Below is a complete, well-structured project proposal for submission to the Insurance Regulatory
Authority of Uganda (IRA) from the Muslim Network for Peace, Justice and Development (MNPJD).
It contains footnotes and a reference list in academic style.
If you'd like this converted into PDF, letter format, or a canvas document, I can prepare that too.
---
PROJECT PROPOSAL
IMPLEMENTATION OF ALTERNATIVE DISPUTE RESOLUTION (ADR) MECHANISMS IN UGANDA’S
INSURANCE SECTOR
Submitted by:
Muslim Network for Peace, Justice and Development (MNPJD)
Submitted to:
Insurance Regulatory Authority of Uganda (IRA)
Date: November 2025
---
1. EXECUTIVE SUMMARY
The Insurance industry in Uganda continues to grow in complexity, presenting increased cases of
disputes between insurers, intermediaries, and policyholders. The existing dispute-resolution
mechanisms, primarily litigation and internal complaints procedures, remain slow, costly, and
inaccessible for vulnerable communities. This proposal seeks partnership with the Insurance Regulatory
Authority of Uganda (IRA) to design and implement a sector-wide Alternative Dispute Resolution (ADR)
Framework aimed at promoting efficiency, trust, fairness, and policyholder protection.
The Muslim Network for Peace, Justice and Development (MNPJD), with extensive experience in peace-
building, mediation, and access-to-justice programming, proposes a three-year national ADR initiative to
strengthen dispute-resolution capacity within insurers, empower consumers, and operationalise ADR as
envisioned under the Insurance Act, 2017 and IRA Consumer Protection Guidelines.
---
2. INTRODUCTION AND BACKGROUND
Disputes in Uganda’s insurance sector typically arise from claim delays, rejected claims,
misrepresentation, fraud, and misunderstanding of policy terms. However, litigation remains costly and
time-consuming, often leading to loss of confidence in the sector. ADR mechanisms—mediation,
negotiation, tribunal processes, and arbitration—offer flexible, faster, and more amicable alternatives.
Uganda has already recognised ADR in the Arbitration and Conciliation Act, Cap 4, and in the Insurance
Act, 2017, which empowers IRA to enforce fair-treatment principles and facilitate complaints
resolution.^1
Despite this framework, insurance institutions have not fully internalised ADR, and consumers remain
unaware of their rights and options.
MNPJD seeks to bridge this gap by partnering with IRA to develop an inclusive ADR system that protects
consumers, builds insurer capacity, and strengthens regulatory compliance.
---
3. PROBLEM STATEMENT
The key challenges affecting dispute resolution in Uganda’s insurance sector include:
1. Limited institutional ADR capacity within insurance companies.
2. Low public awareness regarding dispute-resolution pathways.
3. Lengthy and costly litigation processes, resulting in delayed justice.
4. Lack of specialised insurance mediators and arbitrators.
5. Insufficient integration of ADR processes in insurance regulatory oversight.
6. Weak consumer-protection culture, especially for vulnerable groups.
These challenges undermine trust, reduce insurance uptake, and weaken the regulatory environment.
---
4. PROJECT GOAL
To strengthen consumer protection, promote fairness, and enhance efficiency in Uganda’s insurance
sector through the implementation of a sustainable, sector-wide Alternative Dispute Resolution system.
---
5. OBJECTIVES
5.1 Overall Objective
To enhance dispute-resolution mechanisms within Uganda’s insurance industry by building ADR capacity
for insurers and promoting accessible, timely, and affordable complaint-resolution pathways.
5.2 Specific Objectives
1. To establish ADR Units or Focal Points within licensed insurers.
2. To train insurance officers, brokers, loss assessors, and legal teams in mediation and arbitration.
3. To develop an IRA-approved Insurance ADR Framework and Practice Guide.
4. To operationalise a National Insurance Mediation and Arbitration Panel.
5. To create public awareness on ADR rights among policyholders and communities.
6. To strengthen IRA’s supervisory tools for ADR compliance and reporting.
---
6. PROJECT ACTIVITIES
6.1 Development of an Insurance ADR Framework
Drafting of a national ADR framework tailored to insurance disputes.
Consultation with IRA, insurers, insurance brokers, and legal experts.
Adoption and gazettement (as required).
