediary licence or renewal of a licence shall be in a form prescribed by the Authority . The qualifications for obtaining an intermediary licence shall be prescribed by the Authority . The Authority shall not grant a licence or renew an insurance intermediary 's licence if the applicant is not a fit and proper person within the meaning of Schedule 2 to the Act. the financial standing of the applicant is sound; the knowledge, skill and experience of the principal officer are adequate; in the case of a broker, the professional indemnity policy of insurance is satisfactory; the applicant is not disqualified under this Act; the applicant is and is likely to continue to be able to comply with the provisions of this Act and the regulations and directions made or issued under this Act as are applicable to the applicant; the prescribed fee has been paid, A licence shall be issued for two years and may be renewed for two years on each renewal. Every insurance intermediary shall establish and maintain a risk management function and a compliance function. - 86 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Processing and granting of a licence
AI-assisted research summary: Sections 41, 42, 43, 44 and 45 shall, with the necessary modifications, apply to insurance intermediaries.
Section Processing and granting of a licence Section Sections 41 , 42 , 43 , 44 and 45 shall, with the necessary modifications, apply to insurance intermediaries. - 87 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Restrictions applicable to insurance intermediaries
AI-assisted research summary: Sets who cannot be insurance agents and restricts certain activities: agents may not act for multiple insurers in the same class without Authority approval, may not act as reinsurer agents or carry out broker/risk advisor/loss assessor activities; brokers may not act as loss assessors; persons with insurer interests are restricted from being substantial shareholders of intermediaries unless the Authority permits in writing. An agent may act for one life and one non-life insurer.
Section Restrictions applicable to insurance intermediaries Section The following persons do not qualify to be insurance agents— public officers or employees of local governments; administrators, managers, directors, auditors or employees of insurers or reinsurers, or insurance brokers or reinsurance brokers, risk advisors or loss assessors; or a person who is not fit and proper. An insurance agent shall not act for two or more insurers transacting the same class of insurance business without the written approval of the Authority . An insurance agent shall not act as agent for a reinsurer or undertake any activity that constitutes the business of an insurance broker , a risk advisor or a loss assessor . For avoidance of doubt, an insurance agent may act for one insurer transacting life business and one insurer transacting non-life business but not for two or more insurers transacting the same class of business. An insurance broker and a reinsurance broker shall not undertake any activity that constitutes the business of a loss assessor . A person holding any interest in an insurer shall not be a substantial shareholder of an insurance intermediary unless permitted by the Authority in writing. - 88 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Application of sections 58, 59 and 60
AI-assisted research summary: Sections 58, 59 and 60 apply, with necessary modifications, to an insurance intermediary that is not a natural person.
Section Application of sections 58, 59 and 60 Section Sections 58 , 59 and 60 shall, with the necessary modifications, apply to an insurance intermediary which is not a natural person. - 89 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Paid-up capital and professional indemnity for insurance broker or reinsurance brokers
AI-assisted research summary: Insurance brokers/reinsurance brokers must maintain paid-up capital as per regulations and furnish proof of the Authority’s lien; deposits must be invested in specified securities; insurance intermediaries (except agents) must hold a professional indemnity policy of at least 100,000,000 shillings.
Section Paid-up capital and professional indemnity for insurance broker or reinsurance brokers Section Every insurance broker or reinsurance broker shall not carry on the business of insurance broking unless it maintains at all times while carrying on that business, a paid-up capital as stipulated in the regulations and shall furnish the Authority with proof of registration of the Authority ’s lien on the deposit. The deposits made under subsection (1) shall be considered part of the assets in respect of the capital of the insurance broker or reinsurance broker. The deposits made under subsection (1) shall be invested by the insurance broker or reinsurance broker in Government securities or in any other investments as may be approved by Authority , and on which the Authority shall have a lien. The security deposits made under subsection (1) shall be available to the insurance broker or reinsurance broker in accordance with section 39 with the necessary modifications. Any income that may accrue from the security deposit shall be payable to the insurance broking company that makes the security deposit. Every insurance intermediary , except an insurance agent , shall not carry on the business unless the insurance intermediary maintains at all limes while carrying on that business a professional indemnity policy of not less than the equivalent of one hundred million shillings. The paid-up capital, the security deposit or the professional indemnity policy provided under this section may, by regulations, be amended. - 90 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Premiums and other monies to be paid to insurer or HMOs directly
AI-assisted research summary: Insurance brokers and agents must ensure payments for insurers or HMOs are made payable to the insurer/HMO, must not divert or treat cash premiums as their assets, must remit cash premiums to the insurer immediately or by the next working day, follow insurer instructions for handling premiums, and face liabilities and fines for non-compliance.
Section Premiums and other monies to be paid to insurer or HMOs directly Section An insurance broker or insurance agent shall not accept a cheque or other payable order from a policy holder or prospective policy holder in respect of premiums or other monies, paid for or on account of an insurer or HMO in connection with an insurance contract or a proposed insurance contract unless the cheque or payable order is made payable to the insurer or HMO. An insurance broker or insurance agent shall not request or authorise the electronic transfer of monies into any of its accounts, including a client account, if those monies are paid for or on account of an insurer in connection with an insurance contract or a proposed insurance contract . An insurance broker or an insurance agent who receives any premiums whether in full or installments or other monies in cash, shall immediately but not later than the next working day from the date of receipt, without any deductions of commissions or otherwise remit the premiums or money in cash to the insurer. Any cash premiums or other monies received by an insurance broker or insurance agent shall not be treated, for any purposes as assets or property of the insurance broker or insurance agent . The insurance broker or insurance agent who does not immediately remit the premium or other monies shall be liable to pay the premium or other monies due and interest on the premium or other monies to the insurer and a penalty to the Authority at rates determined by the Authority . An insurance agent or insurance broker shall deal with any premiums or other monies received under this section in accordance with instructions of the insurer. An insurance broker or agent who contravenes this section is liable to fine of not less than five hundred currency points. - 91 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Loans to agents
AI-assisted research summary: An insurance agent must not, without prior approval of the Authority, at any time have an outstanding loan to an insurer that exceeds an aggregate of one hundred currency points.
Section Loans to agents Section An insurance agent shall not, without the prior approval of the Authority , have at any time, a loan outstanding to an insurer, which is in the excess of an aggregate of one hundred currency points. - 92 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Portfolio transfer
AI-assisted research summary: Insurers' intermediaries may transfer their portfolios to another intermediary only with prior approval from the Authority; the Authority will refuse approval unless the transferor has settled all insurers and provided required information. Approved transfers require that the parties inform policyholders and insurers; unapproved transfers expose the transferee/seller to licence suspension or revocation and a five-year bar on re-licensing in case of revocation.
Section Portfolio transfer Section An insurance intermediary may transfer his or her portfolio to another intermediary, provided that prior approval is obtained from the Authority . The Authority shall not approve a transfer unless it is satisfied that the transferor has settled all financial obligations with all insurers with which there are dealings, prior to the transfer and has provided the Authority all the information the Authority may require. A portfolio shall be transferred in its entirety unless the Authority directs otherwise. Where a transfer is approved, the parties to the transfer shall inform all the policyholders and the insurers with which they place business of the transaction. Where a transfer or sale is effected without the approval of the Authority , the Authority may suspend or revoke the licence of a transferee or seller of a portfolio, and that person shall be prohibited from obtaining another licence for five years from the date of sale or transfer in case of revocation. - 93 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Direct relationship with an insurer
AI-assisted research summary: Appointing an insurance agent does not stop the appointing person or a beneficiary from communicating directly with the insurer, and the insurer may likewise communicate directly with them.
Section Direct relationship with an insurer Section The appointment of an insurance agent by a person does not preclude that person or a beneficiary under the policy from having direct communication with the insurer or vice versa. - 94 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Loss adjustors and loss assessors
AI-assisted research summary: Loss adjustors and loss assessors must not receive or handle premiums or other monies payable to an insurer or policyholder under (prospective) insurance contracts; contravention attracts a fine not exceeding five hundred currency points.
Section Loss adjustors and loss assessors Section A loss adjustor or loss assessor shall not accept the receipt of and shall not handle any monies representing premiums or any other monies payable to an insurer or to a policyholder under an insurance contract or prospective insurance contract . A loss adjustor or loss assessor that contravenes this section is liable to a fine not exceeding five hundred currency points. - 95 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Variation, revocation or suspension of an intermediary’s licence
AI-assisted research summary: The Authority may impose fines or vary, suspend or revoke an intermediary’s licence; the Authority must give written notice and an opportunity to be heard before doing so, must give a written warning in some cases, and must advertise revocations; aggrieved persons may appeal to the Tribunal within thirty days; in urgent cases the Authority may act without notice.
Section Variation, revocation or suspension of an intermediary’s licence Section The Authority — The Authority may impose fines, vary, suspend a licence or revoke a licence of any intermediary, depending on the gravity of the offence where— may vary, revoke or suspend a licence of an intermediary on any ground on which it could have refused to grant the licence ; shall vary, suspend or revoke the licence of an intermediary that fails to satisfy the paid-up capital and security deposit requirements. there is breach of professional etiquette; discounts are given which are not provided for under the authorised premium rates; the whole or part of the intermediary's commission is offered to an insured; terms and conditions are offered which are not included in the policies and endorsements; quotations are given in the intermediary’s own name without the authority of the insurers; monies received in payment of a premium are used for an intermediary’s own benefit or the benefit of third parties, or have not been paid to the insurer in accordance with this Act; the intermediary ceases to carry on business; the prescribed fees payable to the Authority remain unpaid; the intermediary is adjudged to be bankrupt by a court of competent jurisdiction. Before varying, revoking or suspending any licence , the Authority shall give notice in writing to the person concerned stating the reasons for the proposed variation, revocation or suspension and shall afford the person an opportunity to be heard. Before invoking the provisions of subsection (2), the Authority shall give written warning for a period to be specified by regulations made under this Act. A person aggrieved by any decision made under this section, may within thirty days from the receipt of the communication of the decision from the Authority , appeal to the Tribunal . Where in the interest of the policyholders circumstances warrant immediate action, the Authority may vary, revoke or suspend a licence without giving any notice to the person concerned. Notice of the revocation of the licence shall be advertised by the Authority in the Gazette and an English language daily newspaper widely read by people where the affected intermediary has an office. - 96 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Prohibition on unauthorised bancassurance
AI-assisted research summary: A financial institution must not carry on bancassurance unless it holds a bancassurance authorisation issued under this Act.
Section Prohibition on unauthorised bancassurance Section A financial institution shall not carry on bancassurance without bancassurance authorisation issued under this Act. A financial institution that carries on bancassurance contrary to subsection (1), is liable to a default fine not exceeding ten thousand currency points. - 97 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Application for bancassurance authorisation
AI-assisted research summary: A financial institution's application (including renewals) for bancassurance authorisation must be in the form prescribed by the Authority.
Section Application for bancassurance authorisation Section An application by a financial institution for bancassurance authorisation or renewal of bancassurance authorisation shall be in a form prescribed by the Authority . - 98 Verify source ↗
Special provisions on insurance intermediaries and bancassurance - Revocation of authorisation to undertake bancassurance
AI-assisted research summary: The Authority must revoke a bancassurance authorisation in specified circumstances, must give notice and reasons in some cases, and may revoke without notice where policyholders' interests are at risk.
Section Revocation of authorisation to undertake bancassurance Section Subject to subsection (2), the Authority — shall revoke an authorisation to undertake bancassurance if— shall revoke an authorisation to undertake bancassurance if the financial institution — the financial institution ceases to hold a licence under the Financial Institutions Act, 2004; or the central bank requests the Authority to revoke the authorisation; and has applied to the Authority in writing for the revocation of its authorisation; or contravenes, or has contravened, the conduct of business requirements applicable to it in this Act or any regulations made under this Act. The Authority shall, before revoking an authorisation under subsection (1)(b)(ii), give the financial institution written notice of its intention to revoke the licence , stating the grounds upon which it intends to revoke the authorisation. The Authority may, in exceptional circumstances where it considers the interests of the policyholders to be at risk, revoke the authorisation without notice. The Authority shall provide written reasons for the revocation of an authorisation under this section.
Part V
Licensing of insurers, HMOs and micro insurance organisations
- 33 Verify source ↗
Licensing of insurers, HMOs and micro insurance organisations - Application of this Part
AI-assisted research summary: This Part applies to insurers, HMOs and micro insurance organisations unless otherwise stated; the Authority may modify provisions to better suit micro insurance organisations given their nature and circumstances.
Section Application of this Part Section This Part applies to insurers, HMOs and micro insurance organisations unless otherwise stated. The Authority may, due to the nature of micro insurance organisations and the circumstances, modify the provisions of this Part to better apply to micro insurance organisations. - 34 Verify source ↗
Licensing of insurers, HMOs and micro insurance organisations - Licensing required to conduct insurance business
AI-assisted research summary: Carrying on insurance, reinsurance or HMO business in Uganda requires a valid licence; foreign insurers may not operate an office without prior written approval of the Authority; Authority may in exceptional circumstances authorize effecting insurance with a foreign insurer.
