\u00a0<\/p>\n
\n
INSURANCE ACT.<\/p>\n
ARRANGEMENT OF SECTIONS.<\/b><\/p>\n
\u00a0\u00a0\u00a0Section<\/p>\n
PART I
PRELIMINARY.<\/p>\n
\u00a0\u00a0\u00a01.\u00a0\u00a0\u00a0Application. <\/a><\/p>\n \u00a0\u00a0\u00a02.\u00a0\u00a0\u00a0Interpretation. <\/a><\/p>\n \u00a0\u00a0\u00a03.\u00a0\u00a0\u00a0Use of the word “insurance” and persons to carry on insurance business. <\/a><\/p>\n \u00a0\u00a0\u00a04.\u00a0\u00a0\u00a0Insurers to be bodies corporate. <\/a><\/p>\n \u00a0\u00a0\u00a05.\u00a0\u00a0\u00a0Classification of insurance business. <\/a><\/p>\n \u00a0\u00a0\u00a06.\u00a0\u00a0\u00a0Minimum capital requirements. <\/a><\/p>\n \u00a0\u00a0\u00a07.\u00a0\u00a0\u00a0Security deposits. <\/a><\/p>\n \u00a0\u00a0\u00a08.\u00a0\u00a0\u00a0Use of the security deposit. <\/a><\/p>\n \u00a0\u00a0\u00a09.\u00a0\u00a0\u00a0Formation of mutual insurance companies. <\/a><\/p>\n \u00a0\u00a0\u00a010.\u00a0\u00a0\u00a0Capital requirements of mutual insurance companies. <\/a><\/p>\n \u00a0\u00a0\u00a011.\u00a0\u00a0\u00a0Board of directors of an insurance company. <\/a><\/p>\n \u00a0\u00a0\u00a012.\u00a0\u00a0\u00a0Disqualification of an officer of an insurance company. <\/a><\/p>\n \u00a0\u00a0\u00a013.\u00a0\u00a0\u00a0Head office and branches. <\/a><\/p>\n PART II \u00a0\u00a0\u00a014.\u00a0\u00a0\u00a0Establishment of the Authority. <\/a><\/p>\n \u00a0\u00a0\u00a015.\u00a0\u00a0\u00a0Objects and functions of the Authority. <\/a><\/p>\n \u00a0\u00a0\u00a016.\u00a0\u00a0\u00a0Minister to give directions. <\/a><\/p>\n \u00a0\u00a0\u00a017.\u00a0\u00a0\u00a0Composition of the Authority. <\/a><\/p>\n \u00a0\u00a0\u00a018.\u00a0\u00a0\u00a0Provision relating to the chairperson. <\/a><\/p>\n \u00a0\u00a0\u00a019.\u00a0\u00a0\u00a0Meetings of the Authority. <\/a><\/p>\n \u00a0\u00a0\u00a020.\u00a0\u00a0\u00a0Committees of the Authority. <\/a><\/p>\n Staff of the Authority.<\/i><\/p>\n \u00a0\u00a0\u00a021.\u00a0\u00a0\u00a0The Chief Executive Officer. <\/a><\/p>\n \u00a0\u00a0\u00a022.\u00a0\u00a0\u00a0Secretary to the Authority. <\/a><\/p>\n \u00a0\u00a0\u00a023.\u00a0\u00a0\u00a0Other staff. <\/a><\/p>\n Financial provisions of the Authority.<\/i><\/p>\n \u00a0\u00a0\u00a024.\u00a0\u00a0\u00a0Funds of the Authority. <\/a><\/p>\n \u00a0\u00a0\u00a025.\u00a0\u00a0\u00a0Credit facilities and borrowing powers of the Authority. <\/a><\/p>\n \u00a0\u00a0\u00a026.\u00a0\u00a0\u00a0Accounts and audit of the Authority. <\/a><\/p>\n \u00a0\u00a0\u00a027.\u00a0\u00a0\u00a0Annual reports by the Authority. <\/a><\/p>\n PART III \u00a0\u00a0\u00a028.\u00a0\u00a0\u00a0Licensing of insurance and reinsurance companies. <\/a><\/p>\n \u00a0\u00a0\u00a029.\u00a0\u00a0\u00a0Application for a licence. <\/a><\/p>\n \u00a0\u00a0\u00a030.\u00a0\u00a0\u00a0Factors to be considered in an application. <\/a><\/p>\n \u00a0\u00a0\u00a031.\u00a0\u00a0\u00a0Processing of applications. <\/a><\/p>\n \u00a0\u00a0\u00a032.\u00a0\u00a0\u00a0Granting of a licence. <\/a><\/p>\n \u00a0\u00a0\u00a033.\u00a0\u00a0\u00a0Suspension and revocation of a licence. <\/a><\/p>\n \u00a0\u00a0\u00a033A.\u00a0\u00a0\u00a0Licensing of health insurance organisations and health membership organisations. <\/a><\/p>\n PART IV \u00a0\u00a0\u00a034.\u00a0\u00a0\u00a0Credit on premiums. <\/a><\/p>\n \u00a0\u00a0\u00a035.\u00a0\u00a0\u00a0Approval of policy format forms, etc. <\/a><\/p>\n \u00a0\u00a0\u00a036.\u00a0\u00a0\u00a0Alteration of approved premium rates without approval. <\/a><\/p>\n \u00a0\u00a0\u00a037.\u00a0\u00a0\u00a0Authority payable to licensed intermediaries. <\/a><\/p>\n \u00a0\u00a0\u00a038.\u00a0\u00a0\u00a0Modification of memorandum and articles of association. <\/a><\/p>\n \u00a0\u00a0\u00a039.\u00a0\u00a0\u00a0Records to be kept in English. <\/a><\/p>\n \u00a0\u00a0\u00a040.\u00a0\u00a0\u00a0Prohibition of misleading advertisements. <\/a><\/p>\n \u00a0\u00a0\u00a041.\u00a0\u00a0\u00a0[Repealed]. <\/a><\/p>\n \u00a0\u00a0\u00a042.\u00a0\u00a0\u00a0Restriction on loans to officers and directors. <\/a><\/p>\n \u00a0\u00a0\u00a043.\u00a0\u00a0\u00a0Prohibition of loans to associate companies. <\/a><\/p>\n \u00a0\u00a0\u00a044.