Why motorists should embrace new digital motor insurance sticker

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OPINION

By Mariam Nalunkuuma

In recent years, technological innovation has transformed many sectors, and the insurance industry is no exception.

The latest of the digital revolution in the industry is the transition from the traditional Motor Third Party (MTP) insurance system to a digitised system of issuing motor insurance stickers.

The introduction of the digital motor insurance system means that motorists plying Ugandan roads no longer have to print their motor insurance certificates and stick them on the windscreens as it has been. Instead, upon payment, a reference number is issued, which can be used to generate a digital sticker. While motorists may still choose to print the sticker for their convenience, doing so is no longer mandatory

Motorists can pay for their MTP insurance using mobile money platforms, like MTN line (*165*4*5*5#) and Airtel line (*185*7*6*1#) and follow the prompts.

The digitised system took effect on October 1, 2025, following the successful completion of a three-month piloting phase by the Insurance Regulatory Authority of Uganda (IRA) in partnership with the Uganda Insurers Association (UIA) and Uganda Traffic Police.

This move will not only modernise the system but also streamline the MTP insurance process, strengthen the security of insurance stickers by reducing the risk of counterfeit stickers and fraud in the system and improve efficiency by eliminating manual processes and enabling faster, more reliable verification.

This new digitised system will enhance user experience by making it easier and more convenient for motorists to access and manage their MTP coverage digitally, and boost compliance by encouraging more motorists to purchase valid MTP insurance through an accessible and transparent system. While every motorist on Ugandan roads is required by law to have an MTP, compliance has been a big challenge, partly due to the analogue system which has been in use.

The Ministry of Works and Transport 2024 report notes that while there are an estimated 2,185,203 motorists on Ugandan roads, only about 600,000 have their cars insured with Motor Third Party.

Furthermore, the digitised system is expected to build trust and confidence by promoting greater transparency in insurance processes. With real-time verification, standardised procedures, and reduced opportunities for fraud or manipulation, this new system shall allow both motorists and enforcement agencies (traffic police) to easily confirm the authenticity of insurance coverage. The move to digitised motor insurance stickers also aligns with the government's broader drive towards a digital economy, including the transition to digital services in various sectors, including insurance.

This digital transformation marks a significant step toward improving compliance from the insurance sector and shall make it convenient, easier and more transparent for motorists to purchase valid Motor Third Party (MTP) insurance. Through a more accessible and efficient digital system, verification of insurance status shall also become faster and more reliable, helping to build a credible and trustworthy insurance sector.

Just like the new integrated local marine insurance portal, where traders importing goods to Uganda are now getting localised insurance protection via an online platform, this shift will also streamline operations for both insurers and consumers, reduce reliance on paperwork, and enhance accountability across the industry.

As we approach the festive season, a time when road traffic typically increases and the risk of accidents is higher, it becomes even more important for motorists to ensure they are adequately insured and compliant with the law. The new digital motor insurance system makes it easier, faster, and more transparent to purchase and verify valid Motor Third Party (MTP) insurance.

This transformation shall enhance safety and accountability on our roads, especially during the busy holiday period. By reducing paperwork and enabling instant verification, the system will support faster response in the event of an incident, protecting both motorists and other road users.

Motorists across the country are encouraged to embrace this positive change. Doing so during this festive season will not only give you peace of mind but also contribute to safer, more efficient, and more responsible road usage for everyone

The writer is Manager Corporate Affairs, Insurance Regulatory Authority of Uganda