Insurers want motor third party coverage increased

ROAD CARNAGE  INSURANCE

Insurance companies have said the poor performance of the compulsory motor third-party risk insurance is making victims of road carnage more vulnerable, calling for the amendment of its legal framework.

Motor third-party insurance is a statutory requirement provided for under the Motor Vehicle Insurance (Third Party Risks) Act, 1998 to protect motorists and other road users in the event of an accident except for the car owner and the insurance company.

However, according to the Uganda Insurers Association (UIA), the performance of third-party class insurance under the Motor Vehicle Insurance (Third Party Risks) Act 1998 is not satisfactory due to its enforcement.

"The poor performance of the said insurance class is as a result of lack of proper enforcement systems class, poor coverage of vehicles having the required insurance and poor compensatory records despite the costs involved," said UIA's CEO, Paul Kavuma.

He added that because the law caters for a maximum liability limit of sh1m, "there has been a poor intake of the motor third-party insurance because for all intents and purposes this money becomes insufficient in some cases, therefore, there is need to amend the law to increase in liability limit."

Kavuma was presenting UIA's position on the Traffic and Road Safety Act 1998 (Amendment Bill) to the parliamentary committee on physical infrastructure yesterday.

Noting that because the country's legal regime forbids any person to use a motor vehicle on the road without motor vehicle insurance including the third-party class but only 40% of the registered vehicles have the required insurance, Kavuma argued that it is imperative that amendment of the Traffic and Road Safety Act, 1998 should motivate review of the Motor Vehicle Insurance (Third Party Risks) Act, 1998.

"We agree that the law should be amended to include insurance coverage for everyone in and on the insured vehicle including drivers of these cars caught in the accidents, regardless of fault.  Whether it's overloading or reckless driving, whoever is to blame doesn't matter because this is the life that we are talking about so insurance should cover them and this should be in addition to the owner and his employees," said Kavuma.

He said the aforementioned will improve the settlement of claims and reduce litigation costs because the claims will be paid, "regardless of who is at fault which will as well increase sector legitimacy."

The proposals fly in the face of rampant road accidents that last month saw heavy-goods trucks and passenger vehicles claiming over half a million lives and injuring several in just weeks.

In one of the most publicized incidents, a driver of an unidentified petroleum truck in transit to Kasese, lost control of the fuel tanker, ramming into a passenger minibus and parked Toyota Premio at Kyambura stage sparking an inferno that spread to nearby shops, leaving at least 21 people burnt to ashes and several others injured.

On the same day, another road accident involving a Y.Y bus and a taxi claimed the life of 10 people in Namutumba district, eastern Uganda. This was the second accident involving the Y.Y coaches in less than a week on the same highway killing two people and injuring 45 others.

Questions of who is responsible for compensating the victims were left hanging but according to Kavuma the underwritten insurance companies have already dispatched teams to investigate incidents and brief car owners on how they can help their victims.

The chairperson of the committee George Kumama (Bbaale County) expressed optimism that amending the laws to provide for accident preventive mechanisms will encourage road safety