Minister of Agriculture, Animal Industry and Fisheries Frank Tumwebaze has accused some insurance companies of unfairly denying compensation to farmers despite collecting insurance premiums, describing the sector as failing to meet the expectations of policyholders.
Speaking on the challenges facing agricultural insurance, Tumwebaze said many farmers who insure their livestock under the Agricultural Credit Facility (ACF) fail to receive compensation when their animals die, alleging that insurers often rely on technicalities to reject legitimate claims.
The minister called on the Insurance Regulatory Authority (IRA) to investigate the complaints and ensure insurance companies honour valid claims.
“If this situation does not improve, insurance should no longer be made a mandatory requirement for accessing loans and other services,” Tumwebaze said.
He added that he had received similar complaints from other sectors, including media organizations, which allegedly failed to receive compensation after insured equipment was damaged.
Tumwebaze’s remarks come as government continues to promote agricultural insurance through the Uganda Agriculture Insurance Scheme (UAIS), a programme that subsidizes insurance premiums to protect farmers against losses resulting from drought, floods, pests, diseases, and livestock deaths.
The scheme is intended to enhance farmers’ resilience to climate-related risks and encourage investment in the agricultural sector by reducing financial losses.
By the time of publication, the Insurance Regulatory Authority (IRA) had not publicly responded to the minister’s remarks or the allegations regarding the handling of insurance claims.
The comments are expected to renew debate over the effectiveness of agricultural insurance and the need for stronger consumer protection within Uganda’s insurance industry.
