KAMPALA —UAP Old Mutual Insurance Uganda Limited is currently working closely and cooperating with The Insurance Regulatory Authority of Uganda (IRA) to resolve its licence status to underwrite performance bonds.
According to a statement released by the company’s Managing Director, Stephen Chikovore, UAP has been licenced under the relevant insurance laws to underwrite performance bonds amongst other insurance lines of business since 1971 and has adhered to all local laws and regulations governing the insurance industry as stipulated by the government and IRA and will continue to do so.
This came after the Insurance Authority issued a notice prohibiting UAP Old Mutual Insurance Limited and Britam Insurance Company Uganda from underwriting new businesses related to performance bonds or renewing any existing policies unless authorized by the authority.
“Take notice that the Insurance Regulatory Authority of Uganda in exercise of its powers prescribed by section 45 of the insurance act, with effect from Tuesday 19th October 2021, varied the UAP Old Mutual Insurance Uganda Limited licence to prohibit it from underwriting new businesses related to performance bonds or renewing any existing policies unless authorized by the authority. UAP will however continue servicing the existing performance bonds on a run-off basis. This was per the notice signed by Alhaj Kaddunabbi Imbrahim Lubega, Chief Executive Officer, Insurance Regulatory Authority of Uganda.
“We would like to assure all our stakeholders that the notice does not affect performance bonds which are currently running or any other lines of insurance business. The company is currently working closely and cooperating with IRA to have this matter resolved as soon as possible,” Mr Chikovore stated.