Written by PAUL MWIJAGYE   

KAMPALA, UGANDA - Recently, a Ugandan aid worker Hilda Kawuki and her Irish colleague Sharon Commins, both working for the Irish aid agency, Goal were released after spending three months in captivity in Darfur, Sudan. 
The two were kidnapped by armed militants in Darfur in early July in Sudan while on duty.

To avert incidents of a similar nature, AIG Uganda (Chartis Uganda), one of the leading insurance companies in Uganda is in advanced stages of introducing an insurance policy named Kidnap and Ransom insurance.

The first of its kind in the insurance industry in Uganda, the product will seek to cover extortion payments, as well as legal fees and trauma counseling in the event of kidnap.  

“Today's business environment is changing. Business leaders are charged with breaking new markets and new territories. The increasing pressure on raw materials means we must look into all corners of the world to deliver to the expectations of our boards and other stakeholders,” said Alex Wanjohi, the AIG Uganda managing director.

“This inevitably puts us face to face with challenges such as having to work in politically unstable regions or hostile local communities which are some of the main drivers for kidnap, ransom or extortion.”

Wanjohi said the policy will ensure that in the event of kidnap, the victim and the victim's organisation or family suffers minimum damage.

Wanjohi said the launch of the product would be just in time, since Uganda's fast growing economy needs insurance providers that have the speed to respond to the emerging unique demands.

“The launch of this product is a demonstration that we are ready to walk with the players in this economy, cushioning them against the major risks that may come their way, in pursuit of their business goals,” Wanjohi noted.

He urged government to join hands with the individual players in the industry to drive consumer education, saying that a robust and larger insurance industry has a wider impact on economic development of any country.

According to information availed by the Uganda Insurers' Association (UIA) insurance penetration in Uganda stands at 0.6 %.

Wanjohi also urged multinational organisations to desist from taking cover that is locally available from their home countries, arguing that this robs the Ugandan economy of growth opportunities.

“It is no longer necessary to take Kidnap and Ransom Insurance covers from your home countries, because by doing that you are denying Uganda's financial sector a chance to grow and that eventually has an impact on your businesses as well.”  

A Kidnap & Ransom Policy will be open to individuals, groups or organisations. The product is currently pending regulatory approval. The policy is already available in Kenya and South Africa.