The executive director Uganda Insurance Regulatory Authority (IRA) has asked government to scrap off the police medical assessment fees in order to ease claim settlements.
Mr Ibrahim Kadunabbi Lubega said many Ugandans, especially low income earners, find it hard or even impossible to pay Shs70,000 to get the medical report, a prerequisite that insurers use to settle claims.
“The medical assessment report fees should be scrapped off or made cheap to enable people get their claims,” Mr Kadunabbi said last week at IRA offices in Kampala.
He was responding to complaints mainly from bodaboda cyclists who said they hardly claim anything despite paying for Motor Third Party Insurance (MTP) which is provided for in the Third Party Risks Act of 1989.
The Act requires every vehicle with the exception of government automobiles to pay MTP.
It caters for victims of accidents on the road.
Mr Kadunabbi said he had directed all insurance companies to educate their clients about each cover they intend to buy before signing any agreement.
Uganda has more than 30 insurance companies, all competing for less than 1 per cent penetration of the sector.
The officer in charge of traffic investigation Wandegeya, Mr Emmanuel Buyungo, said although Sh70,000 is much to get a medical report, even those who can afford it do not know guidelines on how to get compensation.
Mr Buyungo appealed to bodaboda cyclists to maintain discipline on the road to avoid accidents and its subsequent costs involved in treatment or death. It is estimated that Mulago hospital spends about Shs1.2m on each accident victim.
A five-year (2008-2012) injury and fatality trends report indicated that 3,043 motorcyclists were injured in accidents in 2012, a significant increase from 1,795 cyclists injured in 2008. Kampala is estimated to be having over 53,000 boda bodas.