While driving on Entebbe Road, my friend indicated within the ac¬cepted length to change the lane. Suddenly, a boda-boda cyclist rammed into his car, sustaining serious injuries.
While driving on Entebbe Road, my friend indicated within the ac¬cepted length to change the lane. Suddenly, a boda-boda cyclist rammed into his car, sustaining serious injuries. Within seconds, a mob of cyclists surrounded the car, threatening to vandalise and burn the vehicle and beat up the driver. He lost two phones and paid sh500,000.
This begs the question: “What about that Motor Third Party in¬surance sticker on his windscreen which he procured from his insur¬ance company?
Every country in the region has a law governing motoring. In Kenya, the insurance (motor vehicle third party risk) Act was passed in 1946. In Tanzania and Uganda, similar laws are also in place.
This makes it compulsory, according to Chapter 214 of the 1989 Act, Section 1-14 and 26-42 of the Constitution, for a motorist or owner of a vehicle driven on Ugandan public roads to have a policy covering third party risks. Contravention of this provision constitutes an offence and the offender is liable to a fine or im¬prisonment.
Secondly, when a Third Party policy is procured, a certificate of insurance (sticker) is issued to the insured as evidence that there is in force an insurance policy that complies with the Act which is expected to be displayed in a conspicuous and reasonable verti¬cal position behind the glass of windscreen or rear side window so as to be clearly visible at all time by daylight to a person standing in front of the vehicle or to the left rear side thereof.
Thirdly, where a policy is cancelled by mutual consent or by virtue of any provision in the policy, the certificate of insurance should be surrendered to the insurer within seven days from the date of cancellation. The insured, however, must make a statutory declaration in the certificate of insurance if lost or destroyed.
The Motor Third Party insurance policy is supposed to pay the legal liabilities of the motorist to third party bodily injuries, including death, while the vehicle is being driven on public roads.
According to the law, limit of liability /compesation should be to a maximum of sh1m.
However, there are other motor insurance covers that give a wide protection, including Third Party, with property damage exten¬sion and motor comprehensive coverage. It covers accidental loss or damage, malicious damage, theft, fire and burglary to the insured’s vehicle with extensions of wider Third Party cover, includ¬ing windscreen damages in terms of replacing it, medical expenses to insured or driver in case they are involved in an accident, tow¬ing charges or wreckage removal costs, whereby limits are negotia¬ble with your insurance company.
The insured tend to think that it is impossible to be compensated in case of a loss. However, they also need to have information on how to claim from their insurers.
In case of a loss, the insurance company should immediately be notified through a telephone, fax, e-mail, text message, visiting the insurer’s office or website.
After the insured has reported the claim, the insurer will issue a claim form and advice on the claim procedure.
In case of major accidents and those involving third parties (injury/death/property damage), the insurance company needs Police abstract and the inspector of vehicles report.
The writer is an insurance consultant and can be reached on ebyamukama@uapinsurance. co.ug
When ignorance costs the insured