Influence of awareness on the usage of motor third party insurance: a case study of Kampala district

Motor third party insurance was established in Uganda in 1989 as a social policy to protect motorists and other road users (third parties) in the event of an accident. However, reports show that only a few motorists filed claims to their insurers for compensation despite being involved in road traffic accidents.

To establish whether motorists' awareness has an influence on the usage of motor third party insurance.

This was a cross-sectional using both qualitative and qualitative methods. Data was collected from 384 motorists in Kampala district using structured and semi-structured questionnaires administered face-to-face. We also collected data from key informants (insurers, insurance regulators as well as enforcers - traffic police officers); and carried out desk review of motor third party insurance documents in Uganda.

The results showed that 8 out of 10 motorists in Kampala did not understand motor third party insurance with 95.3% having no knowledge of their rights as policy holders and 87.8% having no knowledge of their obligations when involved in an accident. Majority of the motorists involved in accidents never made claims to their insurers for compensation.

The level of awareness among motorists concerning motor third party insurance was low which significantly affected their ability to file claims to their insurers following an accident. We recommended that motorists and the general public be educated on third party motor insurance.