By David Ssempijja
The Insurance Regulatory Authority (IRA) has strongly warned the newly instituted Insurance Institute of Uganda (IIU) Board of Trustees against mismanaging funds accruing from the insurance training levy.
According to Kaddunabbi Lubega, proper management of funds is among the key areas IRA, the insurance regulator will focus on as it monitors the performance of IIU in executing its development mandate.
“You will personally be liable for any breach of your fiduciary duty or losses suffered by the Fund as a result of negligence and you may be sued by any of the stakeholders, so please take care” he warned while speaking during the inauguration of the board at the Uganda Insurers Association, Kololo.
The board members are; Justice Lilian Tibatemwa-Ekirikubinza, David G. Opiokello, Haji Twaha Kaawaase, David F.K Mpanga and Lucille Isingoma.
The biggest fraction of the institute’s funding will be sourced from the mandatory insurance training levy, a 0.5% of every policy local insurance firm sell; it will be used to develop the insurance industry by inter alia, training personnel to narrow the human resource gap in terms of numbers and quality.
The Insurance Act (Cap 213) Laws of Uganda 2000 provided for the insurance institute (now IIU) and the provision was made for the policy holders to contribute, through the insurers, a training levy to constitute a fund that the institute would use to fulfill its key objectives.
“The Authority was, in this respect instructed by the ministry of finance to ensure that the funds are well utilised; IRA will request IIU to fully account for the funds and must in turn report the progress to all stakeholders,” he said.
IIU future plans
According to IIU chairman Geoffrey Kihuguru, plans are underway to create a strong pool of local and international lecturers and tutors to effect the newly developed curriculum that will lead to more awards of diplomas and certificates,” he said.
“We also plan to strengthen operations of the institute through equipping it with modern facilities matching internationally acceptable training standards,” he noted
Kihuguru pointed that the institute would establish a modern resource centre and secure an independent home detached from the Uganda Insurers Association at Kololo, currently serving as the institute’s host; all plans geared towards growing the sector.
The sector recorded an impressive performance posting growth of 23.52% for the period ended Dec 2011, premiums rose to sh294.44b in 2011 compared to sh239.99b recorded in 2010.
However, the industry commands a 0.65% penetration rate, lagging behind other East African states like; Rwanda at 2.3%, Kenya’s penetration is 2.76%, and Tanzania is at 2.2%.