” In light of the COVID-19 pandemic, the Insurance Regulatory Authority of Uganda (IRA) has been engaging all regulated medical insurance and reinsurance providers on the possibility of extending the existing medical policies to cover cases of COVID-19 aware of the fact that majority of insurance policies exclude cover for pandemics due to their catastrophic nature ” reads a Press release by the Insurance Regulatory Authority of Uganda.
Risk assessment when it comes to pandemics is difficult largely due to absence of reliable data in most cases.
This therefore makes the determination of an appropriate premium which is a key business decision in insurance difficult.
Secondly, occurrence of a pandemic is likely to result into vast claims that may threaten the survival of an insurancecompany.
” To this end, insurance players have unanimously agreed to support Government efforts in preventing the spread of COVID-19 by making an exemption to the standard policy terms and conditions (pandemic exclusion) and admitting valid claims for medical expenses for the treatment of insured patients infected with COVID-19 ” The Letter further says.
The cover will extend to testing, treatment, and care at the Government facilities.
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