Ugandan Migrant Workers Reject Exploitative Insurance Scheme: Demand for Comprehensive Social Protection Grows

Ugandan migrant workers have raised an impassioned alarm against what they describe as an exploitative insurance scheme spearheaded by SPADE Insurance and NIC Insurance Brokers. In a powerful collective statement, they declare: “We are not commodities for export to be insured without social protection. We demand dignity, transparency, and real support—not corporate schemes that siphon off our vulnerability.”

The heart of the workers' grievance lies in the stark difference between insurance schemes and comprehensive social protection programs. While insurance operates on the premise of contributory premiums in exchange for payouts only upon specific events (such as injury or illness), social protection encompasses a broader safety net—blending insurance, social assistance, welfare support, and labor policies aimed at protecting vulnerable workers across all stages of their employment journey, at home and abroad.

Understanding the Problem: Insurance in a Vacuum

The SPADE Insurance-led program requires migrant workers to pay upfront premiums. Yet, if no claimable event occurs—such as medical emergencies or job loss—the workers receive no refund or financial benefit. This model, workers argue, treats their economic vulnerability as a commodity, with no regard for the social and economic insecurities they face while employed in foreign labor markets.

In contrast, comprehensive social protection systems, such as those implemented in progressive migrant labor-sending countries, include long-term savings (provident funds), pension schemes, access to affordable remittances, and assistance in times of economic or social distress—regardless of the occurrence of a claimable event.

Why Ugandan Migrant Workers Are Rejecting the Current Scheme

The Federation of Ugandan Migrant Workers' Associations (FUMWA), the umbrella body representing migrant workers across the Gulf region, has outlined key concerns:

Lack of Transparency and Representation:

Workers have no voice in the administration of the scheme. They are not represented in the governance structures, raising concerns over how premiums are managed and how claims are assessed.

Non-Refundable Premiums:

If a migrant completes their contract without incident, their insurance contributions are lost—no refund, no interest, no acknowledgment of their financial input. Profit-Driven Model: SPADE Insurance and NIC Insurance Brokers operate for profit, leading many to question the ethical implications of commodifying migrant vulnerability for financial gain.

Weak Claims Processing Mechanisms:

With no independent monitoring or verification overseas, workers fear arbitrary rejection of claims and lack of recourse in the event of disputes.

Recruitment Agency Exploitation:

Workers are further burdened with charges ranging from $30 to $70 per job vacancy under the guise of “insurance,” with no clear explanation of how these fees are used.

The Workers’ Demands:

Dignity Over Profit Ugandan migrant workers, backed by FUMWA and civil society partners, are not rejecting protection—they are calling for a just and dignified system.Their demands include:

Establishment of a Provident Fund: A saving scheme where workers’ contributions are invested and returned with interest, providing long-term financial security, irrespective of whether they file an insurance claim. Integrated Social

Protection Programs: A package that includes health coverage, pension benefits, legal assistance, re-integration support, and family welfare benefits—bridging both contributory and non-contributory systems.

Transparent Governance and Oversight:

Migrant worker representation in decision-making, independent audits, access to financial reports, and accountability measures for claims processing.

Enforcement of Bilateral Labour Agreements (BLAs):

The government must first implement existing agreements with labor-receiving countries before launching new schemes that lack enforcement muscle.

Hard Questions for SPADE Insurance and the Ministry of Gender FUMWA and its partners are publicly demanding answers to critical questions:

Who represents migrant workers in the scheme’s governance?

How are premiums managed, and can workers see audited reports?

Why are premiums non-refundable, and what return do workers get?

What safeguards exist to protect against fraudulent claims rejection?

How are disputes handled, especially when they occur outside Uganda?

Why introduce a new scheme when existing protections are under-implemented?

A Call to Action:Stand for Justice, Not Exploitation

Migrant workers are not insurance statistics or financial risks to be assessed for profitability. They are citizens whose labor sustains families, builds foreign economies, and contributes significantly to Uganda’s GDP through remittances.

The current insurance model risks becoming another predatory layer in the already challenging landscape of overseas employment. It may further impoverish the very people it claims to protect. The Ugandan government, Ministry of Gender, Labour and Social Development, and related stakeholders must urgently reconsider this direction.

Instead of mandatory premiums with no accountability, Uganda needs a rights-based social protection framework for its migrant workforce—one that honors their contribution and supports them across all stages of migration.

Ugandan migrant workers, through FUMWA, are inviting the public, media, civil society, and international labor organizations to join the campaign for fair and transparent social protection.

Federation of Ugandan Migrant Workers' Associations (FUMWA) Phone: 0200911519

Reject exploitation. Demand dignity. Stand with Uganda’s migrant workers.