Section Licensing required to conduct insurance business Section Subsection (1) does not apply to— Subject to subsection (4), a person shall not carry on, or purport to carry on, insurance business , reinsurance business or the business of a HMO in Uganda without a valid licence issued by the Authority . A foreign insurer shall not occupy or operate an office in Uganda without the prior written approval of the Authority Notwithstanding subsections (1) and (2), the Authority may authorize the effecting of insurance with a foreign insurer in exceptional circumstances. a foreign reinsurer that enters into a reinsurance contract with a licensed insurer or a retrocession agreement with a licensed reinsurer ; or a foreign insurer that carries on insurance business in accordance with an exemption granted by the Authority . A person shall not be granted a licence unless the person satisfies conditions for the grant of a licence prescribed by this Act. A person who carries on, or purports to carry on, insurance business , reinsurance business or business as a HMO in contravention of this Act is liable to a fine not exceeding one thousand currency points. A foreign insurer that contravenes subsection (2) commits an offence and is liable, on conviction, to a fine not exceeding five thousand currency points. - 35 Verify source ↗
Licensing of insurers, HMOs and micro insurance organisations - Categories of insurance business licences
AI-assisted research summary: The Authority may issue specified types of insurance business licences (insurer, reinsurer, HMO, micro‑insurance); the Minister may prescribe other licence categories on the Authority's recommendation by statutory instrument.
Section Categories of insurance business licences Section The Authority may issue the following insurance business licences under this Act— an insurer’s licence which authorises the holder to carry on direct insurance business or reinsurance business with other licensed insurers; a reinsurer 's licence which authorises the holder to carry on reinsurance business ; a HMO licence which authorises the holder to provide health benefit plans to persons resident in Uganda only; and a micro insurance licence which authorises the holder to carry on micro insurance business only. The Minister may, on the recommendation of the Authority , by statutory instrument, prescribe other categories of insurance business licences. - 36 Verify source ↗
Licensing of insurers, HMOs and micro insurance organisations - Licensing of health membership organisations
AI-assisted research summary: Persons proposing to carry on business as health membership organisations must apply to the Authority in a prescribed form for a licence; the Authority must consider the application.
Section Licensing of health membership organisations Section A person proposing to carry on business as a health membership organisation shall apply to the Authority , in a prescribed form, for a licence , which application shall be considered by the Authority . Licensed health membership organisations shall be regulated in accordance with regulations made under this Act, in consultation with the Minister responsible for health and other stakeholders. - 37 Verify source ↗
Licensing of insurers, HMOs and micro insurance organisations - Minimum capital requirements
AI-assisted research summary: Licensed insurers and HMOs must maintain paid-up capital at least at the level prescribed in regulations; HMOs and micro insurance organisations must have paid-up capital as prescribed by the Minister; the section does not apply to mutual insurers.
Section Minimum capital requirements Section A licensed insurer and a HMO shall have and maintain paid-up capital of not less than the amount prescribed in regulations. Every share in an insurer or HMO shall be fully paid for in cash unless the Authority otherwise approves in writing. Notwithstanding subsection (1), a HMO, a micro insurance organisation shall have a paid up capital as may be prescribed by the Minister , by regulations. This section does not apply to a mutual insurer . - 38 Verify source ↗
Licensing of insurers, HMOs and micro insurance organisations - Security deposit
AI-assisted research summary: Every insurer must hold an account with an Authority-approved commercial bank containing a security deposit equal to ten percent of its paid-up capital; deposits must be invested in Government securities or Authority-approved investments; income from the deposit is payable to the insurer; mutual insurers are not covered.
Section Security deposit Section Every insurer shall hold an account maintained by the insurer with a commercial bank approved by the Authority of a sum equal to ten percent of the paid-up capital of the insurer. The security deposit made under this section shall be considered part of the assets in respect of the capital of the insurer. The deposits made under subsection (1) shall be invested by the insurer in Government securities or any other investment as may be approved by the Authority . All income accruing from a security deposit made under this section shall be payable to the insurer making the deposit. This section does not apply to a mutual insurer . - 39 Verify source ↗
Licensing of insurers, HMOs and micro insurance organisations - Use of the security deposit
AI-assisted research summary: Insurers or HMOs holding a security deposit must apply it to pay claims, satisfy enforcement or winding-up costs, and (if liquidated) pay the liquidator; they must follow the Authority's written directions and may not release the deposit or interest except with the Authority's written permission. An insurer that ceases business may apply to the Authority for withdrawal and the Authority may authorise release if satisfied the business is wound up with no outstanding liabilities.
Section Use of the security deposit Section The security deposit of an insurer or HMO shall be applied in the following priority— An insurer or HMO that holds a security deposit— to pay insurance claims; to satisfy the costs of, or associated with any remedial measures or enforcement powers exercised by the Authority in relation to the insurer, or the running-off and winding up of the business of the insurer or the liquidation of the insurer; in the event that the insurer is liquidated, to pay to the liquidator of the insurer for the purposes of the winding up. to make a payment or transfer to the insurer in accordance with this Act; shall deal with the funds deposited in accordance with the written directions of the Authority ; and shall not release the security deposit and the interest accrued from the deposit, except with the written permission of the Authority . Where an insurer ceases to carry on insurance business , it may apply to the Authority for approval for the withdrawal of the security deposit and the Authority may authorise the release of the deposit if it is satisfied that the insurance business has been fully wound up and the insurer has no outstanding liabilities under any insurance contracts. - 40 Verify source ↗
Licensing of insurers, HMOs and micro insurance organisations - Capital requirements of mutual insurers
AI-assisted research summary: The capital requirements of a mutual insurance company shall be prescribed in regulations made under this Act.
Section Capital requirements of mutual insurers Section The capital requirements of a mutual insurance company shall be prescribed in regulations made under this Act. - 41 Verify source ↗
Licensing of insurers, HMOs and micro insurance organisations - Application for a licence
AI-assisted research summary: A person proposing to carry on insurance business must apply to the Authority in a prescribed form for a licence; the applicant may be called on to supply missing information or clarification.
Section Application for a licence Section A person proposing to carry on insurance business shall apply to the Authority , in a prescribed form, for a licence , which application shall be considered by the Authority . Where an application under subsection (1) does not provide all the relevant information or if clarification is necessary, the applicant may be called upon to provide the information or clarification to complete the application. - 42 Verify source ↗
Licensing of insurers, HMOs and micro insurance organisations - Factors to be considered in an application
AI-assisted research summary: The Authority must, when considering a licence application, satisfy itself about specified matters including the applicant's financial status, management competence and integrity, capital adequacy, business and financial plans, reinsurance, public interest, governance, and related arrangements.
Section Factors to be considered in an application Section The Authority shall, when considering an application for a licence , satisfy itself as to— the financial status and antecedents of the applicant; the competence and integrity of the proposed management and administration; the adequacy of the applicant’s capital structure, earning prospects, business plans, financial plans, reinsurance and retention proposals; whether the public interest would be served by granting a licence ; the governance framework of the applicant; proposed reinsurance and retrocession arrangements; such other matters as the Authority may consider appropriate. - 43 Verify source ↗
Licensing of insurers, HMOs and micro insurance organisations - Processing of applications
AI-assisted research summary: The Authority must, within four months of receiving a complete application, investigate and prepare a detailed report for each application, and must appoint a committee of at least three members which must report its recommendations in writing.
Section Processing of applications Section The Authority shall, within four months after receipt of a complete application, investigate and prepare a detailed report in respect of each application. The Authority shall, for the purpose of considering and making a report on an application under subsection (1), appoint a committee of not less than three members of the Authority which committee shall report its recommendations to the Authority in writing. - 44 Verify source ↗
Licensing of insurers, HMOs and micro insurance organisations - Granting of a licence
AI-assisted research summary: The Authority may grant or refuse an insurance licence (subject to satisfaction of requirements and payment of the prescribed fee); it must communicate its decision within sixty days. Applicants may appeal to the Tribunal within thirty days, and the Tribunal must decide within thirty days.
Section Granting of a licence Section The Authority may— if it is satisfied that the applicant complies with the provisions of this Act, grant a licence to the applicant, on the payment of the prescribed fee; refuse to grant a licence and give reasons in writing for its decision. An insurance licence issued under subsection (1) remains in force until suspended, varied or revoked. The Authority shall communicate its decision under subsection (1) to the applicant within sixty days from receipt of a complete application. The applicant may appeal to the Tribunal within thirty days from the receipt of the communication of the Authority , if aggrieved by the decision of the Authority and the Tribunal shall make a decision within thirty days from the date of the appeal. - 45 Verify source ↗
Licensing of insurers, HMOs and micro insurance organisations - Variation, suspension and revocation of a licence
AI-assisted research summary: The Authority may vary, suspend or revoke an insurer’s or HMO’s licence for specified grounds and must give notice, reasons and opportunities to remedy or appeal, and must publish such actions.
Section Variation, suspension and revocation of a licence Section The Authority may at any time vary, suspend or revoke the licence of an insurer or HMO to carryout business under this Act where— An insurer shall not take on any new insurance business or renew any existing policy— it is in the public interest or it is required for protecting policy holders’ interests; the business of the insurer is not being conducted in accordance with sound insurance principles and practices; the relevant minimum prescribed paid up capital or security deposit requirements have not been complied with by the insurer; the insurer is not in compliance with the capital adequacy requirements prescribed in regulations; the insurer has not commenced insurance business within one hundred and eighty days of obtaining a licence to operate; the insurer has made a false statement to the Authority which statement is material to his or her licensing and which he or she knows or might have known to be false; a judgment arising out of any insurance liability obtained in any court in Uganda against an insurer remains unsatisfied without good reason for more than ninety days from the date of final judgment; the insurer has ceased to qualify as an insurer under this Act; the insurer repeatedly acts in an illegal way or ignores the requirements of the Authority ; the insurer has refused or failed to abide by the decision of the Authority , to settle a claim or complaint in accordance with this Act. The Authority shall, before the variation, suspension or revocation of any licence , give written notice to the insurer requiring the insurer to remedy any breach, and where the breach cannot be remedied, to show cause to the satisfaction of the Authority why the licence should not be suspended or revoked. Where the licence is varied, suspended or revoked, the Authority shall give notice to the insurer in a prescribed form. The Authority shall give reasons for its decision under subsection (1). An insurer may within thirty days from the receipt of the communication of the Authority of the variation, suspension or revocation of his or her licence , appeal to the Tribunal Except for purposes of winding up its business no insurer, whose licence has been revoked shall carry on insurance business in Uganda. where there is an appeal against a revocation of a licence , until the appeal is decided in favour of the insurer; or in case of suspension of a licence , until the suspension is over. The Authority shall publish in the Gazette and a newspaper widely read by the people in the area where the registered office of the affected insurer is located, any variation, revocation or suspension of the licence of the insurer or any reinstatement or relicensing of the affected insurer as soon as is practicable. The provisions of this Act continue to apply to an insurer, despite the suspension or revocation of its licence . - 46 Verify source ↗
Licensing of insurers, HMOs and micro insurance organisations - Provisions relating to licences
AI-assisted research summary: The Authority must not issue an insurer’s licence that permits the same holder to carry on both life and non-life insurance business (subject to subsection (4)).
Section Provisions relating to licences Section Subject to subsection (4), the Authority shall not issue an insurer’s licence that authorises the holder to carry on both life insurance and non-life insurance business . A reinsurer 's licence shall not be granted to a mutual insurer . A micro insurance organisation licence may authorise the holder to carry on both life insurance and non-life insurance business . A licence may be issued subject to such conditions as the Authority considers appropriate.
Part VI
Prudential regulation of insurers, HMOs and micro insurance organisations
- 47 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Application
AI-assisted research summary: This Part applies to insurers, HMOs and micro insurance organisations; the Authority may modify these provisions for micro insurance organisations because of their nature and circumstances.
Section Application Section This Part applies to insurers, HMOs and micro insurance organisations unless otherwise stated. The Authority may, due to the nature of micro insurance organisations and the circumstances, modify the provisions of this Part to better apply to such organisations. - 48 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Capital adequacy and other prudential requirements
AI-assisted research summary: Insurers must maintain adequate capital and controls; the Authority must set capital adequacy and prudential requirements by regulation.
Section Capital adequacy and other prudential requirements Section Every insurer shall maintain- its capital resources at a level adequate to support its insurance business , taking into account the nature, scale and complexity of that business and its risk profile; adequate procedures and controls to monitor and assess its capital resources and capital on an ongoing basis. For the purposes of this section, capital resources has the meaning specified in the regulations made under sub section (3). The Authority shall, by regulations, determine the capital adequacy and other prudential requirements for insurers. - 49 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Technical provisions
AI-assisted research summary: An insurer and a HMO must establish and maintain the technical provisions as prescribed in regulations made by the Authority under section 48 (3).
Section Technical provisions Section An insurer and a HMO shall establish and maintain the technical provisions prescribed in regulations made by the Authority under section 48 (3). - 50 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Investments
AI-assisted research summary: Insurers and HMOs must comply with investment requirements specified in regulations made by the Authority.
Section Investments Section An insurer or a HMO shall comply with such requirements concerning investments as are specified in regulations made by the Authority . - 51 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Maintenance of financial soundness
AI-assisted research summary: Every insurer, HMO and micro insurance organisation must at all times keep its business financially sound, maintain adequate capital for its licensed business taking into account its risk profile, and conduct business according to sound insurance principles.
