Uganda Insurers Association (UIA) has issued new motor third party (MTP) insurance stickers for transit cars, private cars, motor cycles and commercial vehicles such as buses.
According to an advert published in Daily Monitor, UIA says the new stickers bearing new features replace old stickers effective January 1, 2018.
UIA chief executive officer Miriam Magala, says the change is part of a process to minimise fraud.
“We change the stickers every three years mainly for security purposes to make sure they are not forged. We have had cases of forgery which we have addressed with the police,” Ms Magala told this paper in a phone interview yesterday.
As per UIA, MTP insurance was introduced by the Motor Vehicle Insurance (Third Party Risks) Act 1989 to make provision for compulsory insurance against third party risks in respect of the use of vehicles.
The premium ranges from Shs3,260 to Shs235,000.
Therefore, one cannot use a car without this insurance and that if the third party (any other person who may be affected by the contract between the insurer and insured and is not an employee or immediate family member of the owner of the vehicle) is injured on the road, they should be compensated.
A report by Daily Monitor last year indicated that at least 9,572 people were killed in road accidents in the last three years countrywide.
While speaking at the end of year CEOs’ breakfast meeting held in November last year, Insurance Regulatory Authority (IRA) chief executive officer Ibrahim Lubega Kaddunabbi, said people are forging MTP stickers which they use to go through the traffic system seamlessly.
In light of the fraud, IRA is working on plans to adopt an online MTP platform.
IRA is also seeking the amendment of the motor third party Act to address the emerging fraud.
UIA cautions the public against accepting old stickers after December 31, 2017.