Insurance companies accept to cover Covid-19 cases
Insurance companies in Uganda have accepted to start covering deadly coronavirus cases in their insurance policies.
According to the Insurance Regulatory Authority of Uganda(IRA), following the outbreak of the pandemic, they have been engaging all medical insurance and re-insurance providers on the possibility of extending medical insurance policies to cover Covid-19.
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“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 and admitting valid claims for medical expenses for the treatment of insured patients infected with Covid-19,” said the IRA Chief Executive Officer, Ibrahim Lubega Kaddunabbi.
Majority of the insurance policies don’t cover pandemics due to their catastrophic nature but according to the regulator, something ought to be done to change the status quo, prompting them to engage into negotiations with the insurance companies.
“IRA is therefore informing the insuring public that the existing medical insurance policies will provide cover for Covid-19 cases which may include testing, treatment and care at the government designed facilities.”
Medical insurance policyholders and other customers have now been asked to seek further details and clarifications from their medical insurance providers.
The development comes a few weeks after Prudential announced a cash payout to its customers, should they unfortunately be diagnosed with Covid-19.
The life insurance firm last month said the pay-out is intended to help their family manage expenses while they are in recovery.
In addition, the firm said, if a customer is admitted to a hospital with Covid-19, Prudential will provide a daily allowance at no extra cost to the client.
“Covid -19 is impacting everyone and all aspects of our lives. In times of uncertainty, it is important that an insurer deliver on its promises. For nearly two centuries, Prudential has been standing up for clients and communities in good times and bad, and we stand with Uganda in this challenging time”, said Arjun Mallik, managing director, Prudential East Africa.
