Vehicle insurance is a contract that involves parties. The first party is the owner of the vehicle, the second is the Insurance provider, and the third party is any other person who may be affected by the contract and is not an employee or immediate family member of the first party.
Why is 3rd Party insurance compulsory?
This form of insurance is governed by THE MOTOR VEHICLE INSURANCE (THIRD PARTY RISKS) ACT of Uganda. Under Section 2 of the act, payment of such insurance is compulsory for every vehicle except those owned by the Government. In case of a vehicle with a valid 3rd party insurance getting involved in an accident, it is not the duty of the vehicle owner to pay up the victim(s) of the accident unless the accident was caused by the owner or driver’s negligence. The vehicle owner should instead inform the insurance company which will have to investigate and pay compensation to the injured or dead person. Related Article: MTN Uganda and MMI Holdings launch aYo a mobile based micro insurance product with Hospital and Life cover
3rd Party ku Ssimu
Jubilee Insurance recently partnered with Afrisafe Risk Consultants Uganda Ltd – an Insurance and Risk consulting firm offering insurance consulting services – to minimize the hurdles involved in processing Motor 3rd Party insurance services via mobile phones. This was through the launch of Motor Sure, a payment mode through which motorists get to pay for 3rd party insurance using their mobile phones, hence the name 3rd party ku ssimu (meaning third party on mobile).
Buying motor 3rd party insurance on your phone
3rd Party ku Ssimu is a service for vehicle, bike, and boda-boda motorists to purchase their 3rd party motor insurance off the phone by simply dialing through a USSD code 21022# with their mobile phone. This service lessens the burden on motorists buying 3rd Party, the 3rd party is delivered within an hour, and it reminds motorists when their insurance expires. Image: AfriSafe
