Insurance regulator has added mobile phone as a new payment platform for Motor Third Party Insurance to supplement walk-ins and bancassurance.
The new digitised mobile payment platform, according to Insurance Regulatory Authority (IRA) will help curb fraud in the industry as well as promote convenience.
The move comes as government registers more than Shs52.5b in losses annually through forgeries of stickers.
Under the new arrangement, motorists will be able to pay for motor third party insurance through mobile phones with payments reflected at Uganda Revenue Authority.
Mr Ibrahim Kaddunabbi Lubega, the IRA chief executive officer, on Wednesday said the innovation was informed by the need to fight fraud rackets in the insurance sector.
“Motor Third Party is a class of business that has characterised by issuance of fake Motor Third Party Insurance stickers to unsuspecting public which leaves them exposed,” he said.
IRA will be working with the Uganda Revenue Authority, Ministry of Works and the Uganda Insurers Association.
Under the new arrangement, the payment platform will ensure that all vehicles are issued with genuine Motor Third Party Insurance stickers and eliminate forgeries, which have hitherto left many people exposed.
IRA also believes clients will be able to make appropriate insurance premium so as to avoid overcharges.
“The introduction of this payment platform is a sign of digital transformation in the insurance industry, given the demands of customers today, the industry is leveraging on innovation of insurtech digital platforms to improve service delivery,” Mr Lubega said.
Kampala Metropolitan Police traffic commander, Mr Norman Musinga, said third party insurance is the most difficult to enforce since forgeries are very high.
“We make arrests daily of forgeries of the third party stickers, the availed verification of [mechanisms] and smartphones will ease our work,” he said.
Postive growth: Overall, the insurance sector posted a two-digit growth trajectory, growing from Shs 859.8b in 2018 to Shs 973.58b in 2019, which represented a 13.22 per cent growth over the reporting year.