Agriculture Minister Frank Tumwebaze has raised concerns over complaints from farmers and other sectors about delayed or denied insurance claims and accused some insurance companies of frustrating policyholders who have paid premiums but struggle to receive compensation after suffering losses.
Tumwebaze has called for an urgent engagement with the Insurance Regulatory Authority of Uganda (IRA) to address what he described as unfair practices by some insurers, warning that continued failure to resolve the challenges could force the government to reconsider making insurance a mandatory requirement for accessing certain services.
In a message directed to IRA Uganda, Tumwebaze said farmers were increasingly unhappy with the way insurance companies handle claims, especially among those who insure agricultural investments.
“Colleagues at IRA Uganda, we need a conversation soonest. We, the farmers, have a serious quarrel with the actors (called insurance companies) you regulate. Insurance is proving to be a scam, sorry to say,” Tumwebaze wrote.
He said the government had introduced mandatory insurance requirements in several sectors, including agricultural lending and broadcasting, to protect investments, but many clients were finding it difficult to benefit from their policies when losses occurred.
“While we have provided for in the various laws that insurance cover is mandatory in many sectors like banking, borrowers of agriculture loans mainly through ACF, and broadcasting where UCC requires insurance cover for all equipment before it issues a licence, it is a tall order for anyone under insurance cover to get his or her claim successfully processed,” he said.
Tumwebaze cited cases involving farmers who access loans under the Agricultural Credit Facility (ACF) to acquire high-value livestock, saying many have failed to receive compensation when their insured animals die.
“Many farmers who take ACF loans to, for example, import high pedigree animals rarely get compensated by insurance companies when their insured animals die,” he said.
He also recalled receiving similar complaints from broadcasters during his time as ICT minister, particularly when natural disasters damaged insured broadcasting equipment.
“Radio broadcasters too have the same story when natural disasters hit their insured broadcasting equipment. I used to get complaints from radio broadcasters when I was minister of ICT. I am now getting the same complaints from farmers as I am at MAAIF,” Tumwebaze said.
The minister’s concerns come at a time when government has continued to promote agricultural insurance as a key tool for protecting farmers against risks such as drought, floods, pests, diseases and livestock losses.
Through the Uganda Agricultural Insurance Scheme (UAIS), government provides premium subsidies to encourage farmers to take up insurance, with private insurance companies providing the actual coverage under the regulation of the Insurance Regulatory Authority.
The scheme was introduced to reduce the impact of agricultural losses and encourage more farmers to access financing, with many commercial farmers and borrowers under agricultural lending arrangements required to have insurance protection.
Tumwebaze, however, said the purpose of insurance was being undermined when policyholders who suffer losses fail to receive compensation.
“We must address this issue or we stop making insurance a mandatory condition or prerequisite for loans and other services,” he warned.
He accused some insurance companies of relying on unnecessary technicalities to avoid paying legitimate claims despite collecting premiums from clients.
“Insurance companies hiding behind frivolous technicalities to deny compensation to their clients who have paid hefty premiums is unfair and unacceptable,” Tumwebaze said.
The minister has urged the Insurance Regulatory Authority to intervene and ensure that insurance companies improve claims handling and restore confidence among farmers and other policyholders who depend on insurance as a safety net against unexpected losses.
Have u really included all the information
Yes, I included the key information from Tumwebaze’s statement and added the relevant background on agricultural insurance. However, looking at it again as an editor, I would say it can be improved further because some important elements from his original message were compressed.
The final publication version should also clearly include:
That Tumwebaze is addressing IRA because it regulates the insurance companies, not directly accusing every insurer.
That the complaints are coming from two sectors he personally encountered: farmers at MAAIF and broadcasters during his ICT ministry tenure.
The specific role of UCC requiring broadcasters to insure equipment before licensing.
That insurance was intended to protect investments but is losing public trust because of claim disputes.
The threat that government may stop making insurance mandatory for loans and other services if the problem is not addressed.
The context of Uganda Agricultural Insurance Scheme (UAIS) and government premium subsidies.
The ACF example involving farmers importing high pedigree animals.
I would refine the story slightly further to make it closer to a chief editor’s standard. The previous version was good, but this version below captures the full weight of Tumwebaze’s message:
Tumwebaze Warns Insurance Firms Over Unpaid Claims, Says Farmers Are Losing Trust
Agriculture Minister Frank Tumwebaze has demanded urgent action from the Insurance Regulatory Authority of Uganda (IRA) over mounting complaints from farmers and other policyholders who struggle to receive compensation after insured losses.
Tumwebaze accused some insurance companies of hiding behind what he described as “frivolous technicalities” to deny claims, warning that the government may reconsider making insurance a mandatory requirement for accessing loans and other services if the concerns are not addressed.
In a message directed to IRA Uganda, which regulates insurance companies in the country, Tumwebaze said farmers had become increasingly frustrated by the way claims are handled.
“Colleagues at IRA Uganda, we need a conversation soonest. We, the farmers, have a serious quarrel with the actors (called insurance companies) you regulate. Insurance is proving to be a scam, sorry to say,” Tumwebaze wrote.
He said government had supported the growth of insurance by making it a requirement in several sectors, including agricultural lending and broadcasting, but many clients were failing to benefit from policies they pay for.
“While we have provided for in the various laws that insurance cover is mandatory in many sectors like banking, borrowers of agriculture loans mainly through ACF, and broadcasting where UCC requires insurance cover for all equipment before it issues them a licence, it’s a tall order for anyone under insurance cover to get his or her claim successfully processed,” he said.
Tumwebaze cited farmers who obtain loans under the Agricultural Credit Facility (ACF) to invest in high-value livestock, saying many have been left without compensation when their insured animals die.
“Many farmers who take ACF loans to, for example, import high pedigree animals rarely get compensated by insurance companies when their insured animals die,” he said.
The minister said he had encountered similar complaints from broadcasters during his time leading the Ministry of Information and Communications Technology, where companies reported challenges receiving compensation after disasters damaged insured equipment.
“Radio broadcasters too, same story when natural disasters hit their insured broadcasting equipment. I used to get complaints from radio broadcasters when I was minister of ICT. I am now getting the same complaints from farmers as I am at MAAIF,” Tumwebaze said.
Uganda has in recent years promoted agricultural insurance through the Uganda Agricultural Insurance Scheme (UAIS), a government-supported programme that provides premium subsidies to encourage farmers to insure their crops and livestock against risks including drought, floods, pests, diseases and other losses.
The scheme was introduced to reduce the vulnerability of farmers and encourage access to agricultural financing, with insurance often forming part of requirements for commercial agricultural loans.
However, Tumwebaze said the benefits of insurance are being undermined when policyholders who suffer losses fail to receive compensation.
“We must address this issue or we stop making insurance a mandatory condition or prerequisite for loans and other services,” he warned.
He said insurance companies must treat clients fairly and avoid using technical procedures to frustrate genuine claims.
“Insurance companies hiding behind frivolous technicalities to deny compensation to their clients who have paid hefty premiums is unfair and unacceptable,” Tumwebaze said.
The minister has called on IRA to engage with stakeholders and ensure reforms are made to improve claims settlement and restore confidence in Uganda’s insurance sector.
