Mandatory motor insurance offers protection for public transport accident victims

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OPINION

By Gilbert Emojong

Under Uganda’s current insurance framework, it is a legal requirement for every vehicle to possess a basic Motor Third Party (MTP) insurance policy.

While this serves as a minimum compliance tool, it is painfully inadequate in addressing the realities of public passenger transport.

The MTP policy, by law, provides only sh1m per person per occurrence and a maximum aggregate of sh10m per accident, regardless of the number of victims. What is even more worrying is that this cover does not extend to the driver or vehicle damages.

In the context of large passenger service buses carrying dozens of passengers, such compensation limits are not just outdated; they are unjust. I am not sure of the covers that the buses recently involved in a tragedy accident on the Gulu Highway where more than 40 people died had.

But what I am sure of is for all the passengers who lost their lives, they are only entitled to an aggregate compensation of 20million from the accident caused by two buses in case they had an MTP cover.

The aftermath of a fatal bus accident involving 40 or more passengers may have exposed how grossly insufficient the basic MTP cover can be. Victims and their families may have been left to grapple with hospital bills, permanent disabilities, loss of breadwinners, and emotional trauma, all for a token compensation that cannot restore dignity or sustain livelihoods.

This is why government and the relevant regulatory authorities particularly the Ministry of Works and Transport in consultation with other stakeholders urgently need to consider introducing a regulation mandating comprehensive insurance cover for all passenger service buses operating in Uganda or working with the insurance sector to craft a product for passenger service buses.

Comprehensive insurance policies, unlike MTP, offer far broader protection. They cover passenger injury or death, vehicle damage, third-party liabilities, and even the driver and conductor.

The compensation limits are significantly higher, meaning accident victims receive fairer and more realistic settlements. Additionally, comprehensive policies promote responsible fleet management, safer driving practices, and overall industry discipline, since insurers closely monitor risk profiles and vehicle maintenance standards.

Opponents might argue that mandatory comprehensive insurance will increase operating costs for bus owners, but while this could be true in the short term, this cost is minimal compared to the long-term social and economic burden of under-compensated accident victims.

Moreover, such regulation would level the playing field across all operators, ensuring uniform compliance and fairness in the industry.

Uganda cannot continue to tolerate a system where transport operators meet only the bare minimum legal requirement while passengers bear the brunt of systemic negligence. The government owes it to its citizens to guarantee that when accidents occur as they inevitably will, victims are adequately compensated.

The writer is a Technical Assistant, Non-Life Insurance, Uganda Insurers Association (UIA)