Section Maintenance of financial soundness Section Every insurer, HMO and micro insurance organisation shall, at all times- maintain its business in a financially sound condition so as to meet its liabilities; maintain its capital resources at a level adequate to support its licensed business, taking into account the nature, scale and complexity of that business and its risk profile; and conduct its licensed business in accordance with sound insurance principles - 52 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - No reduction in share capital of insurer or HMO
AI-assisted research summary: An insurer or HMO must not reduce (or cause or permit reduction of) its paid-up share capital without the Authority's prior written consent.
Section No reduction in share capital of insurer or HMO Section An insurer or HMO shall not reduce its paid up share capital, or cause or permit its paid-up share capital to be reduced, without the prior written consent of the Authority and any resolution passed in contravention of this section is void and of no effect. - 53 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Segregated funds
AI-assisted research summary: A life insurer must establish and maintain segregated funds as required by the regulations.
Section Segregated funds Section A life insurer shall establish and maintain segregated funds as required by the regulations. For the purposes of subsection (1), “segregated fund” has the meaning specified in regulations made under subsection (1). An insurer that contravenes subsection (1) is liable to a fine not exceeding one thousand currency points. - 54 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Restrictions on loans to officers and directors
AI-assisted research summary: Insurers and HMOs may not offer loans to their officers or directors without the Authority's prior written approval, subject to two specified exceptions; aggregate loans to any officer or director must not exceed 10% of paid up capital; breach is an offence with a fine equal to double the loan amount.
Section Restrictions on loans to officers and directors Section An insurer or HMO shall not, without the prior written approval of the Authority , offer a loan to an officer or director of the insurer except- a loan on a life policy limited to the policy's surrender value, where the right to borrow the same amount is also provided to the policy holders of that class; or a loan forming part of the terms and conditions of service of that officer or director , repayable within three years. Notwithstanding subsection (1), the total aggregate of the loans offer to an officer or director of an insurer or HMO shall not exceed ten percent of the paid up capital of the insurer or HMO. An insurer or HMO that offers a loan to an officer or director contrary to subsection (1) or (2) commits an offence and is liable to a fine double the amount of the loan given. This section does not apply to a distribution permitted under this Act. - 55 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Prohibition of loans to associate companies
AI-assisted research summary: Insurers, reinsurers, insurance brokers and reinsurance brokers must not grant loans to companies in which their directors, officers or employees have an interest, except as permitted by the Regulations.
Section Prohibition of loans to associate companies Section An insurer, a reinsurer , an insurance broker or a reinsurance broker shall not grant a loan, directly or indirectly, to a company in which the directors or officers and employees of that insurer, reinsurer , insurance broker or reinsurance broker except as permitted by the Regulations. - 56 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Other prohibitions applicable to insurers and HMOs
AI-assisted research summary: Insurers and HMOs are prohibited from certain transactions (including acquiring or dealing in their own shares, lending against their own shares, granting credit on premiums, granting unsecured credit, and providing guarantees or securities for related-party loans) unless regulations or prior written approval from the Authority allow it; distributions permitted under the Act are excluded.
Section Other prohibitions applicable to insurers and HMOs Section An insurer or HMO shall not, except in accordance with regulations made under this Act or the prior written approval of the Authority - acquire or deal in its own shares or lend money or make advances on the security of its own shares; grant credit on premiums; grant unsecured credit to any person; enter into a guarantee or provide a security in connection with a loan by another person to a related party. This section does not apply to a distribution permitted under this Act. - 57 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Distributions
AI-assisted research summary: Insurers and HMOs must not make distributions to shareholders unless, immediately after the distribution, they meet the capital adequacy requirements prescribed by the Authority and all other applicable prudential requirements.
Section Distributions Section A “ distribution ”, in relation to a distribution by an insurer or HMO to a member, means- An insurer or a HMO shall not make a distribution to any of its shareholders unless, immediately after the distribution , the insurer or HMO complies with the capital adequacy requirements prescribed by the Authority in the regulations made under section 48 (3) and all other prudential requirements applicable to the insurer or HMO. the direct or indirect transfer of an asset, other than its own shares, to or for the benefit of the shareholder; or the incurring of a debt to or for the benefit of a shareholder in relation to shares held by the shareholder and whether by means of the purchase of an asset, the purchase, redemption or other acquisition of shares, a transfer of indebtedness or otherwise, and includes a dividend. An insurer or HMO that contravenes subsection (1) shall recover, from its shareholders the dividends paid to them and be liable to a fine not exceeding one thousand currency points. - 58 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Governance framework
AI-assisted research summary: Every insurer and HMO must establish and maintain an appropriate governance and management framework, set strategies, policies, procedures and controls suited to their business and risk profile (regularly reviewed), and routinely review suitability of board members, senior management, key control persons and significant owners.
Section Governance framework Section The governance and management framework shall provide for- Every insurer and HMO shall establish and maintain an appropriate governance and management framework. Every insurer and HMO shall establish and maintain such strategies, policies, procedures and controls appropriate for the nature, scale and complexity of its business and its risk profile and ensure that they are regularly reviewed and updated. the apportionment of roles between shareholders, directors, senior management and key persons in control functions; the separation of the oversight function from management responsibilities; and the adequate monitoring of and control of the business and affairs of the insurer or HMO by the directors and senior management. The insurer or HMO shall routinely review the suitability of the board members, senior management, key persons in control functions and significant owners. - 59 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Board of directors of insurer or HMO
AI-assisted research summary: Board members of an insurer or HMO must be fit and proper, must not simultaneously serve on another insurer/HMO or brokerage board in Uganda without the Authority's prior written approval, must have sufficient time and commitment to perform duties, and every insurer or HMO must ensure its board is adequately resourced, has sufficient powers, and must furnish the Authority with names and addresses of its board, senior executives and technical personnel.
Section Board of directors of insurer or HMO Section A member of the board of directors of an insurer or HMO shall- Every insurer or HMO shall ensure that the board of directors is adequately resourced and that the board of directors has sufficient powers- Every insurer or HMO shall furnish the Authority with the names and addresses of its board of directors, senior executives and technical personnel. be a fit and proper person as prescribed in Schedule 2; not at the same time serve as a member of the board of directors of another insurer or HMO of an insurance brokerage company in Uganda without the prior written approval of the Authority ; and have sufficient time and commitment to undertake his or her duties diligently. to obtain, in a timely manner, such information as the board of directors requires to undertake its functions; and to assess senior management, key persons in control functions and other relevant persons. The board of directors of an insurer or a HMO is responsible for the business and affairs of the insurer or HMO and for ensuring its effective organisation. - 60 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Senior management
AI-assisted research summary: Senior management members of an insurer or HMO must meet Schedule 2 fit and proper criteria; senior management must run day-to-day operations and give the board timely, accurate information with recommendations.
Section Senior management Section Every member of the senior management of an insurer or a HMO shall meet the fit and proper criteria prescribed in Schedule 2. The senior management of an insurer or HMO shall be responsible for the day to day operations of the insurer or HMO and provide the board of directors with timely and accurate information with recommendations for its review and approval. - 61 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Control functions
AI-assisted research summary: Insurers and HMOs must establish and maintain control functions and appoint individuals to specific functions (risk management, compliance, actuarial, internal audit, and others specified or considered appropriate); they must ensure functions have authority, independence and resources and retain overall responsibility if functions are shared or outsourced.
Section Control functions Section Every insurer shall establish and maintain the following control functions- Every HMO shall establish and maintain the following control functions- Every insurer and HMO shall- appoint an individual to- a risk management function; a compliance function; an actuarial function; an internal audit function; such other control functions as may be specified in regulations made under this Act; and such other functions as the insurer may consider appropriate for the nature, scale and complexity of its insurance business . actuarial function; internal audit function. ensure that each control function is provided with the authority, independence and resources required to enable it to operate effectively; and undertake the responsibilities of each control function ; or where the responsibilities of the control function are to be undertaken by more than one employee or to be outsourced, have overall responsibility for, and oversight of, the control function . - 62 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Risk management
AI-assisted research summary: Every insurer or HMO must establish and maintain a risk management strategy and policies that set out how significant risks are identified, monitored, managed and reported, and must include specified content such as appropriateness, consideration of probability/impact/duration and coverage of named risk types.
Section Risk management Section Every insurer or HMO shall establish and maintain- The risk management strategy and policies shall- a clearly defined strategy and policies for the effective management of all significant risks to which the insurer or HMO is or may be exposed; and procedures and controls that are sufficient to ensure that the risk management strategy and policies are effectively implemented. be appropriate for the nature, scale and complexity of the licensed business; specify how risks are to be identified, monitored, managed and reported on in a timely manner; take into account the probability, potential impact and the time duration of risk; provide for the effective identification and management of insurance risk, credit risk, liquidity risk, market risk, operational risk, reputational risk and such other risks as the Authority may, by regulations, determine. - 63 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Payment of premium
AI-assisted research summary: The insured must pay the full premiums under the insurance contract on or before the policy's inception or renewal; the Authority may by regulations allow other methods of premium payment.
Section Payment of premium Section Subject to subsection (2), the insured shall pay in full the premiums payable under the insurance contract on or before the date of inception of the policy or renewal of the policy. The Authority may by regulations provide for the payment of premiums in any other manner. - 64 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Approval of premium and commission rates
AI-assisted research summary: Insurers or HMOs must not issue policies if premium or commission rates contravene regulations; the Authority may set minimum premiums or maximum commissions for classes or types of insurance business (under subsection (2)).
Section Approval of premium and commission rates Section An insurer or HMO shall not issue any policy of insurance if the premium rates and commission rates contravene any regulations made by the Authority under subsection (2). The Authority may prescribe minimum premium or maximum commission rates for any class or type of insurance business . - 65 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Approval of policy format forms and other matters
AI-assisted research summary: Insurers and HMOs may not issue or amend policy or proposal form text/format unless approved by the Authority; if the Authority fails to act within the prescribed period the insurer must treat the text/format or amendment as approved.
Section Approval of policy format forms and other matters Section Subject to subsection (2), an insurer or HMO shall not issue the text or format of the policy or the proposal form unless such have been approved by the Authority as suitable for the purpose of the insurance business it is meant for. Subject to subsection (3), where the Authority approves the text or format of a policy or proposal form under subsection (1), an insurer or HMO shall not make any amendment to the policy or proposal form without the prior written approval of the Authority . Where the Authority does not approve or reject the text or format of a policy or proposal form, or an amendment in the text or format within the prescribed period, the insurer shall treat the text or format of the policy or the proposal form or amendment as approved. - 66 Verify source ↗
Prudential regulation of insurers, HMOs and micro insurance organisations - Alteration of approved premium rates without approval
AI-assisted research summary: If an insurer lowers approved premium rates without the Authority's approval, the Authority may cancel affected policies and require refunds; a pro‑rata refund for the unexpired risk period shall be paid to the insured.
Section Alteration of approved premium rates without approval Section Where an insurer lowers the approved premium rates without the approval of the Authority , the Authority may order the cancellation of the policy issued under the altered premium rates, and a pro-rata refund of the premium in respect of the unexpired period of the risk shall be paid to the insured. Where an insurer lowers the approved premium rates without the approval of the Authority , the Authority may require the company to offer adequate refund to the insured.
Part VII
Reinsurance business
- 67 Verify source ↗
Reinsurance business - Reinsurance arrangements
AI-assisted research summary: Licensed direct insurers, HMOs and micro insurance organisations must not enter into reinsurance contracts as cedant without prior written authorisation from the Authority; the Authority may authorise such contracts on application, and the Regulations may set requirements including prior notice and restrictions involving foreign insurers.
Section Reinsurance arrangements Section A licensed direct insurer, HMO and a Micro insurance organisation shall not, without the prior written authorisation of the Authority under subsection (3), enter into a reinsurance contract , as cedant, other than- The Authority may, on the application of a licensed direct insurer, HMO or a micro insurance organisation , authorise the insurer, HMO or micro insurance organization to enter into a reinsurance contract , as cedant, with- The Regulations may specify requirements in relation to the reinsurance arrangements of licensed direct insurers, HMO and micro insurance organizations and the retrocession arrangements of licensed reinsurers, including by- requiring- A licensed direct insurer, HMO and a micro insurance organisation shall have such arrangements as it considers appropriate for the reinsurance of risks under insurance contracts that it has entered into in the course of its business as an insurer or a micro insurance organisation . with a licensed reinsurer ; with a qualifying foreign reinsurer ; or in accordance with such arrangements, as may be specified in the Regulations. a foreign direct insurer; or a foreign reinsurer that is not a qualifying foreign reinsurer . licensed direct insurers, HMO and micro insurance organisations to provide the Authority with prior written notice of their reinsurance arrangements; licensed reinsurers to provide the Authority with prior written notice of their retrocession arrangements; and the approval of the Authority with respect to certain specified reinsurance or retrocession contracts or arrangements; imposing restrictions on the reinsurance or retrocession of risks with foreign insurers; and specifying requirements in relation to the reinsurance arrangements of licensed direct insurers and micro insurance organisations and the retrocession arrangements of licensed reinsurers. - 68 Verify source ↗
Reinsurance business - Modification or cancellation in insurer’s net retention
AI-assisted research summary: Insurers or HMOs must inform the Authority within five working days of any modification or cancellation in their net retention; the Authority may request explanations and may order adjustments if retentions are not appropriate.