\u00a0\u00a0\u00a0Margin of solvency. <\/a><\/p>\n \u00a0\u00a0\u00a045.\u00a0\u00a0\u00a0Statement by insurer. <\/a><\/p>\n \u00a0\u00a0\u00a046.\u00a0\u00a0\u00a0Separation of insurance funds. <\/a><\/p>\n \u00a0\u00a0\u00a047.\u00a0\u00a0\u00a0Insurance reserves. <\/a><\/p>\n \u00a0\u00a0\u00a048.\u00a0\u00a0\u00a0Investments. <\/a><\/p>\n \u00a0\u00a0\u00a049.\u00a0\u00a0\u00a0Accounts, etc. to be furnished to the Authority. <\/a><\/p>\n \u00a0\u00a0\u00a050.\u00a0\u00a0\u00a0Amendment of accounts. <\/a><\/p>\n \u00a0\u00a0\u00a051.\u00a0\u00a0\u00a0Auditing of accounts and auditors. <\/a><\/p>\n \u00a0\u00a0\u00a052.\u00a0\u00a0\u00a0Information to be furnished by an insurer. <\/a><\/p>\n \u00a0\u00a0\u00a053.\u00a0\u00a0\u00a0Statement and exhibit of life policies. <\/a><\/p>\n \u00a0\u00a0\u00a054.\u00a0\u00a0\u00a0Appointment of actuary by an insurer. <\/a><\/p>\n \u00a0\u00a0\u00a055.\u00a0\u00a0\u00a0Actuarial investigation and report. <\/a><\/p>\n \u00a0\u00a0\u00a056.\u00a0\u00a0\u00a0Authority to inspect insurer. <\/a><\/p>\n PART V \u00a0\u00a0\u00a057.\u00a0\u00a0\u00a0Reinsurance. <\/a><\/p>\n \u00a0\u00a0\u00a058.\u00a0\u00a0\u00a0Modification in insurer’s net retention. <\/a><\/p>\n \u00a0\u00a0\u00a059.\u00a0\u00a0\u00a0Annual reinsurance report. <\/a><\/p>\n \u00a0\u00a0\u00a060.\u00a0\u00a0\u00a0Prohibition of contracts with certain reinsurance companies. <\/a><\/p>\n \u00a0\u00a0\u00a061.\u00a0\u00a0\u00a0Modifications where terms not favourable. <\/a><\/p>\n \u00a0\u00a0\u00a062.\u00a0\u00a0\u00a0Negotiations not to be in personal capacity. <\/a><\/p>\n \u00a0\u00a0\u00a063.\u00a0\u00a0\u00a0Foreign reinsurance representatives. <\/a><\/p>\n \u00a0\u00a0\u00a064.\u00a0\u00a0\u00a0Mandatory reinsurance placements with international and national organisations. <\/a><\/p>\n PART VI \u00a0\u00a0\u00a065.\u00a0\u00a0\u00a0Amalgamation and transfer of insurance business. <\/a><\/p>\n \u00a0\u00a0\u00a066.\u00a0\u00a0\u00a0Application for amalgamation or transfer. <\/a><\/p>\n \u00a0\u00a0\u00a067.\u00a0\u00a0\u00a0Notice of amalgamation or transfer. <\/a><\/p>\n \u00a0\u00a0\u00a068.\u00a0\u00a0\u00a0Conditions for approval of transfer. <\/a><\/p>\n \u00a0\u00a0\u00a069.\u00a0\u00a0\u00a0Decision of the Authority on amalgamation or transfer. <\/a><\/p>\n \u00a0\u00a0\u00a070.\u00a0\u00a0\u00a0Effect of approval of amalgamation or transfer. <\/a><\/p>\n PART VII \u00a0\u00a0\u00a071.\u00a0\u00a0\u00a0Winding up. <\/a><\/p>\n PART VIIA \u00a0\u00a0\u00a071A.\u00a0\u00a0\u00a0Policyholders’ Compensation Fund. <\/a><\/p>\n PART VIII \u00a0\u00a0\u00a072.\u00a0\u00a0\u00a0Brokers, agents, etc. to be licensed. <\/a><\/p>\n \u00a0\u00a0\u00a073.\u00a0\u00a0\u00a0Brokers to be bodies corporate. <\/a><\/p>\n \u00a0\u00a0\u00a074.\u00a0\u00a0\u00a0Application and qualifications for a licence. <\/a><\/p>\n \u00a0\u00a0\u00a075.\u00a0\u00a0\u00a0Disqualifications. <\/a><\/p>\n \u00a0\u00a0\u00a076.\u00a0\u00a0\u00a0Licence and renewal of a licence. <\/a><\/p>\n \u00a0\u00a0\u00a077.\u00a0\u00a0\u00a0Processing and granting of a licence. <\/a><\/p>\n \u00a0\u00a0\u00a078.\u00a0\u00a0\u00a0Revocation or suspension of an intermediary’s licence, etc. <\/a><\/p>\n \u00a0\u00a0\u00a079.\u00a0\u00a0\u00a0Insurance broker’s and loss adjuster’s paid-up capital. <\/a><\/p>\n \u00a0\u00a0\u00a080.\u00a0\u00a0\u00a0Persons not to act as agents. <\/a><\/p>\n \u00a0\u00a0\u00a081.\u00a0\u00a0\u00a0Agents and brokers not to engage in loss adjusting, etc. <\/a><\/p>\n \u00a0\u00a0\u00a082.\u00a0\u00a0\u00a0Intermediaries to deal with licensed companies. <\/a><\/p>\n \u00a0\u00a0\u00a082A.\u00a0\u00a0\u00a0Auditing of accounts and auditors. <\/a><\/p>\n \u00a0\u00a0\u00a083.\u00a0\u00a0\u00a0Annual reports and financial statements. <\/a><\/p>\n \u00a0\u00a0\u00a083A.\u00a0\u00a0\u00a0Authority to inspect insurance brokers, loss assessors and loss adjusters. <\/a><\/p>\n \u00a0\u00a0\u00a084.\u00a0\u00a0\u00a0Submission of statements to insurers. <\/a><\/p>\n \u00a0\u00a0\u00a085.