A critical analysis of the law regulating motor vehicle insurance (third party risks) settlements to accident victims in Uganda

Abstract

This study critically examines the effectiveness of Uganda’s Motor Vehicle Insurance (Third Party risks) Act Cap 193 legal framework in indemnifying accident victims. Using a qualitative research design, the study employed purposive and random sampling to gather data from policyholders, insurance regulators, accident victims, and insurers within the Kampala Metropolitan Area. Data collection methods included in-depth interviews and thematic analysis to identify recurring patterns, challenges, and best practices. Ethical considerations such as informed consent and confidentiality were strictly observed throughout the research process. The findings reveal systemic faults in Uganda’s Motor Vehicle Insurance (Third Party risks) Act (MTPA) legal regime, including the law being outdated, low public awareness, inadequate compensation limits, delays in claims processing, and poor enforcement mechanisms of compulsory insurance requirements. The study also highlights gaps in coordination between regulatory institutions and the prevalence of fraudulent activities, which undermine efficacy and public confidence. Comparatively, regional and international models such as the COMESA Yellow Card and European Green Card systems demonstrate stronger enforcement, digital integration, and higher payout ceilings, offering useful lessons for Uganda. The research finds that Uganda’s MTPI framework, though well-intentioned, requires immediate reform to achieve its primary objectives of timely and fair victim compensation. Key recommendations include amending Cap 193 to streamline the claims process, raise compensation limits, integrating ICT in claims management, strengthening enforcement mechanisms, including all vehicles in the MTP system and improving sensitisation on MTPI rights and procedures. Such measures would align Uganda’s legal framework with global best practices, promoting transparency, efficiency, and access to justice for accident victims. Therefore, while MTPI is vital for road safety and accident victim protection, its current inefficiencies require a multifaceted approach involving legal reforms, public education, technological advancements, and more vigorous enforcement to enhance its effectiveness.

Keywords: Motor vehicle insurance