Section Modification or cancellation in insurer’s net retention Section An insurer or HMO shall inform the Authority within five working days of any modification or cancellation in the amount of its net retention in all classes of business which it undertakes. Where the Authority considers the retention submitted under subsection (1) not to be in accordance with the financial standing of the insurer or HMO, it may request an explanation of the technical or other reasons for establishing these retentions; and on the basis of the explanation the Authority may order the adjustment of the net retention. - 69 Verify source ↗
Reinsurance business - Annual reinsurance returns
AI-assisted research summary: Insurers and licensed reinsurance companies must submit annual reinsurance and retrocession return details and details of related reinsurers/retrocessionaires to the Authority in a prescribed form within ninety days after the end of the calendar year.
Section Annual reinsurance returns Section An insurer and a reinsurance company licensed under this Act shall within ninety days from the end of the calendar year submit to the Authority in a prescribed form, details of the reinsurance or retrocession returns and details of the reinsurers or retrocessionaires with whom they maintain business relations in respect of risks falling within the scope of this Act. - 70 Verify source ↗
Reinsurance business - Prohibition of contracts with certain reinsurance companies
AI-assisted research summary: The Authority may (after receiving reliable information that a reinsurance company cannot meet claims, has doubtful integrity, or for any other reasonable cause) act regarding contracts with certain reinsurance companies.
Section Prohibition of contracts with certain reinsurance companies Section The Authority may— after receiving reliable information that a reinsurance company— cannot meet the reinsurance claims; has doubtful integrity in its business dealings; or for any other reasonable cause, - 71 Verify source ↗
Reinsurance business - Modifications where terms of reinsurance document not favourable
AI-assisted research summary: The Authority may, after scrutinising a proposed reinsurance contract, direct an insurer in writing not to enter into or renew the contract unless specified modifications are made, and may direct not to renew if the contract terms are unfavourable or contrary to public or economic interest.
Section Modifications where terms of reinsurance document not favourable Section The Authority , may after the scrutiny of a proposed reinsurance contract , direct an insurer, in writing— not to enter into or renew the contract unless specified modifications are made to the terms and conditions of the contract; not to renew the contract, if the terms and conditions of the contract are not favourable to the insurer or are not in the interest of the economy of Uganda or the insurance industry or are not in the public interest. - 72 Verify source ↗
Reinsurance business - Negotiations not to be in personal capacity
AI-assisted research summary: An insurance agent, director, administrator, employee or shareholder of an insurance company must not negotiate or intervene in placing reinsurance in their personal capacity.
Section Negotiations not to be in personal capacity Section An insurance agent , director , administrator, employee or shareholder of an insurance company shall not negotiate or intervene in the placement of reinsurance in his or her personal capacity. - 73 Verify source ↗
Reinsurance business - Foreign reinsurers’ representatives
AI-assisted research summary: A foreign reinsurer may appoint a licensed reinsurance broker or reinsurer as its representative in Uganda with the Authority's approval; if approval is granted the foreign reinsurer must establish and maintain at the central bank a security deposit equivalent to five hundred currency points, and the Authority may attach conditions when granting approval.
Section Foreign reinsurers’ representatives Section A foreign reinsurer may, with the approval of the Authority , appoint a reinsurance broker or reinsurer licensed under this Act to be its representative in Uganda for purposes of accepting reinsurance business on its behalf. The Authority may on granting the approval under subsection (1) attach such conditions as it may deem necessary. Where approval of the Authority is granted under this section, the foreign reinsurer shall establish and maintain at the central bank a security deposit equivalent to five hundred currency points. - 74 Verify source ↗
Reinsurance business - Mandatory reinsurance placements with international and national organisations
AI-assisted research summary: Insurers and reinsurers must offer specified minimum shares of reinsurance cessions to Africa-Re (5%), ZEP-RE (10%) and Uganda Re (15%); insurers must first place reinsurance with those organisations or licensed domestic insurers before placing business outside Uganda; the Authority may vary minimums and must approve national reinsurance company shareholding; failure to comply attracts a fine to be prescribed in Regulations.
Section Mandatory reinsurance placements with international and national organisations Section An insurer or reinsurer licensed under this Act shall offer to place with— the African Reinsurance Corporation ( Africa-Re ), a minimum of 5 percent of its reinsurance cessions, under article 27 of the Agreement that established Africa-Re ; the Preferential Trade Area Reinsurance Company ( ZEP-RE ) a minimum of 10 percent of its reinsurance cessions, under articles 20 and 21 of the Agreement that established ZEP-RE ; Uganda Re, a minimum of fifteen percent of its reinsurance of its treaty and facultative cessions. The provisions of subsection (1) shall not affect the right of Africa-Re , ZEP-RE or the reinsurance company incorporated under subsection (1) (c), to accept or decline all or any part of the minimum reinsurance cessions offered or placed by any insurer or reinsurer . An insurer or reinsurer who fails to comply with subsection (1) is liable to a fine to be prescribed in Regulations. Subject to the relevant agreements respectively, the Authority may vary the minimum reinsurance cessions under subsection (1). The shareholding of the national reinsurance company and any changes to the shareholding shall be approved by the Authority . An insurer shall first place reinsurance business with an organisation or company mentioned in subsection (1) or an insurance company licensed under the Act, to the maximum extent possible, before placement of the business outside Uganda.
Part VIII
Amalgamations and transfers
- 75 Verify source ↗
Amalgamations and transfers - Restrictions on amalgamations and transfers
AI-assisted research summary: An insurer or HMO must not transfer, accept a transfer, or amalgamate its insurance business without the prior written approval of the Authority.
Section Restrictions on amalgamations and transfers Section An insurer or HMO shall not, without the prior written approval of the Authority — A transaction contrary to subsection (1) is void where the transaction has the effect of— transfer its insurance business , or any part of its insurance business , to another insurer; accept a transfer of the insurance business of another insurer, or any part of that business; or amalgamate its insurance business , or any part of its insurance business , with the business of another insurer. amalgamating the business, or part of the business, of the insurer with the business of another insurer; or transferring a part of the business of the insurer to another insurer. An insurer that contravenes subsection (1) commits an offence and is liable to a fine not exceeding one thousand currency points. - 76 Verify source ↗
Amalgamations and transfers - Application for amalgamation or transfer
AI-assisted research summary: Insurers applying for an amalgamation or transfer must submit an application accompanied by specified documents; life-insurance transfers also require an actuary's report approved by the Authority.
Section Application for amalgamation or transfer Section Where two or more insurers intend to amalgamate or transfer insurance business of any class from one to another— An application under subsection (1) shall be accompanied by- both insurers wishing to amalgamate, jointly; or the insurer wishing to transfer business to another insurer, the document under which the proposed amalgamation or transfer is to take effect; the audited accounts and balance sheets of each insurer intending to amalgamate or effect a transfer; and any other report or document on which the proposed amalgamation or transfer is based. Where the amalgamation or transfer is in respect of life insurance business , in addition to the requirements under subsection (2), the application shall be accompanied by a report of the likely effect of the amalgamation or transfer to the policyholders, prepared by an actuary approved by the Authority . - 77 Verify source ↗
Amalgamations and transfers - Notice of amalgamation or transfer
AI-assisted research summary: Before applying for an amalgamation or transfer, the parties must publish notice in the Gazette and an English newspaper, notify all policyholders and claimants, and make a statement (including actuarial report for life insurance) available for at least thirty days.
Section Notice of amalgamation or transfer Section The parties intending to amalgamate or effect a transfer shall before making the application— publish a notice of the proposed amalgamation or transfer in the Gazette and at least one English language newspaper published in Uganda; send a notice of the application to all policyholders and claimants of the parties; make available for inspection at the principal offices of the parties a statement detailing the particulars of the amalgamation or transfer, including, in the case of life insurance business , the actuarial report for at least thirty days. The notice referred to under subsection (1) shall invite any person who has reasonable ground to believe that he or she would be adversely affected by the amalgamation or transfer to make written representation to the Authority stating reasons, within thirty days from the last day of publication. - 78 Verify source ↗
Amalgamations and transfers - Conditions for approval of transfer of life insurance
AI-assisted research summary: The Authority must not approve an application to transfer a life insurance business unless the transaction transfers the assets relating to the life insurance business in accordance with this section.
Section Conditions for approval of transfer of life insurance Section The Authority shall not approve an application for a transfer of life insurance business unless the transaction involves the transfer of assets relating to the life insurance business proposed to be transferred in accordance with this section. Where the transfer covers all life insurance business of the transferor, all assets representing the life fund maintained by the transferor shall be transferred. Where the transfer applies to a part of the life insurance business of the transferor, the approved proportion of the assets representing the statutory fund maintained by the transferor shall be transferred. - 79 Verify source ↗
Amalgamations and transfers - Decision of the Authority on amalgamation or transfer
AI-assisted research summary: The Authority must decide on amalgamation or transfer within six months, publish and send its decision, may approve or refuse subject to terms, parties must effect the transaction if no communication within that period, aggrieved persons may appeal to the Tribunal within thirty days, and the Tribunal must decide within thirty days of the appeal.
Section Decision of the Authority on amalgamation or transfer Section After a decision is made under subsection (1), the Authority shall- For purposes of subsection (5), notice shall be deemed to have been received within seven days from— The Authority may, after considering an application for amalgamation or transfer, approve or refuse the proposal for amalgamation or transfer subject to terms and conditions it may consider necessary. The Authority shall make its decision under subsection (1) within six months from the date of publication, and if no communication is received by the parties within that period, the parties shall effect the amalgamation or transfer. publish its decision in the Gazette and in one English language newspaper published in Uganda; and send a copy of its decision to the parties to the amalgamation or transfer and any person who made a representation. Where the Authority refuses an amalgamation or transfer, it shall, in writing, give reasons for the refusal to the parties. A person aggrieved by a decision under this section may appeal to the Tribunal within thirty days from the date on which the notice of the decision is received by the Tribunal , and the Tribunal shall make the decision within thirty days from the date of the appeal. the date of the notice to the aggrieved person; or the date of the publication of the notice in the Gazette and the newspaper, whichever is the later. - 80 Verify source ↗
Amalgamations and transfers - Effect of approval of amalgamation or transfer
AI-assisted research summary: When an amalgamation or transfer is approved, the amalgamated insurer or transferee must deposit certified copies with the Authority within ten days; policyholders are not bound by the approving instrument unless given written notice, except where the Authority directs otherwise.
Section Effect of approval of amalgamation or transfer Section Subject to subsection (2), an instrument giving effect to an amalgamation or transfer approved by the Authority shall be effective in law— Where an amalgamation or transfer has been approved, the amalgamated insurer or the transferee insurer shall, within ten days from the date of completion of the amalgamation or transfer, deposit with the Authority certified copies of— to transfer to the amalgamated insurer or transferee all the transferor’s rights and obligations under the policies included in the instruments; or if the instrument so provides, to secure the continuation by or against the amalgamated insurer or the transferee of any legal proceedings by or against either party to the amalgamation or against the transferor which relate to those rights or obligations, Except where the Authority directs otherwise, a policyholder whose policy is part of the approved amalgamation or transfer shall not be bound by the instrument approving the amalgamation or transfer unless he or she has been given written notice of its execution by either of the insurers involved. statements of the respective assets and liabilities; and the documents under which the amalgamation or transfer was effected. - 81 Verify source ↗
Amalgamations and transfers - Application of provisions on amalgamation and transfer to HMOs
AI-assisted research summary: This Part, with the necessary modifications, applies to amalgamations and transfers of HMOs, insurance brokers and reinsurance brokers.
Section Application of provisions on amalgamation and transfer to HMOs Section This Part, with the necessary modifications, applies to amalgamations and transfers of HMOs, insurance brokers and reinsurance brokers.
Part X
Significant changes in control and management and constituting instruments
- 100 Verify source ↗
Significant changes in control and management and constituting instruments - Changes in control of licensee
AI-assisted research summary: Persons may not become or change to significant owners or materially alter control of a licensee except with the Authority's prior written approval; licensees must not allow share dealings that cause such contraventions; contravening persons face a fine not exceeding five hundred currency points.
Section Changes in control of licensee Section A person who is a significant owner of a licensee shall not, except with the prior written approval of the Authority — A person shall not become a significant owner of a licensee , except with the prior written approval of the Authority . significantly increase or reduce the person's control over the licensee ; or cease to be a substantial shareholder of the licensee . For the purposes of subsection (2) (a), regulations made under this Act shall specify the circumstances under which an increase or reduction in a person's control is significant. A licensee shall not cause, permit or acquiesce in any dealing with its shares that would result in a person contravening subsection (1) or (2). A person who contravenes this section is liable to a fine not exceeding five hundred currency points. - 101 Verify source ↗
Significant changes in control and management and constituting instruments - Authority's powers concerning significant owners
AI-assisted research summary: The Authority may issue directives to significant owners and can require disposal of interests or prohibit exercise of rights; failure to comply is an offence punishable by a fine not exceeding one thousand currency points.