\u00a0\u00a0\u00a0Records to be kept. <\/a><\/p>\n \u00a0\u00a0\u00a086.\u00a0\u00a0\u00a0Advertisement. <\/a><\/p>\n \u00a0\u00a0\u00a087.\u00a0\u00a0\u00a0Payment of premium. <\/a><\/p>\n \u00a0\u00a0\u00a088.\u00a0\u00a0\u00a0Insurance agent’s Authority. <\/a><\/p>\n \u00a0\u00a0\u00a089.\u00a0\u00a0\u00a0Loans to insurance agents. <\/a><\/p>\n \u00a0\u00a0\u00a090.\u00a0\u00a0\u00a0Portfolio transfer. <\/a><\/p>\n \u00a0\u00a0\u00a091.\u00a0\u00a0\u00a0Death of an agent. <\/a><\/p>\n \u00a0\u00a0\u00a092.\u00a0\u00a0\u00a0Direct relationship with an insurer. <\/a><\/p>\n PART VIIIA \u00a0\u00a0\u00a092A.\u00a0\u00a0\u00a0Insurance Appeals Tribunal. <\/a><\/p>\n \u00a0\u00a0\u00a092B.\u00a0\u00a0\u00a0Tribunal to review decisions of the Authority. <\/a><\/p>\n \u00a0\u00a0\u00a092C.\u00a0\u00a0\u00a0Decisions of the Tribunal. <\/a><\/p>\n \u00a0\u00a0\u00a092D.\u00a0\u00a0\u00a0Appeals to High Court from decisions of Tribunal. <\/a><\/p>\n \u00a0\u00a0\u00a092E.\u00a0\u00a0\u00a0Expenses of the Tribunal. <\/a><\/p>\n \u00a0\u00a0\u00a092F.\u00a0\u00a0\u00a0Regulations under this Part. <\/a><\/p>\n PART IX \u00a0\u00a0\u00a093.\u00a0\u00a0\u00a0Adjustment of losses occurring in contravention of the Act. <\/a><\/p>\n \u00a0\u00a0\u00a094.\u00a0\u00a0\u00a0Insurance Institute of Uganda. <\/a><\/p>\n \u00a0\u00a0\u00a094A.\u00a0\u00a0\u00a0Insurance training levy. <\/a><\/p>\n \u00a0\u00a0\u00a095.\u00a0\u00a0\u00a0Display of a licence. <\/a><\/p>\n \u00a0\u00a0\u00a096.\u00a0\u00a0\u00a0Insurable interest policies. <\/a><\/p>\n \u00a0\u00a0\u00a096A.\u00a0\u00a0\u00a0Protection from liability. <\/a><\/p>\n \u00a0\u00a0\u00a097.\u00a0\u00a0\u00a0Offences and penalties. <\/a><\/p>\n \u00a0\u00a0\u00a098.\u00a0\u00a0\u00a0Power to make regulations. <\/a><\/p>\n \u00a0<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Schedule 1\u00a0\u00a0\u00a0Currency point.<\/a><\/i><\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Schedule 2\u00a0\u00a0\u00a0<\/a><\/i>Meetings and seal of the Authority.<\/p>\n \u00a0<\/p>\n CHAPTER 213 Commencement<\/i>: 4 April, 1996.<\/p>\n \u00a0\u00a0\u00a0An Act to amend and consolidate the law relating to insurance and to regulate the business of insurance, and for purposes incidental thereto and connected therewith.<\/b><\/p>\n \u00a0<\/p>\n PART I \u00a0<\/p>\n <\/a>1.\u00a0\u00a0\u00a0Application.<\/p>\n \u00a0\u00a0\u00a0This Act shall apply to all insurance and reinsurance companies, insurance and reinsurance broking companies, insurance and reinsurance brokers and agents, loss adjusters and assessors, risk managers and representatives of foreign companies engaged in such activities.<\/p>\n \u00a0<\/p>\n <\/a>2.\u00a0\u00a0\u00a0Interpretation.<\/p>\n \u00a0\u00a0\u00a0In this Act, unless the context otherwise requires\u2014<\/p>\n \u00a0\u00a0\u00a0(a<\/i>)\u00a0\u00a0\u00a0“actuary” means a person who is a member, an associate or a fellow of a professional institute, faculty, society or association of actuaries, recognised as such by the Authority and who is authorised by that institute, faculty, society or association to certify actuarial valuations of life insurance business;<\/p>\n \u00a0\u00a0\u00a0(b<\/i>)\u00a0\u00a0\u00a0“admitted assets” includes any properties, security, items or interest of a person but does not include\u2014<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(a<\/i>)\u00a0\u00a0\u00a0unsecured loans;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(b<\/i>)\u00a0\u00a0\u00a0mortgaged assets;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(c<\/i>)\u00a0\u00a0\u00a0unpaid premium which is due by more than three months;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(d<\/i>)\u00a0\u00a0\u00a0intangible assets;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(e<\/i>)\u00a0\u00a0\u00a0prepaid preliminary expenses;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(f<\/i>)\u00a0\u00a0\u00a0assets held outside Uganda, except assets owed by foreign re-insurers;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(g<\/i>)\u00a0\u00a0\u00a0any other assets as may be