UIA takes motor third party sensitization drive to Eastern Region

KAMPALA - The Uganda Insurers Association (UIA) has embarked on a week-long Eastern Region sensitization tour with the aim of creating awareness about uptake Motor Third Party.

The tour that started with Busia and Malaba also seeks to ascertain the challenges insurance agents face as they sell motor third party insurance to motorists in the region.

According to Gilbert Emojong, Technical Assistant - Non-Life Insurance at UIA, motorists are yet to fully adhere to the mandatory Motor Third Party insurance cover policy.

“UIA is pushing to create awareness and we also want to speak with agents to see how we can support them. This tour will also visit Mbale where we expect to hold a meeting with police bosses to agree on how to enforce the law together,” Emojong told the New Vision.

Recent figures indicate that less than 1 million vehicles have Motor Third Party yet there are more than 2 million vehicles on the road.

He explained that some of the agents operating at Busia and Malaba borders have decried the continuous duplication of motor third-party stickers by some Kenyans and then flood them at the border points to sell cheaply.

This is also coupled with some foreign vehicles entering Uganda without the local motor third-party stickers issued in Uganda as required by the law.

“One of the things we have discussed with the agents is the tendency to sell stickers cheaply to foreign motorists and this is done offline. This means that we cannot track the sales on the system. We have told them to ensure all transactions are done on the system for tracking purposes.”

Motor Third Party policy is a type of insurance cover where the insurer offers protection against damage to a third party inflicted by the policyholder. The Act provides for compulsory insurance against third-party bodily risks in respect of the use of vehicles.

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.

According to the Traffic and Road Use Act 1998, refusing or failing to pay for third-party insurance is illegal in Uganda.

As such, driving without valid third-party insurance can result in a fine of up to shs100, 000, imprisonment for up to two years, or both. This law ensures that vehicle owners are responsible and accountable.

Recently Jonan Kisakye, the Uganda Insurers’ Association (UIA) chief executive officer while speaking to New Vision highlighted that although in 2023 just over 550,000 units were recorded, the coverage levels remain inadequate.