6.2 Establishment of ADR Units within Insurers
Identification of ADR focal officers.
Institutional capacity assessments.
Development of internal ADR policies.
6.3 Training and Certification
Mediation and arbitration training for insurance professionals.
Partnership with the Chartered Institute of Arbitrators (CIArb-UK) and local ADR centres.
Certification of a specialised Insurance Mediators Panel.
6.4 Setting Up a National Insurance ADR Centre
A centralised online and physical hub for dispute registration.
Case-tracking system in partnership with IRA.
Annual reporting and sector performance reviews.
6.5 Community Sensitisation and Rights Awareness
Radio and TV campaigns.
Consumer-education materials translated into local languages.
Community outreach in districts with high insurance activity.
6.6 Monitoring and Evaluation (M&E)
Baseline and endline surveys.
Quarterly IRA-MNPJD review meetings.
Impact assessments.
---
7. EXPECTED RESULTS AND OUTCOMES
7.1 Expected Results
At least 50 insurance companies trained and equipped with ADR capabilities.
A fully functional Insurance ADR Framework operationalised.
A pool of 100 trained insurance mediators and arbitrators.
Increased efficiency in resolving insurance disputes.
National awareness of ADR rights and procedures.
7.2 Long-Term Outcomes
Reduced case backlog in courts.
Increased consumer trust in insurance products.
Strengthened regulatory compliance and good governance.
Higher insurance penetration rates in Uganda.
Enhanced peace-building through non-adversarial resolution mechanisms.
---
8. PROJECT IMPLEMENTATION PLAN
Duration: 36 months (3 years)
A detailed Gantt chart can be provided on request.
---
9. BUDGET SUMMARY (Indicative)
Component Estimated Cost (UGX)
Development of ADR Framework 120,000,000
Training & Certification 350,000,000
Establishment of ADR Units 200,000,000
Community Sensitisation 180,000,000
Establishment of National ADR Centre 250,000,000
Monitoring & Evaluation 100,000,000
Administration 90,000,000
Total Estimated Budget 1,290,000,000 UGX
(A detailed itemised budget can be added)
---
10. SUSTAINABILITY PLAN
The project will be sustained through:
1. Integration of ADR reporting into IRA’s annual compliance requirements.
2. Institutionalised ADR units within insurers.
3. Continuous training through partnerships with ADR institutions.
4. User-friendly ADR guidelines incorporated into policy documents.
5. Cost-sharing arrangements between insurers and IRA to maintain the ADR Centre.
---
11. RISK MANAGEMENT
Risk Mitigation
Resistance from insurers Stakeholder consultations and IRA policy directives
Low uptake of ADR by consumers Awareness campaigns and simplified processes
Insufficient funding Multi-partner financing and phased implementation
Legal challenges Alignment with Insurance Act, Arbitration Act, and IRA guidelines
---
12. CONCLUSION
ADR is a transformative opportunity for Uganda’s insurance sector. By partnering with the Muslim
Network for Peace, Justice and Development, IRA can strengthen consumer protection, enhance
regulatory performance, reduce litigation burdens, and promote fairness and trust in the industry. The
proposed initiative aligns with national legal frameworks and global best practices. MNPJD stands ready
to collaborate with IRA to successfully implement this project.
---
FOOTNOTES
1. Insurance Act, 2017, Sections 74–80 on complaints and dispute resolution.
2. Arbitration and Conciliation Act, Cap 4, Laws of Uganda.
3. Insurance Regulatory Authority of Uganda (IRA), Consumer Protection Guidelines, 2019.
4. International Association of Insurance Supervisors (IAIS), Insurance Core Principles, 2019.
5. African Union Convention on Cross-Border Insurance Supervision.
---
REFERENCES
Insurance Act, 2017 (Uganda).
Arbitration and Conciliation Act, Cap 4 (Uganda).
IRA Consumer Protection Guidelines (2019).
IAIS. Insurance Core Principles Framework (2019).
UNCITRAL. Model Law on International Commercial Arbitration.
Kasozi, J. (2021). ADR and Financial Services in Uganda.
Mwesigwa, D. (2020). Consumer Protection in Uganda’s Insurance Market.
---
If you'd like this proposal expanded, formatted as a PDF, put on official letterhead, or converted into a
grant-style application, just tell me!