determined by the Authority;<\/p>\n \u00a0\u00a0\u00a0(c<\/i>)\u00a0\u00a0\u00a0“admitted liabilities” means liabilities shown as current contingents or as prospective liabilities in the accounts of an insurer and includes liabilities in respect of a policy of long term insurance business, but does not include\u2014<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(a<\/i>)\u00a0\u00a0\u00a0liabilities in respect of share capital;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(b<\/i>)\u00a0\u00a0\u00a0liabilities in respect of such matters as the Authority may by notice on writing direct;<\/p>\n \u00a0\u00a0\u00a0(d<\/i>)\u00a0\u00a0\u00a0“Authority” means the Insurance Regulatory Authority of Uganda established under Part II of this Act;<\/p>\n \u00a0\u00a0\u00a0(e<\/i>)\u00a0\u00a0\u00a0“central bank”<\/b> means the Bank of Uganda established under the Bank of Uganda Act;<\/p>\n \u00a0\u00a0\u00a0(f<\/i>)\u00a0\u00a0\u00a0“claim settling agent”<\/b> means a person licensed under this Act to undertake the business of settling and negotiating the settlement of an insurance claim, on behalf of an insurer, under a policy issued by the insurer within or outside Uganda;<\/p>\n \u00a0\u00a0\u00a0(g<\/i>)\u00a0\u00a0\u00a0“currency point” has the value assigned to it in Schedule 1;<\/p>\n \u00a0\u00a0\u00a0(h<\/i>)\u00a0\u00a0\u00a0“director” means a director of the governing body of an insurer, a broker or an adjuster;<\/p>\n \u00a0\u00a0\u00a0(i<\/i>)\u00a0\u00a0\u00a0“document” includes accounts, deeds, letters, writings, books and any other records of information however compiled, recorded or stored, whether in a written or printed form, on microfilm or in any other form;<\/p>\n \u00a0\u00a0\u00a0(j<\/i>)\u00a0\u00a0\u00a0“foreign company”<\/b> means a company not being a local company;<\/p>\n \u00a0\u00a0\u00a0(k<\/i>)\u00a0\u00a0\u00a0“health insurance organisation” means a person engaged in the business of undertaking liability in respect of funding healthcare, by way of insurance;<\/p>\n \u00a0\u00a0\u00a0(l<\/i>)\u00a0\u00a0\u00a0“health membership organisation” means a person engaged in the business of undertaking liability in respect of funding healthcare, by way of membership;<\/p>\n \u00a0\u00a0\u00a0(m<\/i>)\u00a0\u00a0\u00a0“insurance”<\/b> includes assurance and reinsurance;<\/p>\n \u00a0\u00a0\u00a0(n<\/i>)\u00a0\u00a0\u00a0“insurance agent”<\/b> means a person appointed and authorised by an insurer to solicit applications for insurance or negotiate for insurance coverage on behalf of the insurer and to perform other functions that may be assigned to him or her by the insurer, and who in consideration for his or her services receives Authority from the insurer;<\/p>\n \u00a0\u00a0\u00a0(o<\/i>)\u00a0\u00a0\u00a0“insurance broker”<\/b> means a person\u2014<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(i)\u00a0\u00a0\u00a0not being an agent; and<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(ii)\u00a0\u00a0\u00a0acting as an independent contractor for Authority or other remuneration, who solicits or negotiates insurance business on behalf of an insured or prospective insured other than himself or herself;<\/p>\n \u00a0\u00a0\u00a0(p<\/i>)\u00a0\u00a0\u00a0“insurance surveyor” means a person who engages in surveying risks and in advising on the rate and terms and conditions of premiums;<\/p>\n \u00a0\u00a0\u00a0(q<\/i>)\u00a0\u00a0\u00a0“insurer”<\/b> includes reinsurer;<\/p>\n \u00a0\u00a0\u00a0(r<\/i>)\u00a0\u00a0\u00a0“intermediary”<\/b> means a person who invites other persons to make offers or proposals or to take other steps with a view to entering into a contract of insurance with an insurer, but does not include a person who merely publishes an invitation to the order of another person;<\/p>\n \u00a0\u00a0\u00a0(s<\/i>)\u00a0\u00a0\u00a0“licence” means a licence issued under this Act;<\/p>\n \u00a0\u00a0\u00a0(t<\/i>)\u00a0\u00a0\u00a0“life insurance fund” means the total of the reserves specified under section 47(3);<\/p>\n \u00a0\u00a0\u00a0(u<\/i>)\u00a0\u00a0\u00a0“local company”<\/b> means