Insurance cushions families as Ugandan migrant workers face risks abroad
Insurance protection is also relevant to Ugandans travelling abroad for education, business and other purposes, where medical emergencies and accidents can create unexpected costs.
Insurance cushions families as Ugandan migrant workers face risks abroad. (Courtesy)
______________
A sh30 million insurance payout to the family of a Ugandan who died in Dubai has highlighted the financial risks migrant workers face and the importance of insurance protection.
Sadiq Bakole, 30, from Arua, travelled to the United Arab Emirates in November 2025 in search of employment but died in December 2025, leaving his family to cope with the loss.
His family received sh30 million in compensation under the Uganda Migrant Workers’ Insurance Scheme (UMWIS), offered by NIC Life Assurance in partnership with Spades Insurance Brokers.
Bakole had enrolled in the scheme before travelling, allowing his family to claim the death benefit. The claim was handed over to the family at NIC Life Assurance headquarters in Kampala on recently.
The case illustrates how insurance can provide financial relief when migrant workers die or suffer other insured events far from home.
The financial risks of working abroad
Ministry of Gender, Labour and Social Development data indicates that 317,555 Ugandans formally secured employment in the Middle East in the 10 years to December 2024. Women accounted for approximately 84% of the formally externalised workers.
While overseas employment offers opportunities to earn money and support families, workers also face risks including illness, accidents, permanent disability and death.
Families may also struggle to meet the cost of bringing home the remains of a relative who dies abroad.
“When someone leaves Uganda to work abroad, it is usually because they want to improve the lives of the people they leave behind. Unfortunately, life is unpredictable. Insurance ensures that when the unexpected happens, the family does not have to face both the emotional loss of a loved one and an overwhelming financial burden at the same time.”
Lubandi said repatriating the body of a Ugandan who dies abroad can cost sh15m to sh20m or more, placing a significant burden on families.
“Not many families can suddenly raise fifteen or twenty million shillings to bring home the body of a loved one. The Migrant Workers' Insurance Scheme addresses that risk. For approximately sh10,000 per month, should the worst happen, there is protection to facilitate repatriation and enable the family to give their loved one a dignified farewell.”
Besides repatriation support, the scheme provides a sh30m death benefit to eligible beneficiaries. It also covers specified risks, including injuries, permanent disability and critical illness, subject to the policy terms. Eligible workers who declare their children during registration may also access an education-related benefit.
“The sh30 million is not intended to put a value on someone's life. No amount of money can replace a husband, wife, son, daughter, brother or sister. It is there to help the family adjust financially because, in many cases, the person who has passed away was supporting parents, children and other dependants.”
Insurance claims and benefits
Chris Ssengendo, the managing director of Spades Insurance Brokers, said Bakole's case demonstrated the importance of having insurance before travelling.
“When Sadiq enrolled in the scheme, neither he nor his family expected that they would need to make a claim so soon. Unfortunately, he passed away. At that point, NIC Life as the insurer and Spades Insurance Brokers had a responsibility to honour the protection that had been promised to him.”
Bakole's elder brother, Sadiq Bakit, said the family had hoped his trip would create better economic opportunities.
Bakole had previously worked in South Sudan for about five years before raising money to travel to Dubai.
The family later learnt that he had taken out insurance before travelling.
According to NIC Life and its partners, approximately 4,500 Ugandan migrant workers have enrolled in the scheme since its introduction two years ago. More than UGX 276 million has been paid in claims and benefits over the same period.
Calls for wider insurance coverage
NIC Life is urging government, recruitment agencies, insurers and migrant-worker organisations to promote insurance coverage for Ugandans seeking employment abroad.
Lubandi said the company supported measures to make insurance a standard part of the formal labour externalisation process.
“Our appeal is for every Ugandan leaving the country for work to have appropriate insurance protection. The cost of protection is relatively small when compared with the financial consequences that can arise when an emergency occurs thousands of kilometres away from home.”
He also called for consideration of measures that would make appropriate migrant-worker insurance effectively mandatory within the formal labour externalisation process.
Insurance protection is also relevant to Ugandans travelling abroad for education, business and other purposes, where medical emergencies and accidents can create unexpected costs.
“We insure our cars, homes and businesses because we understand that unexpected events happen. The same thinking should apply when we travel or move abroad. Protecting yourself also means protecting the people who depend on you,” Lubandi said.