Uganda’s Insurance tribunal registers 51 complaints since inception in 2022

KAMPALA - The Insurance Appeals Tribunal (IAT) has reported that its rulings over the past three years are already shaping reforms and practices in Uganda’s insurance industry, fostering greater transparency and building public trust in the sector.

Speaking during the Insurance Regulatory Authority CEO’s Breakfast Forum in Kampala last week, Tribunal Chairperson Rita Namakiika Nangono said the IAT had received 51 appeals since its establishment in 2022, 25 of which were filed this year alone.

Out of these, she said, 41 have been concluded and decisions delivered, while 10 remain at various stages of hearing.

The majority of appeals arose from disputes involving group life, motor comprehensive and medical insurance policies.

Nangono explained that most of the cases heard by the Tribunal stemmed from decisions of the Insurance Regulatory Authority’s (IRA) Complaints Bureau, with only a few related to regulatory and supervisory decisions such as investigations, penalties, or revocations of licenses.

She noted that the Tribunal’s role is purely appellate, with the power to uphold, reverse, or vary the Authority’s decisions or remit matters for reconsideration with guidance.

"Key issues identified in the appeals process have provided critical lessons for insurers, and many policy documents presented to the Tribunal contained vague or ambiguous clauses, leaving policies illusory and almost unenforceable," she added.

She also highlighted the lack of clarity in claims processes, with some insurers failing to guide policyholders on how and when to file claims, a situation that could amount to bad faith on the part of the insurer.

Additionally, she noted that lengthy claims processes, especially for complex cases involving cross-border investigations, were a major source of frustration for clients and urged insurers to establish clear timelines to avoid disputes.

The Tribunal has also raised concerns about poor customer service, with some insurers reportedly ignoring emails or refusing to engage with clients, further eroding public trust in insurance.

Nangono emphasised that insurers are expected to investigate claims with the intent to pay, not to look for reasons to avoid settlement. In some cases, inadequate claims support and lack of proper loss assessment reporting have fueled disputes.

Reports from loss adjusters were sometimes inconclusive, missing critical evidence such as photographs, or were prepared by assessors without the necessary expertise, especially in complex claims like fire incidents.

The Tribunal recommended that where two assessors are appointed, there should be a reconciliation meeting to harmonise findings.

It also called for clear guidance on when to use in-house versus external assessors and procedures for resolving conflicting reports. 

Disclosure of assessment reports to policyholders was highlighted as essential for transparency and accountability.

These findings, Nangono said, should inform industry reforms aimed at improving claims handling, enhancing policy wording, and ensuring regulatory compliance. 

By acting on the Tribunal’s recommendations, insurers can build consumer confidence, reduce disputes, and promote faster, more efficient resolution of claims.

“The Tribunal’s work provides independent, data-driven insights into industry trends and issues, which can guide better policies and regulatory decisions,” she stated.

Reforms inspired by Tribunal findings are expected to benefit both policyholders and the industry. 

These include improved consumer protection measures, stronger policyholder rights, and a more responsive regulatory framework. By addressing current weaknesses, the sector can enhance its reputation and demonstrate its commitment to accountability and excellence.

Insurance Regulatory Authority (IRA) CEO Ibrahim Kaddunabbi Lubega welcomed the Tribunal’s contribution to improving industry practices.

He stressed that the IRA had issued guidance requiring insurers to share assessors’ reports with policyholders, warning that the Authority would intervene in cases where this was not done.

“Insurers must find every reason to pay a claim, not reasons to deny it,” he said. 
Kaddunabbi also expressed satisfaction that only 51 complaints have been escalated to the Tribunal since 2022, a significantly small number compared to the 198 complaints lodged at the IRA’s Complaints Bureau in just one year (2024/2025).

The Tribunal’s work is steadily influencing how insurers operate, pushing them toward fairer practices, better communication, and greater transparency.

As the industry adopts these reforms, experts say, policyholders can expect more trust, accountability, and efficiency in their interactions with insurers, signalling a positive shift in Uganda’s insurance landscape.