Any insurance policy usually has two parties – the insurance company and the insured or policy holder. Anyone else who is not a party to the insurance policy is referred to as a Third Party in the insured policy.
Motor third party insurance (MTP)
Third-party insurance is an insurance policy got for protection against the claims of another (third party). One of the commonly known types of third-party insurance is in the automobile circles.
Fred Kaahwa Bigirwa of UAP Insurance, points out that in Uganda, motor third party insurance (MTP) was put in place by the 2002 Act of Parliament where every vehicle was required to have insurance for the third party, hence the name.
“They realised that the passenger or someone crossing the road, in case of accident could not get treatment without insurance,” he explained.
Ambrose Kibuuka, the general manager commercial at Sanlam General Insurance, further explains that this insurance policy covers the insured’s legal liability to third parties for bodily injury and or death and property damage occasioned by the insured’s motor vehicle.
“The insurance company compensates the third parties on behalf of the insured. However, in the event that the insured’s own car gets damaged in the accident, MTP does not cover the repair costs,” he adds.
Kaahwa explains that the car owner is a first party, the driver is a second party while the passengers or anyone else hurt by the vehicle are the third party. Kibuuka says the MTP insurance cover could be statutory or enhanced.
“Statutory MTP insurance covers the insured up to the limits stipulated in the law and is the minimum level of cover required of any vehicle by law in Uganda. On the other hand, enhanced MTP insurance provides cover at higher limits of liability compared to those under the statutory cover.
The statutory MTP insurance only covers bodily injury and or death up to a limit of Shs1m per person and Shs10m in aggregate in the event that many people are injured in the accident,” he explains.
He adds that clearly, these limits are inadequate and efforts are under way to raise them to an amount that can cover the real costs incurred by third parties in the event of an accidental injury involving an insured vehicle.
Third party comprehensive vehicle insurance
This insurance plan covers both the third party liabilities covered under MTP coupled with any damage risk to the insured’s vehicle. Therefore, comprehensive offers a lot more such as in the event of material damage, say knocking a building or destroying someone’s goods, if the vehicle is stolen or some of its parts are stolen or if it overturns.
“That is coupled with fire accidents that the vehicle maybe involved in,” Kaahwa says.
He adds that if the vehicle is involved in an accident in a far off place, the insurance company will incur the transport costs to get it to the garage that the owner mentioned in the policy forms filled prior to purchasing the policy.
“However, it does not cover mechanical problems but any damage that say, failure to brake may cause,” Kaahwa clarifies.
Payments in this cover, according to Kaahwa are Shs5m and above.
“Total agreements can go up to Shs50m in aggregate in the event that many people are injured in the accident,” he says.
Know your road signs
Because road signs are an important aspect for drivers, we will review one each week.
Slippery road sign
The loose chippings road sign is placed in areas with loose gravel that is to say marram roads or on roads that are under construction. Just on the look the road sign shows loose chippings or gravel flying in the air and this could be dangerous for the other road users especially pedestrians or the loose gravel can hit and break car windows or wind screens.
According to Moses Lukwago a driving instructor , the road sign alerts the driver to reduce speed because it is when someone is driving at a high speed preferably above 50kmph that the loose chippings start flying high and can in the end cause damage to other drivers cars or even inconvenience other road users like the pedestrians.
He says this road sign is mainly used on roads which are under construction but at the same time being used by motorists therefore they are mainly temporary road signs.