KAMPALA, Uganda — Passengers travelling on participating long-distance buses can now access accident insurance protection worth up to Shs10 million at a cost of just Shs1,000 under a new passenger micro-life insurance product introduced by NIC Life Assurance Company Limited.
The product, known as Route Cover, provides passengers with life, total permanent disability and hospital cash benefits following an insured accident.
NIC Life unveiled the product at Skyz Hotel in Naguru on Thursday, where it was presented to members of the Uganda Bus Owners Association (UBOA) as the insurer seeks to strengthen collaboration with transport operators on passenger welfare and risk management.
Under the cover, a passenger is entitled to Shs10 million in the event of death, Shs10 million for total permanent disability, and Shs50,000 in hospital cash per day for up to 20 days following an insured accident.
The product is intended to ease the financial burden families may face after road crashes, including medical expenses, loss of income, disability and funeral costs.
“Insurance must work when people need it most. Route Cover puts meaningful financial protection within reach of ordinary passengers at an affordable cost, while giving families a financial safety net when an unexpected accident occurs,” said Allen Amoko, Chief Executive Officer of NIC Life Assurance Company Limited.
Unlike conventional insurance policies that often require annual premiums, Route Cover is linked directly to a passenger’s journey.
Under the proposed model, passengers would purchase the cover alongside their bus ticket, provide their details digitally and receive immediate confirmation.
NIC Life says the product is designed to complement, rather than replace, existing Motor Third Party and Comprehensive Motor Insurance, by providing additional passenger-specific benefits following an insured accident.
“Passenger protection should be part of the journey. We are working with transport operators and stakeholders to build a practical model that makes insurance more accessible to the travelling public,” Amoko said.
The initiative comes as Uganda continues to face the human and economic costs associated with road crashes.
While road safety measures largely focus on preventing accidents, victims and their families can continue to face financial difficulties long after a crash.
A passenger who suffers permanent disability, for example, may lose their source of income while also incurring medical expenses, while the death of a family breadwinner can leave relatives struggling to meet basic household needs.
Apollo Kashanku, Assistant Commissioner for Transport Regulation and Safety at the Ministry of Works and Transport, said passenger protection should extend beyond road safety to include financial support when accidents occur.
“Our responsibility does not end with ensuring that passengers reach their destinations safely. When accidents occur, we must also consider the financial burden placed on victims and their families. Affordable protection such as Route Cover can provide a critical safety net at a time when families are most vulnerable,” Kashanku said.
He urged transport operators and other industry stakeholders to support initiatives aimed at strengthening passenger welfare.
“A Shs1,000 cover may appear small, but the protection it provides can be significant when a family is facing uncertainty. We need solutions that put passenger welfare and financial resilience at the centre of Uganda’s public transport system,” he said.
NIC Life is currently engaging bus operators and other stakeholders on the implementation model, including passenger registration, premium collection, pilot arrangements and eventual rollout.
Amoko said the initiative is intended to make insurance more relevant and accessible to ordinary Ugandans.
“Our ambition is not simply to sell more insurance. It is to make insurance matter more in the lives of ordinary Ugandans. If Shs1,000 can provide meaningful financial support to a passenger or family at a moment of crisis, then we have moved insurance closer to the people it is meant to protect,” he said.
As Route Cover moves towards a pilot phase, NIC Life says the product is built around a simple proposition: a small contribution during a journey that could provide significant financial support when the unexpected happens.