Section Authority's powers concerning significant owners Section The Authority may issue a directive under subsection (3) to— a person who is a significant owner of a licensee if the Authority has reasonable grounds for believing that— The factors referred to in subsection (1)(b)(ii) are that the licensee 's ownership structure— If any of the circumstances specified in subsection (1) apply, the Authority may issue a directive to the person— a person who becomes a significant owner in. or acquires increased control over, a licensee without obtaining the Authority 's prior written approval; or the person does not satisfy its fit and proper criteria; or by virtue of the person's significant ownership in. or control over, the licensee , any of the factors specified in subsection (2) apply. is not appropriate having regard to the nature, scale and complexity of its licensed business; adversely affects its financial soundness or the ability of the Authority to supervise it; or is prejudicial to its customers. requiring the person to dispose of the person’s interest in the licensee , in whole or in part, within such time period as is specified in the notice; or prohibiting the person from exercising any rights, including voting rights, attached to the interest. Where the Authority issues a directive under subsection (3)(a) to a person, it may direct that during the period before the person's interest is disposed of, the person is prohibited from exercising any rights, including voting rights and the rights to receive a distribution , attached to the interest. Sections 106 , 108 and 111 apply in relation to any disposal to be made in compliance with a directive issued under subsection (1). A person who, without reasonable excuse, fails to comply with the requirements of a directive issued under this section commits an offence and is liable on conviction to a fine not exceeding one thousand currency points. - 102 Verify source ↗
Significant changes in control and management and constituting instruments - Authority to regulate significant owners
AI-assisted research summary: The Authority may make regulations for the better regulation of significant owners of licensees.
Section Authority to regulate significant owners Section The Authority may make regulations for the better regulation of significant owners of licensees. - 103 Verify source ↗
Significant changes in control and management and constituting instruments - Changes in directors, senior management and key persons in control functions
AI-assisted research summary: A licensee must not appoint certain directors or key control staff who are unfit or without the Authority's prior written approval; a licensee must notify the Authority within ten working days after a senior manager or key control person takes up or ceases office.
Section Changes in directors, senior management and key persons in control functions Section A licensee shall not appoint a director , senior manager or key person in a control function who is not fit and proper and without obtaining the prior written approval of the Authority . A licensee shall, within ten working days, after a senior manager or key person in a control function takes up office or ceases to hold office with, or be employed by, or act for, the licensee , notify the Authority . The notice under subsection (2) shall include a statement of the reasons for the director , senior manager or key person in a control function ceasing to hold office with, be employed by or act for the licensee . - 104 Verify source ↗
Significant changes in control and management and constituting instruments - Authority's powers concerning management and key persons in control functions
AI-assisted research summary: The Authority may direct a licensee by written notice to remove or replace persons who do not meet fit and proper criteria, to ensure they cease certain functions, or to take remedial action; licensees must notify the Authority of material information and failure to comply with subsection (5) is an offence liable to a fine not exceeding five hundred currency points.
Section Authority's powers concerning management and key persons in control functions Section Where the Authority has reasonable grounds to believe that a person specified in subsection (2) does not satisfy the fit and proper criteria, the Authority shall, by written notice direct the licensee to— The following persons are specified for the purposes of subsection (1)— A notice issued under subsection (1)— remove that person and replace the person with another person acceptable to the Authority ; ensure that the person ceases to undertake certain specified functions in relation to the licensee ; take such remedial action in relation to that person as the Authority specifies: a person undertaking any function for a licensee specified by regulations for the purpose of this section. a director of a licensee ; a senior manager of a licensee ; a key person in a control function of a licensee ; and a person undertaking any function for a licensee specified by the Minister , by regulations for the purpose of this section. shall state whether the specified requirements have immediate effect or state the time period within which they shall be complied with; may include directions consequential upon, or ancillary to, the requirements specified in the notice; and may direct that, in the case of a person who it has removed, the person should not be reappointed, or accept reappointment, to the same position, or to any specified position, within the insurance industry, at any time, or a period specified by the Authority , or until conditions specified by the Authority have been met. Subsection (1) has effect notwithstanding any agreement, contract of employment, written law or rule of law or any provision in the licensee ’s constituting documents relating to the person. Where a licensee becomes aware of any information that is reasonably material to the Authority 's fit and proper assessment of the person concerned, the licensee shall notify the Authority as soon as is reasonably practicable. licensee that contravenes subsection (5) commits an offence and is liable to a fine not exceeding five hundred currency points. - 105 Verify source ↗
Significant changes in control and management and constituting instruments - Information to be furnished by an insurer or HMO
AI-assisted research summary: Insurers and HMOs must display certain financial information year-round in offices and branches, publish it in a widely circulated local newspaper within four months after year-end, and submit specified audited financial documents (including an audited balance sheet) to the Authority within prescribed timeframes.
Section Information to be furnished by an insurer or HMO Section An insurer or HMO shall exhibit throughout the year, in a conspicuous place in each of its offices and branches, and shall publish in a local newspaper of wide circulation within four months after the end of its financial year the following— An insurer or HMO shall prepare and cause to be submitted to the Authority an audited balance sheet within three months after the end of its financial year. a copy of the Auditors Report; a statement of financial position clearly indicating the names and signatories of the Directors; a statement of comprehensive income; the companies own statement of comprehensive income and financial position before consolidating its performance with other sister companies; solvency ratios, claims ratios and management expense ratios for the current and previous year. - 99 Verify source ↗
Significant changes in control and management and constituting instruments - Application of this Part
AI-assisted research summary: This Part applies to all licensees, but micro insurance organisations and insurance agents may be exempted by statutory instrument; individual insurance agents and financial institutions with bancassurance authorisation are not covered.
Section Application of this Part Section Except as otherwise provided, and subject to subsections (2) and (3), this Part applies to all licensees. Micro insurance organisations and insurance agents may, by statutory instrument be exempted from the application of this Part. This Part does not apply to insurance agents that are individuals or financial institutions that have been granted bancassurance authorisation .
Part XI
Financial records and statements, financial reporting, audit and actuarial requirements
- 106 Verify source ↗
Financial records and statements, financial reporting, audit and actuarial requirements - Maintenance of financial records
AI-assisted research summary: Every licensee must keep sufficient financial records at its principal office in Uganda and retain them for at least ten years; contravention may lead to a fine not exceeding one thousand currency points.
Section Maintenance of financial records Section Every licensee shall keep, at its principal office in Uganda, records sufficient— to show and explain its transactions; to enable its financial position to be determined with reasonable accuracy, at any time; to enable it to prepare financial statements and make returns as it may be required to prepare and make under this Act; and where applicable, to enable its financial statements to be audited in accordance with this Act. A licensee shall retain the records required to be kept under this section for a period of at least ten years after the end of the financial year to which they relate. Subsection (2) applies to a former licensee . A licensee that contravenes subsection (1) or (2) or a former licensee that contravenes subsection (3) is liable to a fine not exceeding one thousand currency points. - 107 Verify source ↗
Financial records and statements, financial reporting, audit and actuarial requirements - Preparation of financial statements
AI-assisted research summary: A licensee must prepare financial statements for each financial year in accordance with the international financial reporting standards as adopted by the Institute of Certified Public Accountants in Uganda.
Section Preparation of financial statements Section This section applies to an insurer, an insurance broker , a reinsurance broker, HMO, loss adjustor, risk advisor , and a loss assessor . The financial year of every licensee is the period of twelve months beginning on the 1st day of January in each year and ending on the 31st day of December in the same year. A licensee shall prepare financial statements for each financial year in accordance with the international financial reporting standards as adopted by the Institute of Certified Public Accountants in Uganda. - 108 Verify source ↗
Financial records and statements, financial reporting, audit and actuarial requirements - Auditing of accounts and auditors
AI-assisted research summary: Audits of every licensee must be conducted annually by an Authority-approved auditor (or the Auditor General), and the auditor must meet specified independence, qualification, insurance and audit-standard requirements and must not serve continuously for more than four years, followed by a four-year ineligibility.
Section Auditing of accounts and auditors Section The auditor shall — The auditor shall certify whether— The accounts of every licensee shall be audited annually by an auditor approved by the Authority . Where the Auditor General audits the accounts, the Authority 's approval shall not be required. not be an employee, manager, director or shareholder of the licensee ; maintain a professional indemnity policy, as may be determined by the Authority ; be an accounting firm or practicing accountant licensed by the Institute of Certified Public Accountants of Uganda; audit the accounts of the licensee in an independent and impartial manner; ensure that an audit is conducted in accordance with international standards on auditing as adopted by the Institute of Certified Public Accountants of Uganda. The auditor shall satisfy himself or herself that the accounts of the licensee have been properly prepared in accordance with the books and records of the licensee . he or she has obtained adequate information from the books and records of the licensee ; the accounts of the licensee are in accordance with the information given to him or her by the licensee for the purposes of the audit; the financial statements are in accordance with the provisions of this Act; and the financial statements of the licensee give a true and fair view of the licensees financial position and profit or loss. A person shall not act as the auditor of a licensee for a continuous period of more than four years and after that period that auditor is not eligible for appointment as auditor in any of the proceeding four years. - 109 Verify source ↗
Financial records and statements, financial reporting, audit and actuarial requirements - Audit and audit report
AI-assisted research summary: Licensees to which section 107 applies must enable auditors to audit financial statements; auditors must investigate, prepare reports, may require information from directors or employees, and must provide a management letter and audit report on completion.
Section Audit and audit report Section A licensee to which section 107 applies shall make arrangements as are necessary to enable its auditor to audit its financial statements in accordance with this Act including— giving the auditor a right of access at all reasonable times to its financial records and to all relevant documents and records; and providing the auditor with the information and explanations that is required by the auditor for the purposes of the audit. An auditor shall carry out sufficient investigation to enable the auditor to form an opinion on the financial statements, and prepare an audit report, in compliance with this Act. The auditor is entitled to require from a director or an employee of the licensee , information and explanations as the auditor thinks necessary for the performance of the duties of the auditor. Upon completion of the audit of the financial statements of a licensee , the auditor shall provide a management letter and an audit report to the licensee . - 110 Verify source ↗
Financial records and statements, financial reporting, audit and actuarial requirements - Financial statements
AI-assisted research summary: Licensees must prepare and submit annual reports to the Authority within three months after each financial year in a prescribed form; intermediaries subject to section 107 must keep proper books and submit returns in line with adopted IFRS and as required by the Authority's regulations; the Authority may reject inaccurate or non-compliant statements and require rectification or amend documents at the licensee's cost.
Section Financial statements Section Every licensee shall prepare and submit to the Authority , within three months from the end of each financial year in a prescribed form, annual reports containing— A licensee shall, in respect of and within such periods as may he specified in regulations made under this Act, submit to the Authority — prescribed particulars relating to all financial transactions undertaken by it during that year including, where applicable, a directors certificate, financial condition report; a certified true copy of its financial statements, an auditor’s certificate and any reports presented to shareholders; returns that shall be in the prescribed form in the regulations; the auditor’s report; any report on the affairs of the licensee made to its shareholders in respect of the financial year; details of commission scales and incentive plans, bonuses or other incentives; a statement detailing premiums which remain unpaid by the insured; and any other information that the Authority may require as may be specified in the Regulations. periodic financial statements, that may be unaudited; a return in the form approved by the Authority , if any; and such other information and documentation as may be specified in the regulations. Every intermediary to which section 107 applies shall, in accordance with international financial reporting standards adopted by the Institute of Certified Public Accountants of Uganda, keep proper books and submit to the Authority such annual and periodic returns and documents as the Authority may, by regulations, require to be submitted to it within the time period specified in the regulations. Where the Authority considers that financial statements or documents submitted by a licensee under this section are inaccurate or incomplete or that they are not prepared in accordance with accounting standards, the Authority may reject the financial statements or documents. Where the Authority rejects financial statements or documents under subsection (4), the Authority shall issue appropriate directives to the licensee to rectify the inaccuracy or incompleteness and resubmit the financial statements or documents, and if the licensee does not comply with the directive, the Authority may amend the financial statements or documents at the cost of the licensee . - 111 Verify source ↗
Financial records and statements, financial reporting, audit and actuarial requirements - Group financial statements
AI-assisted research summary: The Authority may require a licensee that is a member of a group to submit group financial statements, and may require those statements to be audited by specified auditors approved by the Authority in writing.
Section Group financial statements Section Where a licensee is a member of a group of companies, the Authority may require the licensee to submit group financial statements. The Authority may require that the group financial statements are audited by the auditor of the licensee or by an auditor authorised by the Institute of certified Public Accountants of Uganda and approved by the Authority in writing. - 112 Verify source ↗
Financial records and statements, financial reporting, audit and actuarial requirements - Powers of Authority in relation to financial statements and other reports
AI-assisted research summary: The Authority may direct licensees to provide auditor-prepared reports and may revoke or appoint auditors; reports are at the licensee's cost and the Authority must give written grounds and allow representations before revocation.