a company registered or incorporated under the Companies Act in which the majority shares and actual controlling interest are held by citizens of Uganda;<\/p>\n \u00a0\u00a0\u00a0(v<\/i>)\u00a0\u00a0\u00a0“loss adjuster”<\/b> means a person registered under this Act to undertake the business of professional loss adjustment for and on behalf of an insurer, an insured or any other person and who may in addition settle claims on behalf of an insurer;<\/p>\n \u00a0\u00a0\u00a0(w<\/i>)\u00a0\u00a0\u00a0“loss assessor” means a person licensed under this Act to undertake the business of assessing and investigating losses and who may settle losses on behalf of an insurer or an insured;<\/p>\n \u00a0\u00a0\u00a0(x<\/i>)\u00a0\u00a0\u00a0“micro insurance” means insurance for the protection of low-income people against specific perils in exchange for regular premium payments proportionate to the likelihood and cost of risk involved;<\/p>\n \u00a0\u00a0\u00a0(y<\/i>)\u00a0\u00a0\u00a0“Minister”<\/b> means the Minister responsible for finance;<\/p>\n \u00a0\u00a0\u00a0(z<\/i>)\u00a0\u00a0\u00a0“mutual insurance company”<\/b> means a company of which by its constitution only policyholders are members of the company and which has no share capital;<\/p>\n \u00a0\u00a0\u00a0(aa<\/i>)\u00a0\u00a0\u00a0“non-life insurance fund” means the total of reserves specified under section 47(2);<\/p>\n \u00a0\u00a0\u00a0(ab<\/i>)\u00a0\u00a0\u00a0“person” includes any company or association or body of persons corporate or unincorporated;<\/p>\n \u00a0\u00a0\u00a0(ac<\/i>)\u00a0\u00a0\u00a0“premium” means the consideration for entering into an insurance contract;<\/p>\n \u00a0\u00a0\u00a0(ad<\/i>)\u00a0\u00a0\u00a0“principal officer” means an officer responsible for the general control and supervision of the insurance business of a person licensed under this Act;<\/p>\n \u00a0\u00a0\u00a0(ae<\/i>)\u00a0\u00a0\u00a0“reinsurance business”<\/b> means a business of undertaking liability to pay money to insurers or reinsurers in respect of contractual liabilities in respect of insurance business incurred by insurers or reinsurers and includes retrocession;<\/p>\n \u00a0\u00a0\u00a0(af<\/i>)\u00a0\u00a0\u00a0“reinsurer”<\/b> means a person who carries on reinsurance business and includes a retrocessionaire;<\/p>\n \u00a0\u00a0\u00a0(ag<\/i>)\u00a0\u00a0\u00a0“retrocession”<\/b> means the reinsurance of reinsurance business accepted by a reinsurer;<\/p>\n \u00a0\u00a0\u00a0(ah<\/i>)\u00a0\u00a0\u00a0“retrocessionaire”<\/b> means a person reinsuring a reinsurer.<\/p>\n \u00a0\u00a0\u00a0(ai<\/i>)\u00a0\u00a0\u00a0“risk manager” means a person who does the business of minimising losses which arise from unforeseen events and who minimises the cost of the losses by arranging physical or financial measures through insurance or any other means;<\/p>\n \u00a0\u00a0\u00a0(aj<\/i>)\u00a0\u00a0\u00a0“Tribunal” means the Insurance Appeals Tribunal established under Part VIIIA of this Act.<\/p>\n \u00a0<\/p>\n <\/a>3.\u00a0\u00a0\u00a0Use of the word “insurance”<\/b> and persons to carry on insurance business.<\/p>\n \u00a0\u00a0\u00a0(1) No person, other than a person licensed to operate under this Act, shall use the word “insurance”, “assurance” or “reinsurance” or any derivations in English or any other language as part of his or her business name.<\/p>\n \u00a0\u00a0\u00a0(2) No person, other than a person licensed as an insurer under this Act, shall issue any insurance policy on\u2014<\/p>\n \u00a0\u00a0\u00a0(a<\/i>)\u00a0\u00a0\u00a0persons who at the time of effecting a contract are residents of Uganda;<\/p>\n \u00a0\u00a0\u00a0(b<\/i>)\u00a0\u00a0\u00a0goods or assets situated in Uganda;<\/p>\n \u00a0\u00a0\u00a0(c<\/i>)\u00a0\u00a0\u00a0ships, aircraft or other vehicles registered in Uganda; and<\/p>\n \u00a0\u00a0\u00a0(d<\/i>)\u00a0\u00a0\u00a0goods imported from other countries except personal effects and donations.<\/p>\n \u00a0<\/p>\n <\/a>4.\u00a0\u00a0\u00a0Insurers to be bodies corporate.