The Insurance Regulatory Authority of Uganda (IRA) has called on taxi drivers to take out car insurance, especially for third-party liability, in order to protect themselves against unforeseen risks and protect their loved ones. This call was made by the Director General of the IRA, Alhaj Kaddunabbi Ibrahim Lubega, during an awareness session held at the Insurance Tower with members of the Uganda Taxi Operators Federation (UTOF).
This initiative aimed to better explain how third-party liability car insurance works and inform drivers about ongoing reforms. The goal is to increase the rate of enrollment in this mandatory insurance.
The IRA, in collaboration with other stakeholders, is currently working on amending the 1989 Third Party Insurance Act. The amendment project aims to expand the scope of coverage, which currently only covers bodily injury or death caused to third parties (pedestrians, passengers, other road users), to now include drivers as well. The system would also move towards fault-free compensation.
The maximum compensation amount, currently limited to one million Ugandan shillings (UGX) per person, is expected to be increased to 10 million UGX (approximately 2,630 dollars). Insurance premiums will be adjusted accordingly to reflect this increase in limits.
Furthermore, the amendment includes the removal of physical stickers to be placed on vehicles, which will be replaced by a digital system: it will only be necessary to enter the registration number on a mobile phone to access insurance information.
Mariam Nalunkuuma, Director of General Affairs at the IRA, encouraged participants to become information ambassadors and to encourage their fellow drivers to take out this essential insurance, a true safety net for both drivers and the public. She specified that insurance stickers can be obtained from any licensed non-life insurance company.
