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Ugandan importers are required to insure their imports still on the high seas with local insurance companies through the Local Marine Insurance Portal, starting from October 2024.
Ugandan importers are required to insure their imports still on the high seas with local insurance companies through the Local Marine Insurance Portal, starting from October 2024. This follows the completion of all the necessary processes, including integrating the Uganda Revenue Authority (URA), Uganda Insurers Association (UIA), and the Insurance Regulatory Authority (IRA) processes and sensitization of importers and clearing and forwarding agents.
The policy was due to be implemented in 2022 but has since been postponed three times due to the failure of stakeholders to compromise. This policy measure is by Section 9 (3) of the Insurance Act, 2017 and its compliance shall be enforced at the point of import declaration with Customs.
UIA says after a long period of testing the use of the Online Local Marine Insurance portal, it has now proved to be successful and will be mandatory for importers to use it starting next month.
The idea of Local Marine insurance is to ensure that all importers use the locally licensed insurance companies to acquire marine insurance to benefit from the accruing advantages including ease of making claims in case of uncertainty. It is also said that local marine cargo insurance helps the importer avoid the 1.5 percent surcharge payable, which is otherwise about 70 percent higher than the average insurance premiums payable across all commodity types guided by the local insurance regulator.
URA Acting Commissioner Trade, Brenda Wenene urged players in the clearing and forwarding industry to learn the new processes to facilitate clients. This platform has come to facilitate the business community and to enhance the economy of the Country.
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UIA emphasizes that it is important for the traders to embrace this initiative because it has many benefits apart from helping build the capacity of local insurance companies. If marine insurance is not used, the importer faces penalties as the goods are held at the warehouse, said Elizabeth Musaasizi, System Developer of the Marine Cargo Insurance Portal while explaining the readiness of the portal.
