New Insurance Rates Out
The Uganda Insurance Commission (UIC) has approved the new proposed commissions and premiums presented by the industry players.
By Charles Bwogi
The Uganda Insurance Commission (UIC) has approved the new proposed commissions and premiums presented by the industry players.
“This will help put some unhealthy competition in the industry under control, plus avoiding undercutting on rates due to competition,†David Ssebirumbi, the administrative secretary at the Uganda Insurers Association said.
The new tariff rates set the minimum premium and maximum commission rates to be paid by insurance companies to their clients and brokers respectively.
Some of the new commission rates approved by UIC as of February 2004 but yet to be implemented are 20% on customs bonds, 10% on motor third party, 20% on personal accident, 22% on car and 20% on workers compensation among others.
For premium rates, a 2.5% premium rate has been approved on burglary (burglary on first loss limit) and this should be 1% and higher.
Performance bonds have been put at 4.4%, customs bond at 1%, and security bond at 2.2%.
In the motor comprehensive section, private cars (under 1100cc) are at 5%, while cars under 2200 cc at 5.25% and 6% on those up to 3000cc.
The premium rate for commuter taxis (PSVs) up to 2000cc is at 10%, taxis of over 2000cc at 15% and public buses or coaches have been set at 15%.
In the group personal accidents section, Class1 is at 1%, Class2 at 1.5%, Class 3 at 2%, and Class4 at 3%
Ssebirumbi said that setting specific minimum premium and maximum commission rates on specific insurance policies is important in a growing and competitive market like Uganda’s.
Ends
The Uganda Insurance Commission (UIC) has approved the new proposed commissions and premiums presented by the industry players.
“This will help put some unhealthy competition in the industry under control, plus avoiding undercutting on rates due to competition,†David Ssebirumbi, the administrative secretary at the Uganda Insurers Association said.
The new tariff rates set the minimum premium and maximum commission rates to be paid by insurance companies to their clients and brokers respectively.
Some of the new commission rates approved by UIC as of February 2004 but yet to be implemented are 20% on customs bonds, 10% on motor third party, 20% on personal accident, 22% on car and 20% on workers compensation among others.
For premium rates, a 2.5% premium rate has been approved on burglary (burglary on first loss limit) and this should be 1% and higher.
Performance bonds have been put at 4.4%, customs bond at 1%, and security bond at 2.2%.
In the motor comprehensive section, private cars (under 1100cc) are at 5%, while cars under 2200 cc at 5.25% and 6% on those up to 3000cc.
The premium rate for commuter taxis (PSVs) up to 2000cc is at 10%, taxis of over 2000cc at 15% and public buses or coaches have been set at 15%.
In the group personal accidents section, Class1 is at 1%, Class2 at 1.5%, Class 3 at 2%, and Class4 at 3%
Ssebirumbi said that setting specific minimum premium and maximum commission rates on specific insurance policies is important in a growing and competitive market like Uganda’s.
Ends