<\/p>\n \u00a0\u00a0\u00a0No person shall carry on insurance business in Uganda except\u2014<\/p>\n \u00a0\u00a0\u00a0(a<\/i>)\u00a0\u00a0\u00a0a company incorporated under the Companies Act;<\/p>\n \u00a0\u00a0\u00a0(b<\/i>)\u00a0\u00a0\u00a0an insurance corporation established by law;<\/p>\n \u00a0\u00a0\u00a0(c<\/i>)\u00a0\u00a0\u00a0a cooperative insurance society registered under the Cooperative Societies Act; or<\/p>\n \u00a0\u00a0\u00a0(d<\/i>)\u00a0\u00a0\u00a0a mutual insurance company.<\/p>\n \u00a0<\/p>\n <\/a>5.\u00a0\u00a0\u00a0Classification of insurance business.<\/p>\n \u00a0\u00a0\u00a0(1) For purposes of this Act, insurance business shall comprise\u2014<\/p>\n \u00a0\u00a0\u00a0(a<\/i>)\u00a0\u00a0\u00a0life insurance;<\/p>\n \u00a0\u00a0\u00a0(b<\/i>)\u00a0\u00a0\u00a0non\u2013life insurance consisting of the following classes\u2014<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(i)\u00a0\u00a0\u00a0fire insurance;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(ii)\u00a0\u00a0\u00a0burglary insurance;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(iii)\u00a0\u00a0\u00a0personal accident insurance;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(iv)\u00a0\u00a0\u00a0employers liability insurance;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(v)\u00a0\u00a0\u00a0public liability insurance;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(vi)\u00a0\u00a0\u00a0marine hull insurance;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(vii)\u00a0\u00a0\u00a0marine cargo insurance;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(viii)\u00a0\u00a0\u00a0aviation insurance;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(ix)\u00a0\u00a0\u00a0motor vehicle insurance;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(x)\u00a0\u00a0\u00a0crops, fishing and livestock insurance;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(xi)\u00a0\u00a0\u00a0bonds;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(xii)\u00a0\u00a0\u00a0contractors all risks insurance;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(xiii)\u00a0\u00a0\u00a0machinery breakdown and installation and boiler explosion insurance;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(xiiia)\u00a0\u00a0\u00a0health insurance;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(xiiib)\u00a0\u00a0\u00a0health membership;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(xiiic)\u00a0\u00a0\u00a0micro insurance;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(xiiid)\u00a0\u00a0\u00a0bancassurance;<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(xiv)\u00a0\u00a0\u00a0any insurance other than specified above;<\/p>\n \u00a0\u00a0\u00a0(c<\/i>)\u00a0\u00a0\u00a0reinsurance business in respect of any of the foregoing classes.<\/p>\n \u00a0\u00a0\u00a0(2) No person shall transact the business of life insurance and non-life insurance as a composite company.<\/p>\n \u00a0<\/p>\n <\/a>6.\u00a0\u00a0\u00a0Minimum capital requirements.<\/p>\n \u00a0\u00a0\u00a0(1) No local company shall be licensed as an insurer or if licensed shall have its licence renewed unless it has maintained at all times a paid-up capital of not less than\u2014<\/p>\n \u00a0\u00a0\u00a0(a<\/i>)\u00a0\u00a0\u00a0200,000 currency points, in the case of a life or non-life insurance business;<\/p>\n \u00a0\u00a0\u00a0(b<\/i>)\u00a0\u00a0\u00a0500,000 currency points, in the case of a reinsurance business.<\/p>\n \u00a0\u00a0\u00a0(2) No foreign company shall be licensed as an insurer or if licensed have its licence renewed unless it has maintained at all times a paid-up capital of not less than\u2014<\/p>\n \u00a0\u00a0\u00a0(a<\/i>)\u00a0\u00a0\u00a050,000,000 currency points in the case of a life or non-life insurance business;<\/p>\n \u00a0\u00a0\u00a0(b<\/i>)\u00a0\u00a0\u00a01,250,000 currency points in the case of a reinsurance business.<\/p>\n \u00a0\u00a0\u00a0(3) The paid-up capital of an insurer as described in subsections (1) and (2) above may\u2014<\/p>\n \u00a0\u00a0\u00a0(a<\/i>)\u00a0\u00a0\u00a0be invested in such assets in Uganda as the central bank shall approve;<\/p>\n \u00a0\u00a0\u00a0(b<\/i>)\u00a0\u00a0\u00a0consist solely of ordinary shares each of which has the same value.