A wreckage of a taxi involved in an accident at Namanve along
Kampala-Jinja road, Uganda. Insurance Regulatory Authority of Uganda
(IRAU) has begun cracking down on fraud in the insurance sector. FILE
PHOTO | NMG
Uganda's insurance regulator has finally begun cracking down on fraud in the sector.
Cases
of insurance fraud have affected many industry players in the past, but
no prosecutions were pursued by the Insurance Regulatory Authority of
Uganda (IRAU).
IRAU blamed lack of enforcement capacity
for its failure to stop these crimes, but increasing fraud-related
troubles faced by the industry have seemingly forced it to tackle the
problem.
The fraud investigation unit set up by IRAU
commenced operations six months ago and published its first anti fraud
enforcement report at the end of October.
A list of 15
fraud cases compiled between May and October that are being investigated
by the insurance regulator shows credit bond fraud recorded in one case
worth Ush1.2 billion ($316,093) topped the list by value during the
period under review.
This case is partly linked to a
rogue contractor desperate to obtain key financial documents required
for bidders interested in handling road and bridge construction
projects, sources indicated. Fidelity guarantees recorded two cases
worth Ush980 million ($258,143).
Fake deaths attributed
to false claims lodged against life insurance policies registered four
cases valued at Ush162 million($42,673), while stolen car fraud
accounted for one case valued at Ush60 million ($15,805).
Motor
accident fraud registered one case valued at Ush27 million ($7,112),
while car-damage related fraud yielded one case worth Ush21 million
($5,532), the data shows.
Workman compensation products
registered one fraud case worth Ush13, 582,733 ($3,578) while domestic
policy fraud posted one fraud case valued at Ush10.45 million ($2,752).
Three premium embezzlement cases were recorded between May and October 2018, with a combined value of Ush9 million ($2,371).
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