Section Powers of Authority in relation to financial statements and other reports Section The Authority may at any time direct a licensee to supply the Authority with a report, prepared by its auditor or such other person as may be nominated by the Authority , on such matters as the Authority may determine. A report prepared under subsection (1) shall be at the cost of the licensee . Where the Authority is of the opinion that the auditor of a licensee has failed to fulfil his or her obligations under this Act or no longer meets the criteria for which he or she was approved as an auditor, the Authority may revoke the appointment of the auditor. Before the Authority revokes the appointment of an auditor under subsection (3), the Authority shall, in writing, give the auditor the grounds upon which the revocation is to be made and require the auditor to make written representations on those grounds. Where a licensee fails to appoint an auditor in accordance with this Act, the Authority may appoint a qualified person to act as the auditor of the licensee . An auditor appointed under subsection (5) is considered, for the purposes of this Act, to have been appointed by the licensee and the licensee shall be responsible for the auditor’s costs and remuneration. - 113 Verify source ↗
Financial records and statements, financial reporting, audit and actuarial requirements - Appointment of actuary by an insurer and HMO
AI-assisted research summary: Every insurer and HMO must appoint a qualified actuary when starting long-term business, meet written-consent and Authority-approval conditions for appointments, notify the Authority when an appointment ends, appoint a replacement within three months, and may be fined for contraventions; the Authority may exempt specified small insurers by regulation.
Section Appointment of actuary by an insurer and HMO Section Every insurer and HMO shall, within one month or such other longer period, not exceeding six months, as the Authority may determine, of beginning to carry on long-term business, appoint an actuary as actuary to the insurance business . An insurer and HMO shall not appoint a person as actuary under subsection (1) unless the person is a qualified actuary , and has consented in writing to the appointment and the Authority has given its prior written approval to the person's appointment. Whenever an appointment under subsection (1) comes to an end, the insurer and HMO shall, within fourteen days, give a written notice to the Authority stating the fact. The insurer and HMO shall, within three months after the appointment comes to an end, appoint another actuary and shall give a written notice to the Authority stating the name, qualifications and experience of the new appointee. An insurer or HMO that contravenes subsections (1), (2), (3) and (4) is liable to a fine not exceeding one thousand currency points. The Authority may, by regulations, exempt specified types and descriptions of micro insurance organisations and non-life direct insurers from the requirement to have an actuary . - 114 Verify source ↗
Financial records and statements, financial reporting, audit and actuarial requirements - Actuarial investigation and actuarial report
AI-assisted research summary: Licensed insurers or HMOs must ensure their appointed actuary undertakes annual actuarial reviews (and group reviews when required), ensure the actuary can access needed documents, and ensure a written actuarial report is prepared and submitted to the Authority; the appointed actuary may require information from directors or employees; contravention is an offence liable to a fine up to one thousand currency points.
Section Actuarial investigation and actuarial report Section A licensed insurer or HMO shall — ensure that its appointed actuary undertakes an actuarial review of its business and, if required by the regulations or the Authority , a group actuarial review, in respect of each financial year; and take all reasonable steps to ensure that the appointed actuary prepares a written actuarial report complying with the regulations within sufficient time for the insurer or HMO to submit the actuarial report to the Authority . A licensed insurer or HMO shall ensure that the appointed actuary has access to all documents and records that the actuary requires to carry out an actuarial investigation and to prepare the report. The appointed actuary is entitled to require from a director or an employee of the insurer or HMO such information and explanations as the appointed actuary thinks necessary for the performance of the duties of an actuary . A licensed insurer or HMO that contravenes subsection (1) commits an offence and is liable to a fine of not exceeding one thousand currency points.
Part XII
Inspections, access to information and enquiries
- 115 Verify source ↗
Inspections, access to information and enquiries - Authority to inspect licensees
AI-assisted research summary: The Authority may inspect licensees and related premises and must inspect every licensee at least once in three years; licensees must cooperate and persons who obstruct inspections commit an offence.
Section Authority to inspect licensees Section The Authority may, at any time, for the purpose of performing its function under subsection (1)— The Authority may, at any time before the expiry of three years, inspect the affairs of a licensee if it has reason to believe that the— The Authority shall inspect the affairs of every licensee at least once in three years. inspect the premises and the business, including the procedures and controls, of a licensee or a subsidiary or holding company of a licensee ; inspect any premises or business of a person to whom a licensee has outsourced any functions or activities; inspect the assets, including cash, belonging to or in the possession of or control of a licensee or any of its subsidiaries or holding companies; examine and make copies of documents belonging to or in the possession or control of a licensee , any of its subsidiaries or holding companies; or seek information and explanations from the officers, employees, agents and representatives of a licensee or any of its subsidiaries or holding companies. the interests of the policyholders, shareholders or members of the public could be prejudiced; the licensee is unable to meet his or her obligations under the Act; the licensee has not complied with the provisions of this Act; the licensee is not complying with anti-money laundering and combating financing of terrorism laws; any other reason. The Authority may appoint competent persons to carry out the inspection on its behalf. The person appointed to inspect under this section may question any officer of the licensee under oath. The licensee shall cooperate with the person appointed to inspect under this section by providing him or her full access to books, records, files and other documents which are relevant to the inspection, and any person who fails to cooperate commits an offence. The Authority shall inform the licensee of the conclusions reached following the inspection and may require the licensee to comply, within a period it may specify, with any directive it may issue to remedy defects disclosed by the inspection. The Authority shall give reasonable notice to the licensee or other person of its intention to exercise its powers under this section except that where it appears to the Authority that the circumstances so justify, the Authority may exercise its powers without giving notice of its intention to do so. The Authority shall provide a licensee with a written report summarising the outcomes of every inspection that it undertakes. A person who prevents the Authority or an inspector from performing the duties under this section commits an offence and is liable to a fine not exceeding one thousand currency points. - 116 Verify source ↗
Inspections, access to information and enquiries - Notice to provide information or produce documents
AI-assisted research summary: The Authority may issue a written notice requiring specified persons to provide information or produce documents, specifying where and within what period they must comply; failure without reasonable excuse is an offence punishable by a fine not exceeding one thousand five hundred currency points.
Section Notice to provide information or produce documents Section Where reasonably required by the Authority for the performance of its functions under this Act or any other written law, the Authority may, by notice in writing given to a person specified in subsection (2), require the person to— A notice under subsection (1)— may be issued to— The Authority may require— any information or documents provided or produced under this section to be— provide specified information or information of a specified description; or produce specified documents or documents of a specified description. a licensee ; a former licensee ; a person the Authority reasonably believes to be carrying on, or to have at any time carried on. unauthorised business; a related party in relation to a person specified in subparagraph (i), (ii) or (iii); or to any person who the Authority reasonably believes is in possession of the information or documents; and shall specify the place where and the period within which the information or documents shall be provided or produced. provided or produced in such form as the Authority may specify; and verified or authenticated in such manner as the Authority may reasonably specify; that the information to be provided to, or the documents be produced to a person specified in the notice: and that the person to whom the notice is issued, or a person who is or has been a director , auditor or actuary provides such explanations relating to the information or documents as the Authority may reasonably require. The Authority may take copies or extracts of any document produced under this section. Where a person claims a lien on a document, its production under this section is without prejudice to that lien. A person who, without reasonable excuse, fails to comply with a notice issued under this section commits an offence and is liable on conviction to a fine not exceeding one thousand five hundred currency points.
Part XIII
Remedial measures and enforcement
- 117 Verify source ↗
Remedial measures and enforcement - Application of this Part to financial institutions holding bancassurance authorisation
AI-assisted research summary: Except as expressly provided, this Part does not apply to a financial institution holding a bancassurance authorisation.
Section Application of this Part to financial institutions holding bancassurance authorisation Section Except as expressly provided, this Part does not apply to a financial institution holding a bancassurance authorisation . - 118 Verify source ↗
Remedial measures and enforcement - Recovery plans
AI-assisted research summary: The Authority may require a licensee to prepare a recovery plan where it has reasonable grounds to believe certain solvency, prudence, conduct, public-interest, or compliance problems apply.
Section Recovery plans Section The Authority may require a licensee to prepare a recovery plan if the Authority has reasonable grounds to believe that one or more of the following applies — the licensee has breached or is likely to breach solvency control levels specified in regulations made under section 48 (3); the business of the licensee has not been, or is not being conducted in a prudent manner or in accordance with sound insurance principles; the licensee is carrying on or is likely to carry on its licensed business in a manner detrimental to the interests of its policyholders or prospective policyholders or, in the case of a HMO, its members or prospective members, or the public interest; or the licensee has failed or is failing to comply with any requirement of this Act or any condition of its licence . - 119 Verify source ↗
Remedial measures and enforcement - Recovery plan to be approved by the Authority
AI-assisted research summary: Licensees must provide a recovery plan to the Authority; the Authority must inform the licensee if it is satisfied and may require amendments, and licensees may only amend with written Authority approval.
Section Recovery plan to be approved by the Authority Section A licensee shall, within such period as the Authority may require the licensee , provide a recovery plan to the Authority . The Authority shall, after receiving the recovery plan, inform the licensee whether the Authority is satisfied with the recovery plan no longer meets the purpose or requirements upon which it was approved. Where the Authority is not satisfied with the recovery plan, the Authority may require the licensee to amend the recovery plan and to resubmit the plan to the Authority for approval within a period specified by the Authority . A licensee may amend its recovery plan only with the written approval of the Authority . Where, at any time, the Authority is no longer satisfied that the recovery plan, the Authority may, by written notice, require the licensee to amend the plan in the manner specified by the Authority and to resubmit the plan to the Authority for approval within a reasonable time that the Authority may specify. - 120 Verify source ↗
Remedial measures and enforcement - Licensee to comply with recovery plan
AI-assisted research summary: Licensees must comply with the recovery plan after it is approved by the Authority.
Section Licensee to comply with recovery plan Section Every licensee shall, after the recovery plan has been approved by the Authority , comply with the plan. - 121 Verify source ↗
Remedial measures and enforcement - Directives to licensees
AI-assisted research summary: The Authority may issue directives to licensees when specified supervisory grounds exist; licensees who fail to comply may be fined up to one thousand currency points.
Section Directives to licensees Section Where the Authority — has reasonable grounds to believe that— the licensee has departed substantially from the most recent business plan submitted to the Authority ; the governance structure of the licensee is no longer appropriate having regard to the nature, scale and complexity of its business and the risks to which it is exposed; one of the grounds specified in section 118 applies to the licensee; or whether as a result of inspection or otherwise, has identified a matter that, in its opinion, represents a supervisory risk, A licensee that fails to comply with a directive issued under this section is liable to a fine not exceeding one thousand currency points. - 122 Verify source ↗
Remedial measures and enforcement - Directives by Authority to persons carrying on unauthorised business
AI-assisted research summary: The Authority must issue a written directive to persons carrying on unauthorised business requiring them to stop or take protective actions; persons who fail to comply are liable to a fine not exceeding one thousand currency points.
Section Directives by Authority to persons carrying on unauthorised business Section The Authority shall issue a written directive to a person carrying on, or that has carried on, unauthorised business requiring the person to cease carrying on the unauthorised business concerned or to take such action as the Authority considers necessary to protect the property of, or in the custody, possession or control of, the person or the interests of persons with whom the person has carried on the unauthorised business. A person who fails to comply with a directive issued under subsection (1) is liable to a fine not exceeding one thousand currency points. - 123 Verify source ↗
Remedial measures and enforcement - Appointment of investigator
AI-assisted research summary: The Authority may appoint investigators and direct them; investigators must report to the Authority and provide copies to the licensee or HMO; failing to assist an investigator is an offence punishable by a fine not exceeding one thousand currency points.
Section Appointment of investigator Section The Authority may appoint one or more competent persons as an investigator to conduct an investigation on its behalf— with respect to a licensee if it considers that there are grounds for the Authority to— The matters investigated by an investigator appointed under subsection (1) may include— The Authority may give directions to the investigator concerning any one or more of the following— Where an investigator is appointed with respect to a former licensee , an investigation under subsection (2) shall— The Regulations may provide for the— require a recovery plan; issue a directive; apply to the Court for a protection order; or the Authority is of the opinion that it is desirable to appoint an investigator in the interests of the customers or creditors or potential customers or creditors of the licensee or in the public interest; and with respect to any person if it appears to the Authority that the person is carrying on, or has carried on, unauthorised business. the nature, conduct or financial condition of the person's business; a particular aspect of the person's business; the ownership or control of the person being investigated; in the case of a licensee , whether there are grounds for taking any of the actions specified in subsection (1)(a)(i) to (iv); whether the person is carrying on, or has carried on, unauthorised business. the scope of the investigation; the period for the conduct of the investigation; the conduct of the investigation; or the manner in which the investigator shall report to the Authority . in the case of paragraphs (a) and (b), extend only to the person's business carried on at any time when the person was a licensee ; and in the case of paragraph (c), extend only to the ownership or control of the person at any time when the person was a licensee . An investigator shall submit a report of his or her investigation to the Authority and a copy shall be provided to the licensee or HMO that was the subject of investigation. notice to be given to a person to be investigated under this section; conduct of an investigation; powers of an investigator appointed under this section; and payment of remuneration to the investigator. A person who fails to provide all assistance reasonably required by an investigator appointed under this section commits an offence and is liable on conviction to a fine of not exceeding one thousand currency points. - 124 Verify source ↗
Remedial measures and enforcement - Powers of investigator
AI-assisted research summary: An investigator appointed under this section has powers to require attendance, to require information or documents, and (with written notice) to investigate related businesses when considered necessary for the investigation; those powers may only be exercised to the extent the investigator considers them necessary.
