Insurable Interest in the Lives of Minor Children in Uganda
Loading...
Date
2023-03
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Cavendish University Law Journal
Abstract
Insurable interest is an essential requirement that distinguishes legitimate life assurance policies
from wagers. This paper analyses the statutory insurable interest of parents and guardians of
minors, in the lives of those children under Section 133(2)(a) of the Insurance Act of Uganda.
This provision implies that parents and guardians of minor children in Uganda are conferred
with a statutory insurable interest in the lives of their minor children. Therefore, they may insure
the lives of their minor children and become the beneficiaries of such policies. The major
problem is that the prospective benefits of such policies taken on the lives of minors may become
an incentive for harming or even killing the child. To interpret and determine the
appropriateness of Section 133(2)(a) of the Insurance Act, this paper compares the Ugandan
legal position with the Common Law. This comparison is essential because Insurance Law in
Uganda was heavily influenced by the principles of the Common Law. Insurance regulation was
initially written in Uganda by subsidiaries of foreign corporations, mostly those with British,
American, and Indian roots, until the late 19th century. The first insurance decree was enacted
in 1978, and since then Ugandan insurance legislation has steadily expanded to include all
relevant parts of the sector, including life assurance.This paper finds that parents’ and
guardians’ presumed insurable interest in the lives of their minor children is not supported
under the Common Law. This is because natural affection relationships are not capable of
conferring a presumed insurable interest in life assurance. As a result, Section 133(2)(a) of the
Insurance Act is largely inappropriate and it is no wonder that life insurers in Uganda do not
offer this kind of product. This paper recommends that the provision should be urgently amended
to do away with the statutory insurable interest conferred upon parents and guardians in the
lives of their minor children.
Description
Keywords
Insurance,, Insurance Act of Uganda,, Insurable interest,, Life Assurance,, Parents and Guardians,, Minors
Citation
Okurut, E & Okeny A. (2023). Insurable Interest in the Lives of Minor Children in Uganda. CULJ Vol 2