Six-year-old Child petitions court to nullify insurance law

What you need to know:

  • The section 41 (1) of the Act empowers the minister of finance to make regulations, required by the Act to be prescribed and generally for better carrying out the provision of the Act.

KAMPALA. A six-year-old child, who lost both legs after she was knocked by a speeding car in 2010, has petitioned the Constitutional Court challenging the law on third party insurance.
The juvenile, Diana Nakasi, suing through her mother Ms Milly Nabalamba contends that Sections 2, 34 and 42 of the Motor Insurance Act are in the contravention of the Constitution.

She filed the petition jointly with rights organisation, Muslim Centre for Justice and Law challenging the insurance law in regard to the compensation for injuries sustained by a victim of accident.
The minor is seeking an order against the Attorney General (AG) for compensation and a declaration that the said provisions of the Motor Vehicle Insurance Act is inconsistent with and in contravention of Article 26(1) of the Constitution and are thus null and void.

She contends that the provision for the minister of finance to prescribe the maximum instead of the minimum liability recoverable by the third party from the insurer offends Article 79 of the Constitution. The petition arises from a September 2010 accident when Nakasi was knocked by an unidentified speeding car, which severely injured both her limbs.
She says upon reporting the case to Katwe Police Station, she was not assisted since there were no available credentials of the person and the motor vehicle that caused the accident.
“I have since incurred money amounting to a tune of Shs20 million in treatment and rehabilitation of my daughter,” the mother states in an affidavit supporting the petition.

It is alleged that since 1989, when the law was enacted, the economy has greatly changed and the minister has neglected to revise the regulations accordingly.
“The minister accordingly enacted the Motor Vehicle Insurance (Third Party Risk) Regulations section 214-1 where upon regulations 4 provides for the premium payable and the liability of the insurer per policy not to exceed Shs1,000,000 per person per accident and the aggregate liability per accident not to exceed Shs10,000,000,” reads the court documents.

The law
The motor vehicle insurance Act was enacted to make provision for compulsory insurance against third party in respect of the use of vehicle and to establish a nominal defendant council and to provide for other matters connected there with.
The section 41 (1) of the Act empowers the minister of finance to make regulations, required by the Act to be prescribed and generally for better carrying out the provision of the Act.
That section (2) provides that after consultation with the Uganda Insurance Association on and after taking into account the performance of the economy, the Minister may in the regulations prescribing rates of premium to be paid under the insurance policy and the Act.