<\/p>\n \u00a0\u00a0\u00a0(3a) Notwithstanding subsections (1) and (2), a health insurance organisation, a health membership organisation, a micro insurance organisation or an insurance company set up for the purposes of regional cooperation shall have a paid up capital as may be prescribed by regulations.<\/p>\n \u00a0\u00a0\u00a0(4) Every insurer shall transfer from its profits each year, before any dividend is declared and after provision has been made for taxation, a sum of 5 percent of the profits, to be paid-up capital of the insurer to facilitate capital base growth.<\/p>\n \u00a0\u00a0\u00a0(5) The Minister may, on the recommendation of the Authority and by statutory instrument, amend the minimum paid-up capital or security deposit requirements under such terms and conditions as he or she may determine.<\/p>\n \u00a0<\/p>\n <\/a>7.\u00a0\u00a0\u00a0Security deposits.<\/p>\n \u00a0\u00a0\u00a0(1) Every insurer shall hold in an account maintained by the insurer for the purpose, a security deposit of at least 10 percent of the capital of the insurer.<\/p>\n \u00a0\u00a0\u00a0(2) The deposit made under this section shall be considered part of the assets in respect of the capital of the insurer.<\/p>\n \u00a0\u00a0\u00a0(3) The deposits made under subsection (1) shall be invested by the insurer in Government securities or any other investment as may be approved by the Authority.<\/p>\n \u00a0\u00a0\u00a0(4) All income accruing from a deposit made under this section shall be payable to the insurer making the deposit.<\/p>\n \u00a0<\/p>\n <\/a>8.\u00a0\u00a0\u00a0Use of the security deposit.<\/p>\n \u00a0\u00a0\u00a0The security deposit made under section 7 shall be available to the insurer in the following circumstances\u2014<\/p>\n \u00a0\u00a0\u00a0(a<\/i>)\u00a0\u00a0\u00a0where an insurer suffers a substantial loss arising from liability to claimants and the loss is such that it cannot be met from its available resources, the Authority may, after ascertaining the nature of the claim and upon application made by the insurer, approve the withdrawal from the security deposit of the insurer of an amount of not more than 50 percent of the security deposit; and any amount withdrawn shall be replaced by the insurer not later than 90 days after the date of the withdrawal;<\/p>\n \u00a0\u00a0\u00a0(b<\/i>)\u00a0\u00a0\u00a0in the event of closure or winding up of the insurance business, the security deposit shall first be utilised for the discharge of any liabilities arising out of policies transacted by the insurer which are undischarged at the time of closure or winding up of the insurance business.<\/p>\n \u00a0<\/p>\n <\/a>9.\u00a0\u00a0\u00a0Formation of mutual insurance companies.<\/p>\n \u00a0\u00a0\u00a0(1) Any 25 persons but not more than 300 may, by subscribing their names to a memorandum of association, form a mutual insurance company.<\/p>\n \u00a0\u00a0\u00a0(2) The memorandum of association shall state\u2014<\/p>\n \u00a0\u00a0\u00a0(a<\/i>)\u00a0\u00a0\u00a0the insurance business or any class of the insurance business which is to be carried on;<\/p>\n \u00a0\u00a0\u00a0(b<\/i>)\u00a0\u00a0\u00a0the name of the company, including the expression “mutual insurance company” in that name;<\/p>\n \u00a0\u00a0\u00a0(c<\/i>)\u00a0\u00a0\u00a0the location of the principal office of the company;<\/p>\n \u00a0\u00a0\u00a0(d<\/i>)\u00a0\u00a0\u00a0the limitation of liability of its members;<\/p>\n \u00a0\u00a0\u00a0(e<\/i>)\u00a0\u00a0\u00a0the amount of guarantee capital;<\/p>\n \u00a0\u00a0\u00a0(f<\/i>)\u00a0\u00a0\u00a0the rights of the contributors towards the guarantee capital;<\/p>\n \u00a0\u00a0\u00a0(g<\/i>)\u00a0\u00a0\u00a0the methods of clearing the guarantee capital;<\/p>\n \u00a0\u00a0\u00a0(h<\/i>)\u00a0\u00a0\u00a0the particulars of the governing body of the company;<\/p>\n \u00a0\u00a0\u00a0(i<\/i>)\u00a0\u00a0\u00a0the method of distributing surplus;<\/p>\n \u00a0\u00a0\u00a0(j<\/i>)\u00a0\u00a0\u00a0the articles and rules governing the company.