Uganda Insurers Association (UIA) says motorists are yet to fully respect the Motor Third Party insurance cover policy despite being mandatory to all.
According to Juliet Igonu the Technical Manager-Non life insurance at UIA says, recent figures show that less than 1 million vehicles have Motor Third Party yet there are more than 2 million vehicles on the road.
UIA is now pushing to create awareness amongst motorists across the country under a campaign Simbula with Motor Third Party Insurance. The campaign is to run in partnership with the Ministry of Works and Transport.
Motor Third Party policy is a type of insurance cover where the insurer offers protection against damage to a third-party inflicted by the policy holder. The Act provides for compulsory insurance against third party bodily risks in respect of the use of vehicles.
“Unfortunately, most motorists still do not have these covers. We are hoping to work with the Ministry of Works and Transport effective June to create awareness.” Igonu notes.
The arrangement will ensure that all those operating Public Service Vehicles (PSV) are recorded in the system to ascertain the number of policy holders. This will be done through electronic payment.
“Insurance companies have in the past been accused of not sensitizing motorists and these campaigns are expensive but we are doing our best. This year we are targeting Eastern, Northern and Western Uganda. We believe this will enable us to grow the number of policy holders.”
The campaign will among other things see UIA hold talk shows and activations where motorists will interact with officials and share knowledge about Motor Third Party Insurance.
While the policy does not provide any direct coverage to the insured, it indirectly covers the financial responsibility they would have borne out of pocket to compensate accident victims.
Motor Third Party Insurance among other things gives you peace of mind knowing that you have sufficient financial protection against the damage you may cause to other people in an accident.