6 November 2009
editorial
Kampala — THE Motor Third Party Insurance policy was established to protect vehicle owners and casualties from sudden costs after traffic accidents. Motorists are required to buy an annual premium from an insurance company which is then obliged to pay compensation to the victims.
However, many people do not know how it works. They often pay the accident victims from their pockets. Some insurance companies play delaying tactics to frustrate claimants and in the end it is insurance companies which pocket free money.
For Ugandans to start benefiting from the policy, the Insurance Commission should direct insurance companies to educate the public about how their clients can access compensation. They should also furnish the Uganda Insurance Commission with detailed, annual reports of compensations.
The companies should also be given a time frame within which to conclude accident investigations and pay victims. Claimants should be given an easier channel of forwarding complaints against insurance companies that unjustly refuse or delay client compensation.
To be meaningful, the maximum compensation limit should be raised even if it means increasing annual premiums because the sh1m limit set in 1989 has been overtaken by inflation.
Police should be sensitised about Third Party insurance so that they advise people on the right procedures instead of coercing motorists to pay the victims.
The sh50,000 that victims pay to get a Police report is prohibitive and should be scrapped. Government should find alternative ways of raising money.
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