Section Powers of investigator Section Subject to subsection (2) and to any direction under section 123 (3), an investigator appointed under this section has— An investigator appointed under section 123 may, if the investigator considers it necessary for the purposes of the investigation, on giving written notice to the person concerned, also investigate the business of any person who is, or at any relevant time has been a— the power to require the person under investigation or any person connected with the person under investigation to attend before the investigator to answer questions; and the powers of the Authority to require the provision of information or documents The investigator may only exercise the powers under subsection (1) to the extent that the investigator considers it necessary for the purposes of the investigation. member of the group of which the person under investigation is a part; or partnership of which the person under investigation is a member. - 125 Verify source ↗
Remedial measures and enforcement - Management takeover
AI-assisted research summary: The Authority may appoint a statutory manager to manage a licensee and take custody of its assets on specified grounds; the statutory manager has the board's functions and may take a range of actions.
Section Management takeover Section The following grounds are specified for the purposes of subsection (1)- in the opinion of the Authority — The statutory manager of a licensee shall have the power to— The Authority may, on any ground specified in subsection (2), appoint a person to be known as a statutory manager to manage, control and direct the business and affairs of a licensee and to take custody of its assets. the licence of the licensee has been revoked under this Act; in the case of an insurer, the insurer has breached or is likely to breach a solvency control level specified in regulations made under section 48 (3); the licensee is conducting business in a manner contrary to this Act; the continuation by the licensee of its activities is detrimental to the interests of its customers; the licensee is engaged in or is knowingly facilitating criminal activities. continue or discontinue any of its operations as a licensee notwithstanding the revocation of its licence ; employ necessary staff; execute any instrument in the name of the licensee ; initiate, defend and conduct in its name any action or proceeding to which the licensee may be a party; appoint an advisory board revoke a licence ; sell or otherwise dispose of any of the property of the licensee and any subsidiaries and holding companies; or do any other act which is necessary to enable the statutory manager to execute his or her obligations under this section or section 126 . The statutory manager may, after his or her appointment, appoint an auditor to perform such functions as the statutory manager may consider appropriate. The Authority shall upon appointing a statutory manager of a licensee , immediately inform the public. Upon appointment of a statutory manager , the board of directors of the licensee shall stand suspended. A statutory manager shall have the functions of the board of directors of the licensee , including the board's powers of delegation and use of the seal. A statutory manager shall, upon assuming the management, control and conduct of the affairs and business of a licensee , discharge his or her duties with diligence with due regard to the interests of the licensee , its policy holders and other creditors. A statutory manager shall hold office on such terms and conditions as may be prescribed in the instrument of appointment, and in any case, at the cost of the licensee . The Authority shall oversee and give general direction to the statutory manager in the performance of his or her duties under this Part. - 126 Verify source ↗
Remedial measures and enforcement - Duties of a statutory manager
AI-assisted research summary: Describes duties and powers of a statutory manager, including tracing assets, recovering debts, reorganising the licensee, appointing interim boards via the Authority, declaring moratoria on payments, requiring information from former officers, and penalties for wilful refusal to provide information.
Section Duties of a statutory manager Section The duties of a statutory manager shall include— The declaration of a moratorium shall— Where a licensee complies with the prudential requirements set out in this Act within the period specified in this Part, the Authority shall request the shareholders of the licensee , subject to the provisions on appointment of the board directors, to appoint an interim board of directors, charged with the management and control of the licensee . The interim board of directors appointed under this section shall hold office on such terms and conditions as may be prescribed in the instrument of appointment, and in any case, at the cost of the licensee . Where, within six months of its appointment, the Authority is of the opinion that the interim board of directors is managing the licensee in accordance with prudential requirements, the Authority shall request the shareholders of the licensee , subject to the provisions on appointment of board of directors, to confirm the appointment of each eligible individual director . tracing and preserving all the property and assets of the licensee ; recovering debts and other sums of money due and owing to the licensee ; evaluating the capital structure and management of the licensee and recommending to the Authority any restructuring or reorganization which he or she considers necessary and which, subject to the provisions of any other written law, may be implemented by him or her on behalf of the licensee ; entering into contracts in the ordinary course of the business of the licensee including raising of funds by borrowing on such terms as he or she may consider reasonable; obtaining from any officers or employees of the licensee any documents, records, accounts, statements or information relating to its business; issuing a new balance sheet and profit and loss accounts; making reports to the Authority on the discharge of his or her duties under this Act; and any other duties that may be assigned to him or her by the Authority . For the purposes of discharging his or her functions under this section, the statutory manager may declare a moratorium on the payment by the licensee of its liabilities to depositors and other creditors. be applied equally and without discrimination to all classes of creditors; limit the maximum rate of interest which shall accrue on deposits and other debts payable by the institution during the period of the moratorium to the minimum rate as may be prescribed by the Authority notice for the purposes of this section except that this paragraph shall not be construed so to impose an obligation on the licensee to pay interest or interest at a higher rate to any depositor or creditor than would otherwise have been the case; suspend the running of time for the purposes of any law of limitation in respect of any claim by any depositor or creditor of the institution; or cease to apply upon the termination of the manager’s appointment in which case the rights and obligations of the licensees, its policyholders and creditors shall, except to the extent provided in paragraphs (b) and (c), be the same as if there had been no declaration under this subsection. A statutory manager may for the purposes of exercising his duties under this Act require any person who has at any time been an officer or director of the licensee to provide the statutory manager with information relating to business of the financial institution . Any person who wilfully fails, refuses or neglects to provide any information requested under subsection (4) of this section commits an offence and is liable on conviction to a fine not exceeding two hundred and fifty currency points or imprisonment not exceeding two years or both. - 127 Verify source ↗
Remedial measures and enforcement - Removal and termination of statutory manager
AI-assisted research summary: The Authority may terminate or remove a statutory manager and appoint another; when statutory management ends and no winding-up proceedings commence, management revests in the board of directors.
Section Removal and termination of statutory manager Section The Authority may, by written notice, terminate the appointment of the statutory manager and the statutory management process if it is of the opinion that— The Authority may remove a statutory manager for failure to perform his or her duties or for another good cause and appoint another suitably qualified and experienced person to act as statutory manager in place of the statutory manager removed. the purpose of the statutory management has been achieved or cannot be achieved; or the licensee should be wound up under Part XIV. On the termination of the statutory management, unless proceedings for the winding up of the licensee under Part XIV are commenced, the management of the licensee revests in the board of directors. - 128 Verify source ↗
Remedial measures and enforcement - Application for and grant of protection order
AI-assisted research summary: The Authority may apply to court for a protection order against a licensee or a person carrying on unauthorised business, but before doing so the Authority must be of the opinion that the order is necessary to protect or preserve the person's business or property or the interests of customers, prospective customers, creditors or the public.
Section Application for and grant of protection order Section The Authority may apply to lire court for an order under this section with respect to a licensee or a person that is carrying on, or has carried on, unauthorised business. Before the Authority applies for a protection order in respect of a licensee or a person carrying on unauthorised business, the Authority must be of the opinion that the order is necessary to protect or preserve the business or property of the person with respect to whom the application is made, or the interests of the person's customers, prospective customers, creditors or the public.
Part XIV
Winding up of licensees and other matters
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Winding up of licensees and other matters - Winding up
AI-assisted research summary: An insurer carrying on life insurance business must not be wound up voluntarily without the prior written approval of the Authority, except to effect an amalgamation or transfer.
Section Winding up Section Notwithstanding anything contained in the Companies Act, 2012 to the contrary, an insurer carrying on life insurance business shall not be wound up voluntarily without the prior written approval of the Authority except for the purposes of effecting an amalgamation or transfer. - 130 Verify source ↗
Winding up of licensees and other matters - Powers to wind up a licensee
AI-assisted research summary: Only the Authority may wind up a licensee; the Authority must decide whether to handle winding-up petitions or permit petitioners to continue in court, and winding-up procedures are to be set by regulations.
Section Powers to wind up a licensee Section The Authority is the only body authorised to wind up a licensee . A winding up petition relating to a licensee shall be referred to the Authority which shall decide whether to handle the petition or give permission for the petitioner to proceed with the court process. The winding up procedures for licensees shall be prescribed by regulations. - 131 Verify source ↗
Winding up of licensees and other matters - Winding up by the Authority
AI-assisted research summary: The Authority may wind up a licensee's business where specified conditions exist (e.g. unlicensed business, insufficient capital or solvency margin, licence revocation after appeal, inability to meet policyholder obligations, or if it is just and equitable in policyholders' interests).
Section Winding up by the Authority Section The Authority may wind up the business of a licensee where— the licensee is carrying on insurance business without being licensed under this Act; the licensee has not complied with the prescribed paid-up capital or security deposit requirements under this Act, or where the margin of solvency of the licensee is less than that specified under this Act; in the absence of an appeal or dismissal of an appeal, revocation of a licence takes place; the licensee is not able to meet its obligations to a policyholder under an insurance contract ; or the Authority believes it is just and equitable and in the interests of the policyholders to wind up the licensee . Notwithstanding the provisions of the Companies Act 2012 and the Insolvency Act 2011, in the winding up of an insurer or HMO, insurance claims shall have priority and the assets of the company, shall first be applied in satisfying the company’s liabilities under insurance contracts after payment of the properly incurred costs and expenses of the winding up.
Part XV
General provisions
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General provisions - Requirement to consult
AI-assisted research summary: Before making, amending or replacing regulations or issuing guidance, the Authority must give substantially affected persons copies of the proposed documents, allow them a reasonable opportunity to make written representations, and consider those representations; it may publish documents online, consult associations for individuals, and may respond to representations.
Section Requirement to consult Section Before making, amending or replacing any regulation or issuing any guidance, the Authority shall— provide persons that the Authority considers will be substantially affected with a copy of the proposed— The Authority may comply with its obligations under— regulations or guidance; amendments to the regulations or guidance; or replacement regulations or guidance; give those persons a reasonable opportunity to make written representations to the Authority ; and consider any written representations that it receives. subsection (1)(a), by publishing the relevant documents on its internet site; and sub section (1), in respect of a person by consulting with any professional or trade association of which the person is a member and considering representations by that association. The Authority may provide a response to any written representations that it receives. - 133 Verify source ↗
General provisions - Insurable interest policies
AI-assisted research summary: The provision lists classes of persons who are deemed to have an insurable interest in another's life.
Section Insurable interest policies Section For purposes of subsection (1), an insurable interest shall be deemed to be had by— A policy of insurance shall not be issued to any person on the life of any person where that person has no insurable interest in the life or event. a parent of a minor or the guardian of a minor on the life of a minor; a husband, on the life of his wife; a wife, on the life of her husband; any person on the life of another upon whom he or she is wholly or in part dependent for support or education; a company or other person, on the life of an officer or employee of the company or that other person; a person who has a pecuniary interest in, the duration of the life of another person, in the life of that person to the extent only of that pecuniary interest at the outset. - 134 Verify source ↗
General provisions - Protection of information from disclosure
AI-assisted research summary: Members of the Board, staff of the Authority and any person performing functions under the Act who receive information must treat it as confidential and must not disclose it except when required by law.
Section Protection of information from disclosure Section A member of the Board , staff of the Authority or any person performing a function or duty under this Act, who receives information in the discharge of his or her functions under this Act, shall treat the information which comes to the knowledge of the person as confidential and shall not disclose the information unless required by law. - 135 Verify source ↗
General provisions - Ombudsman to handle complaints and disputes
AI-assisted research summary: Until the Ombudsman is established, the Authority must perform the functions of the Ombudsman.
Section Ombudsman to handle complaints and disputes Section Regulations shall prescribe — There is established an Ombudsman to arbitrate complaints and disputes concerning licensees and the general public. the procedures for the arbitration by the Ombudsman of complaints and disputes concerning licensees referred to the Authority ; the nature of complaints and disputes subject to arbitration; the fees payable in respect of arbitration. Until the establishment of the Ombudsman, the Authority shall perform the functions of the Ombudsman. - 136 Verify source ↗
General provisions - Insurance Appeals Tribunal
AI-assisted research summary: Continues the Insurance Appeals Tribunal and sets its composition at five persons (including one advocate), requires at least two women members, provides that the Minister appoints the chairperson, states the Tribunal conducts business on an ad hoc basis, and that expenses are borne by the Authority or as determined in the Regulations.
Section Insurance Appeals Tribunal Section The Insurance Appeals Tribunal established under the repealed Act is continued in existence in accordance with this Act. The Tribunal shall consist of five persons with professional qualifications and experience relating to the functions of the Authority , one of whom shall be an advocate. At least two of the members of the Tribunal shall be women. The Minister shall appoint one of the members to be the chairperson of the Tribunal . The Tribunal shall conduct its business on an ad hoc basis. Expenses of the administration of the Tribunal shall be borne by the Authority or as shall be determined in the Regulations. - 137 Verify source ↗
General provisions - Tribunal to review decisions of the Authority
AI-assisted research summary: Provides appeal rights to the Tribunal from Authority decisions, sets timelines for appeals and Tribunal communications, requires the Tribunal to give an opportunity to be heard, makes the Authority responsible for Tribunal expenses, and empowers the Minister to make regulations.
