Following the amendment of the Financial Institutions Act, the Insurance Regulatory Authority (IRA) has today handed out a bancassurance licence to Diamond Trust Bank (DTB) , to offer insurance services to its customers and the public.
Speaking at the handover event held at IRA headquarters at Legacy House, Nakasero – Kampala, DTB CEO Varghese Thambi said that this service will help the bank to penetrate the market.
“We have 35 branches across the country and with bancassurance service, we will be able to penetrate the market,” Mr. Thambi said.
Under section 28 (1) and 72 (1) of the Insurance Act (Cap 213), the Insurance Regulatory Authority of Uganda has granted licenses to 95 players to transact insurance business in the year 2018.
And out of these, only six are banks and these include the Bank of Africa, Barclays Bank, Diamond Trust Bank, Finance Trust Bank, NC Bank and Stanbic Bank.
The others licensed include 28 insurance companies (19 non-life firms and 9 firms for life assurance business); one re-insurer, five Health Membership Organizations (HMOs), 32 insurance brokers, one re-insurance broker and 22 Loss Assessors/Adjusters.
The Authority renews licences of all insurance players annually as a way of scrutinizing their viability and to protect the interests of policyholders and beneficiaries.
According to IRA, the public should deal with only those licensed to transact insurance business. The IRA also says all licensed persons are by law required to display their licenses prominently at their business premises and in each of their branch offices in Uganda.
“In case of any dissatisfaction with any insurance company or insurance service provider, lodge a complaint with the Authority’s Complaints Bureau which seeks to protect insurance consumers,” Ibrahim Kaddunabbi Ibrahim Lubega, Chief executive officer IRA, advised.