Microcare insurance not licensed to operate â€" Insurance commission
Mar 31, 2009
The Uganda Insurance Commission has insisted that Microcare Insurance Company is not licensed to operate in 2009.
By Barbara Among
The Uganda Insurance Commission has insisted that Microcare Insurance Company is not licensed to operate in 2009.
“The public is reminded to deal with only licensed insurers,†a statement from the commission read.
“Microcare submitted an application for renewal of their licence on October 30, 2008 however, Microcare Insurance Company is not licensed for the year 2009 due to issues regarding their solvency status,†read the statement.
Solvency is the ability of an entity to pay its debts with available cash.
The commission however refused to clarify further saying the case had been taken to court.
The commission said it had granted Microcare 30 days, up to March 30, within which to fulfil the licensing requirements and be considered for licensing or be stopped from transacting any insurance business.
However, the High Court last week restrained the commission from stopping Microcare until an application for judicial review was made.
The High court order follows an application by Microcare blocking the commission from closing it.
Meanwhile, health service providers have refuted claims by Microcare that they have been inflating bills.
Microcare in a press statement on Monday said it did not owe health providers any money, arguing that the disgruntled companies had been inflating prices above what was agreed upon.
According to the health service providers, the hospitals or clinics providing services to Microcare clients were closely supervised by a person employed by the insurance company.
“At every health centre there is a Microcare desk. The billing system is computerised, it rejects any price above the one set in the system†said Richard Lumu, a lawyer for the health service providers.
The contract also provided that Microcare could reject the bill within 15 to 30 days of invoicing, which the health providers said Microcare has never objected to.
The Uganda Insurance Commission has insisted that Microcare Insurance Company is not licensed to operate in 2009.
“The public is reminded to deal with only licensed insurers,†a statement from the commission read.
“Microcare submitted an application for renewal of their licence on October 30, 2008 however, Microcare Insurance Company is not licensed for the year 2009 due to issues regarding their solvency status,†read the statement.
Solvency is the ability of an entity to pay its debts with available cash.
The commission however refused to clarify further saying the case had been taken to court.
The commission said it had granted Microcare 30 days, up to March 30, within which to fulfil the licensing requirements and be considered for licensing or be stopped from transacting any insurance business.
However, the High Court last week restrained the commission from stopping Microcare until an application for judicial review was made.
The High court order follows an application by Microcare blocking the commission from closing it.
Meanwhile, health service providers have refuted claims by Microcare that they have been inflating bills.
Microcare in a press statement on Monday said it did not owe health providers any money, arguing that the disgruntled companies had been inflating prices above what was agreed upon.
According to the health service providers, the hospitals or clinics providing services to Microcare clients were closely supervised by a person employed by the insurance company.
“At every health centre there is a Microcare desk. The billing system is computerised, it rejects any price above the one set in the system†said Richard Lumu, a lawyer for the health service providers.
The contract also provided that Microcare could reject the bill within 15 to 30 days of invoicing, which the health providers said Microcare has never objected to.