Section Tribunal to review decisions of the Authority Section A person aggrieved by any decision of the Authority may, within one month from the date the decision is communicated by the Authority , appeal to the Tribunal against the decision. The Tribunal shall not decide any matter brought before it without giving the appellant an opportunity to be heard. The Tribunal may uphold, reverse, revoke or vary a decision of the Authority or remit the matter back to the Authority for reconsideration, with or without guidance. A decision of the Tribunal shall be in writing and shall be communicated within 90 days after an appeal is made to the Tribunal . A party aggrieved by the decision of the Tribunal , may within 30 days of the date of communication of the decision of the Tribunal , lodge a notice of appeal with the High Court. The Authority shall bear the expenses of the administration of the Tribunal . The Minister may, by statutory instrument, make regulations prescribing matters to enable the effective operation of the Tribunal . The Regulations made under subsection (7) shall be laid before Parliament. - 138 Verify source ↗
General provisions - Policyholders' Compensation Fund
AI-assisted research summary: The Policyholders’ Compensation Fund is managed by a board of trustees whose members are appointed by the Minister.
Section Policyholders' Compensation Fund Section The money of the Policyholders’ Compensation Fund shall consist of— The Policyholders’ Compensation Fund established under the repealed Act is continued in existence in accordance with this Act. The function of the Policyholders’ Compensation Fund is to build a reserve fund that can be used to provide a level of compensation, but not necessarily full compensation, to eligible unpaid claimants under policies issued by licensees that enter into liquidation under the Insolvency Act, 2011. The Policyholders’ Compensation Fund shall be managed by a board of trustees. The members of the board of trustees shall be appointed by the Minister and the composition and the terms and conditions of service of the board of trustees shall be prescribed by regulations. a premium levied on licensees, after consultation with licensees on recommendation of the Authority ; loans, grants, gifts, donations; and money from any other source, approved by the Minister in writing. - 139 Verify source ↗
General provisions - Regulations on Policyholders’ Compensation Fund
AI-assisted research summary: The manner of governing the Policyholders' Compensation Fund and entitlement to and payments from the Fund shall be prescribed by regulations.
Section Regulations on Policyholders’ Compensation Fund Section The manner of governing the Policyholders' Compensation Fund, the entitlement to payments from the Fund and payments out of the Fund shall be prescribed by regulations. - 140 Verify source ↗
General provisions - Establishment of Insurance Training College
AI-assisted research summary: Establishes an Insurance Training College, transforms the existing Insurance Institute into the College, sets governance and administrative duties, requires the Minister to appoint the College Board on the Authority's recommendation, mandates the College to receive and apply the insurance training levy (section 141) to fund training and certification, requires audited accounts to be filed within ninety days after the financial year and audited under the Public Finance Management Act, 2015, and makes every licensed person a member of the College.
Section Establishment of Insurance Training College Section Regulations may be made by statutory instrument on the recommendation of the Authority , prescribing— There is established an Insurance Training College responsible for insurance training in Uganda. For the purposes of subsection (1), the Insurance Institute of Uganda existing immediately before the commencement of this Act shall be transformed into the Insurance Training College. The Minister , on the recommendation of the Authority , shall appoint the Board of the College. The College shall receive and administer the Insurance Training levy specified in section 141 . The insurance training levy shall be applied by the College to fund insurance training for licensees and for the certification of training programs for licensees provided by the College or other body specified by the Minister , by statutory instrument. The College shall, within ninety days of the end of the financial year, file with the Authority , its audited accounts for the preceding year. The accounts of the College shall be audited in accordance with the Public Finance Management Act, 2015. Every person licensed under this Act shall be a member of the Insurance Training College. the governance requirements for the College: the procedures for the safeguarding of the assets of the College; the manner of preparation, auditing and submission to the Authority of financial statements; and such other matters as the Minister considers appropriate. - 141 Verify source ↗
General provisions - Insurance training levy
AI-assisted research summary: Insurers and HMOs must remit an insurance training levy on gross direct premiums to the College; licensees must collect the levy; the Authority prescribes the levy rate by Regulations; the College must apply the levy to fund training, examinations, certification and registration of licensees.
Section Insurance training levy Section Every insurer and HMO, shall remit to the College, a levy on the gross direct premium written by licensees. The levy shall be charged on the policyholders and collected by licensees. The levy shall be at a rate prescribed by the Authority , by Regulations. The insurance training levy shall be applied by the College to fund insurance training, examination, certification and registration of licensees. - 142 Verify source ↗
General provisions - Prohibition of misleading advertisements
AI-assisted research summary: Any person must not, by advertisement, statement, promise or forecast that they know is misleading, false or deceptive, by dishonest concealment of facts, or by recklessly making such communications, engage in misleading advertisements.
Section Prohibition of misleading advertisements Section Any person who— by advertisement, statement, promise or forecast which he or she knows to be misleading, false or deceptive; by dishonest concealment of facts; or by reckless making of an advertisement, statement, promise or forecast which is misleading, false or deceptive, - 143 Verify source ↗
General provisions - Annual and other reports
AI-assisted research summary: The Authority must, within six months after each financial year ends, make and submit to the Minister a report on its activities and provide audited financial statements and the auditor’s report; the Board must also submit other reports when the Minister requires them.
Section Annual and other reports Section The Authority shall, not later than six months after the end of each financial year, make and submit to the Minister , a report on the activities of the Authority during that financial year. The Authority shall submit to the Minister , together with the report referred to in subsection (1), the audited financial statements of the Authority , and the auditor’s report on those statements. The Board shall also submit to the Minister , such other reports on its activities or on any other matter as the Minister may, from time to time, require. Any report made under this section shall be published by the Authority in a manner determined by the Authority . - 144 Verify source ↗
General provisions - Service of notices on the Authority
AI-assisted research summary: Notices or documents required to be served on the Authority may be delivered at the office of the Chief Executive Officer, with evidence of receipt.
Section Service of notices on the Authority Section Any notice or other document required to be served on the Authority may be served by delivery at the office of the Chief Executive Officer and obtaining evidence of receipt. - 145 Verify source ↗
General provisions - Protection from liability
AI-assisted research summary: Members of the Board and officers, staff, and persons acting for the Authority are not personally liable for acts or omissions done in good faith while performing functions under the Act.
Section Protection from liability Section A member of the Board shall not be personally liable in respect of any act or omission done in good faith in the performance of his or her functions under this Act. An officer, a member of staff, any person acting on behalf of the Authority or any person performing his or her functions under this Act shall not be personally liable in respect of any act or omission done in good faith in the performance of his or her functions under this Act. - 146 Verify source ↗
General provisions - Offences and penalties
AI-assisted research summary: Insurers must not pay commissions to intermediaries who are not licensed; company officers who authorise contraventions are personally liable to penalties.
Section Offences and penalties Section A person who, being a manager or officer of a company licensed under this Act— An insurance or reinsurance company which fails to comply with an order issued by the Minister or the Authority under this Act or contravenes any provision of this Act commits an offence and is liable to— An insurance intermediary which fails to comply with an order issued by the Minister or the Authority under this Act or contravenes any provision of this Act commits an offence and is liable to— A person who carries on or is privy to the carrying on of any business under this Act under a company established contrary to this Act is liable to a fine of not less than one hundred currency points and not more than five hundred currency points or to imprisonment for a term of not less than three months and not more than six months or to both the fine and imprisonment. In the alternative to the punishment provided under subsection (1), a licence of a person convicted under that subsection shall be cancelled, and that person shall be disqualified from acquiring a licence for five years and thereafter shall not be issued a licence without the approval of the Minister . fails to take any reasonable steps to secure compliance with the requirements of this Act; makes any statement or gives any information which is false, in answer for information required under any provisions of this Act; is privy to the furnishing of any false information under this Act, a public or private admonition; a fine of not more than twenty five currency points; suspension or revocation of the licence . a private or public admonition; Where an officer of a company under this Act authorises the contravention of or contravenes any provision of this Act, he or she shall be personally liable to the penalty specified in relation to the contravention. An insurer shall not pay any commission or remuneration to any intermediary who is not licensed under this Act and an insurer who violates this section is liable to a fine of twenty percent of the premium received or the fine imposed under section (4) (b), whichever is higher. - 147 Verify source ↗
General provisions - Display of a licence
AI-assisted research summary: A licensee must display their licence prominently at the principal place of business where the public can access it, and must display a copy in each branch in Uganda; contravention attracts a fine not exceeding fifty currency points.
Section Display of a licence Section A licensee shall display his or her licence prominently at the principal place of business in a part to which the public can have access and shall display a copy of the licence in each branch of the business in Uganda. A person who contravenes this section is liable to a fine not exceeding fifty currency points. - 148 Verify source ↗
General provisions - Publication of details relating to licensees
AI-assisted research summary: The Authority must publish the details of licensees and the scope of licences granted under this Act.
Section Publication of details relating to licensees Section The Authority shall publish in an appropriate manner and form the details of licensees and the scope of the licences granted under this Act. - 149 Verify source ↗
General provisions - Consultation of foreign supervisors in relation to applicants for a licence
AI-assisted research summary: The Authority must not grant a licence to an applicant established outside Uganda unless it consults that applicant's supervisor in the applicant's country.
Section Consultation of foreign supervisors in relation to applicants for a licence Section The Authority shall not grant a licence to an applicant for a licence established outside Uganda unless the Authority consults the supervisor of the applicant in the country where the applicant is established. - 150 Verify source ↗
General provisions - Compliance with anti money laundering and combating of terrorism financing
AI-assisted research summary: Licensees must comply with the Anti-Money Laundering Act, 2013 and laws on combating financing of terrorism.
Section Compliance with anti money laundering and combating of terrorism financing Section Every licensee shall comply with the provisions of the Anti-Money Laundering Act, 2013 and the laws relating to combating financing of terrorism. - 151 Verify source ↗
General provisions - Regulations
AI-assisted research summary: The Minister must, in consultation with the Authority, make regulations by statutory instrument to carry into effect the provisions of the Act.
Section Regulations Section The Minister shall, in consultation with the Authority , by statutory instrument make regulations for the better carrying into effect the provisions of this Act. - 152 Verify source ↗
General provisions - Amendment of Schedules
AI-assisted research summary: The Minister may, with the approval of Cabinet, by statutory instrument amend the Schedules to this Act.
Section Amendment of Schedules Section The Minister may, with the approval of Cabinet, by statutory instrument amend the Schedules to this Act. - 153 Verify source ↗
General provisions - Repeal and saving
AI-assisted research summary: Repeals the Insurance Act, Cap. 213, and keeps existing statutory instruments made under that Act in force until revoked under this Act.
Section Repeal and saving Section The Insurance Act, Cap. 213 is repealed. Notwithstanding subsection (1), any statutory instrument made under the Insurance Act, Cap. 213 and is in force immediately before the commencement of this Act, shall remain in force until revoked under this Act. - 154 Verify source ↗
General provisions - Transfer of assets and liabilities
AI-assisted research summary: All assets, rights and liabilities relating to insurance services that the Insurance Regulatory Authority of Uganda held before this Act's commencement shall vest in the Authority.
Section Transfer of assets and liabilities Section All assets, rights and liabilities relating to insurance services to which the Insurance Regulatory Authority of Uganda was entitled to or subject to, before the commencement of this Act, shall vest in the Authority . - 155 Verify source ↗
General provisions - Transfer of service contracts
AI-assisted research summary: Employees of the Authority whose services are transferred shall transfer to the Authority on similar or better terms.
Section Transfer of service contracts Section Employees of the Authority immediately before the commencement of this Act whose services are transferred to the Authority shall transfer to the Authority on similar or better terms than those enjoyed by those employees before the transfer. - 156 Verify source ↗
General provisions - Pension fund and retired and redundant employees
AI-assisted research summary: The Authority must continue to pay pensions to former employees receiving retirement benefits at the commencement of this Act, and must pay calculated retirement benefits and pension due to employees who become redundant because of implementation of section 154.
Section Pension fund and retired and redundant employees Section All former employees of the Authority who at the commencement of this Act are receiving retirement benefits and pensions from the Authority shall continue to be paid by the Authority . All employees of the Authority who become redundant as a result of the implementation of section 154 shall he paid the calculated and ascertained retirement benefits and pension due to them under the repealed Act. - 157 Verify source ↗
General provisions - Agreements and licences by the Authority
AI-assisted research summary: Recognises as valid licences issued by the Authority and agreements entered into by the Authority that existed before the commencement of this Act.
Section Agreements and licences by the Authority Section All valid— licences issued by the Authority before the commencement of this Act; and agreements entered into by the Authority before the commencement of this Act, - 158 Verify source ↗
General provisions - Pending court proceedings or orders of court
AI-assisted research summary: Pending court proceedings connected to the Authority and its vested assets or functions remain enforceable by or against the Authority as they were immediately before commencement of this Act.
Section Pending court proceedings or orders of court Section Any pending court proceedings, court actions, judgments or court orders which were enforceable by or against the Authority immediately before the commencement of this Act, and are connected with the assets vested in the Authority or the functions of the Authority, shall be enforceable by or against the Authority as they would have been enforced by or against the Authority, immediately before the commencement of this Act. Any pending court proceedings, judgment or order against the Authority arising out of matters connected with Authority, shall continue against the Authority until they are disposed of or satisfied.
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Insurance Act, 2017
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