<\/p>\n \u00a0\u00a0\u00a0(3) Where a person desires to become a member of a mutual insurance company, he or she shall enter into the instrument of subscription for members, the subject matter and the amount of insurance desired; and he or she shall affix his or her signature to the instrument.<\/p>\n \u00a0\u00a0\u00a0(4) An application for licensing a mutual insurance company under this Act shall be made within a period that may be prescribed by the Authority.<\/p>\n \u00a0<\/p>\n <\/a>10.\u00a0\u00a0\u00a0Capital requirement of mutual insurance companies.<\/p>\n \u00a0\u00a0\u00a0(1) Sections 6 and 7 shall not apply to a mutual insurance company.<\/p>\n \u00a0\u00a0\u00a0(2) The capital requirement of a mutual insurance company shall be the assets of the company and a surplus of not less than 15 percent of its assets over its liabilities or such other percentage that may be determined by the Authority.<\/p>\n \u00a0<\/p>\n <\/a>11.\u00a0\u00a0\u00a0Board of directors of an insurance company.<\/p>\n \u00a0\u00a0\u00a0(1) Every insurer shall furnish the Authority with the names and addresses of its board of directors, senior executive and technical personnel.<\/p>\n \u00a0\u00a0\u00a0(2) An insurer shall, within 14 days after the event, notify the Authority, in writing, of any change in the board of directors, senior executive and technical personnel.<\/p>\n \u00a0\u00a0\u00a0(3) A member of the board of directors of an insurance company shall not at the same time serve as a member of the board of directors of another insurance company or of an insurance brokerage company in Uganda.<\/p>\n \u00a0<\/p>\n <\/a>12.\u00a0\u00a0\u00a0Disqualification of an officer of an insurance company.<\/p>\n \u00a0\u00a0\u00a0(1) No person shall, without the express authority of the Authority, act or continue to act for an insurance company or be directly or indirectly involved in the management of an insurance company\u2014<\/p>\n \u00a0\u00a0\u00a0(a<\/i>)\u00a0\u00a0\u00a0who has been an officer of, or directly responsible for the mismanagement of an insurance company, insurance brokerage company, financial institution, security brokerage company or any other investment concern;<\/p>\n \u00a0\u00a0\u00a0(b<\/i>)\u00a0\u00a0\u00a0who has been convicted by a court of competent jurisdiction or tribunal of any offence involving fraud or dishonesty;<\/p>\n \u00a0\u00a0\u00a0(c<\/i>)\u00a0\u00a0\u00a0who has been adjudged or declared bankrupt by a court of competent jurisdiction or who compounds with his or her creditors.<\/p>\n \u00a0\u00a0\u00a0(2) No person holding 5 percent or more of the proprietary interests in any one insurance company shall serve as a management person or a principal officer of an intermediary licensed under this Act.<\/p>\n \u00a0\u00a0\u00a0(3) No person holding 5 percent or more of the proprietary interest of any insurance company shall own more than 50 percent of the equity share of an intermediary licensed under this Act.<\/p>\n \u00a0<\/p>\n <\/a>13.\u00a0\u00a0\u00a0Head office and branches.<\/p>\n \u00a0\u00a0\u00a0(1) An insurer shall maintain a head office in Uganda and shall notify the Authority of the location and address of the head office, in writing.<\/p>\n \u00a0\u00a0\u00a0(2) No insurer shall open a new branch or agency or close down or change the location of its branch or agency without the approval, in writing, of the Authority.<\/p>\n \u00a0<\/p>\n PART II \u00a0<\/p>\n <\/a>14.\u00a0\u00a0\u00a0Establishment of the Authority.<\/p>\n
THE UGANDA INSURANCE AUTHORITY.<\/p>\n
LICENSING OF INSURANCE AND REINSURANCE COMPANIES.<\/p>\n
CONDUCT AND OPERATION OF INSURANCE.<\/p>\n
REINSURANCE BUSINESS.<\/p>\n
AMALGAMATIONS AND TRANSFERS.<\/p>\n
INSOLVENCY AND WINDING UP.<\/p>\n
COMPENSATION FOR POLICYHOLDERS OF INSOLVENT INSURER.<\/p>\n
INTERMEDIARIES, RISK MANAGERS, LOSS ASSESSORS, LOSS ADJUSTERS, INSURANCE SURVEYORS AND CLAIMS SETTLING AGENTS.<\/p>\n
THE INSURANCE APPEALS TRIBUNAL.<\/p>\n
MISCELLANEOUS.<\/p>\n
INSURANCE ACT.<\/p>\n
PRELIMINARY.<\/p>\n
THE UGANDA INSURANCE AUTHORITY.<\/p>\n