Motor Third Party (MTP) Insurance is an insurance policy designed to protect motorists and other road users in case of a road crash. It compensates financial losses to third party like passengers and pedestrians when injured but doesn’t cover any property damage.
Hildah Twongire 40, a resident of Jinja is among many Ugandans who are very bitter with an old MTP Insurance law, which was enacted in 1989, but currently compensating a maximum of only Shs 1m after road crash damages, even if the victim spends over Shs 50m on her treatment.
To make it worse, the Act can reduce the amount of compensation from Shs 1m to Shs 100,000, if the victims were many in the vehicle.
The UN report says that Uganda loses about 10 people per day in road crashes mainly due to speeding, and the death toll is the highest in East African region . However according to victims, majority of them are not compensated under MTP insurance law due to slow processes , disorganization, hustle during claims and payment of very little money compared to expensive treatment incurred.
Twongire, who survived an accident in October 2019, on her way to Mbarara to buy Matooke for sale at Amber-Court market in Jinja is currently using an artificial limb after losing her right arm.
“ At 5am, we were heading to Mbarara. At Kyazanga Trading Center, our lorry truck collided head-on with a bus that was overtaking. It fell on the side and pieces of broken window glass cut my right arm into two,” she said.
“I lost a lot of blood and I paid about Shs 1m for an operation at Masaka Regional Referral hospital where my arm was amputated,” she says.
Twongire was referred to Mulago hospital, Kampala for further managed and later forwarded to Kiruddu hospital where she spent over Shs 10m on treatment for three months.
“In total I spent over Shs 15m on the treatment within three months only. I used all the capital I had for my business. I got loans and friends also contributed to save life. They cut part of my thigh and grafted the wound to cure fast,” she says.
Twongire says, doctors at Kiruddu, later connected her to Hope for Victims of Traffic Accidents (HOVITA) and Uganda Insurers’ Association (UIA) to assist her in claiming for compensation and seeking for an artificial arm.
“I started compensation process by getting medical reports, medical bills, police reports and others. After several months of claiming for police report and i couldn’t get one , I had to part with about Shs 2m to get a police report ” she said.
“However I got shocked with the compensation of only Shs 1m against a total bill of about Shs 15m, I spent on treatment and time spent,” she added.
Hussein
Ibrahim Hussein Webaale, 62, a driver with y.y coaches, also got ahead on collision in an Africot truck, in Dokolo, Lira district.
“ I spent over Shs 10m on treatment and spent two years without working. The truck I was driving had comprehensive insurance but I failed to be compensated due to unclear reasons,” he says.
IRA
Sampaul Nakhaima, the Communications officer, Insurance Regulatory Authority of Uganda says, most drivers don’t get workers’ compensation because they are employed without a contract and have no legal backing. “Workers’ compensation, is paid to the insurance company by the employers and applies where there is a valid and running formal contract,” he says.
“Also taxi and bus drivers are not compensated under MTP insurance, since they are treated as the first party, not qualifying for it. Drivers and conductors are compensated under motor comprehensive insurance,” Sampaul adds.
“Most victims are not compensated because they don’t know the right procedures of lodging compensation claims and others use fake insurance stickers,” he says.
Sampaul says, parliament is reviving The Motor Third party insurance act and they are proposing to increase the amount from Shs 1m to a figure that meets the current living standards.
“They are also proposing to amend the policy, to cover not only the third party but even the first party, which covers the driver, conductor and the rider,” he says.
Mulago hospital
Dr Michael Muhumuza, the Senior Consultant Neurosurgeon, Mulago hospital says, the current maximum Motor Third Party insurance compensation of Shs 1m is too little to the patients compared to a lot of money they spend on treatment.
“ Most road crash victims with brain damages need to be operated and the minor brain surgery costs about Shs 10m while the serious one costs about Shs 30m. Implants and medications are also too expensive,” he says.
Muhumuza calls for the Compensation Act to be review and repealed and an amendment of the old maximum compensation fee of Shs 1m to be increased to a minimum of Shs 10m at least, although in many cases victims spend more than, Shs 10m on treatment especially when they have multiple injuries on head, chest, legs and arm.
“Every week, we receive 35 to 70 road crash patients at Neuro surgeon ward, and all these patients have brain damage related cases that need expensive operations,” he said.
Orthopedic implants
According to Dr Norbert Orwotho, the clinical head directorate of Surgery, Mulago hospital, insurance companies have kept silent about compensation process that is why very few people get compensated yet road accidents are on an increase on a daily basis.
“At Mulago hospital where government offers theater, complex surgeries like spine backbone fracture, the implants for fixing it costs about $ 5,000 (Shs 20m) and when you add medication, the cost goes to Shs 35m,” he says.
Orwotho appealed to insurance companies to pay hospital bills for road crash victims since many are ignorant about claims and yet they can benefit from it when money comes to hospitals.
Bus
Ibrahim Kayondo, the secretary Uganda Bus Drivers’ Association says, due to ignorance and difficulties in claiming for insurance compensations, many victims prefer getting loans to treat themselves.
Kayondo says, most bus owners only pay for comprehensive insurance which is about Shs 75m annually for each bus but avoid paying worker’s compensation worth Shs 840,000 annually, to cover drivers. “This is why in most crashes bus companies deny drivers as their workers,” he says.
Workers’ MP
Dr Abdul Byakatonda, the Workers’ MP calls for worker’s compensation policy review like worker-man’s compensation, where some of the workers are permanently disabled and others lose lives.
UIA
Badru Bengo, the life and Pensions Manager at Uganda Insurers’ Association says, last year insurance companies collected a total of Shs 160bn from motor vehicles and they paid Shs 60bn for both MTP and Comprehensive insurance as compensation claims.
He says, since many people lost trust in insurance companies, they have started an awareness campaign which says “ if people don’t come to us claiming for compensation, let us go to them.”
“We have partnered with police and high traffic accident referral hospitals like Mulago, Kawolo, Nkozi to give us accident records of injured victims which can link us to victims and start their claims,” Bengo says.
Bengo says, in cases, where victims don’t know the number plate of the car that knocked them- they don’t compensate. Insurances compensate claims must be fully supported by all the required documents and if one document is missing, they don’t pay.
“Compensation also delays due to delays with letters of administration, investigations on fraud medical receipts to avoid inflated bills and family conflicts to choose the right person to receive payments,” he adds. Bengo says, some people are not compensated due to the real and perceived corruption at police stations since they are forced to pay for the police report.
Police
The Traffic Police Spokesperson Faridah Nampiima says, insurance companies are turning down police’s image but the fact is that they have not done enough sensitization to the public about insurance compensation claims.
“Community doesn’t know anything about insurance compensation claims. And others with some idea, prefer to squeeze suspects to compensate them with a bigger amount than insurance companies. However in traffic act, there is no law, that allows a person knocked you to pay you,” she says.
Nampiima says, most of the crashes can be avoided if all road users respect road regulations such as avoid speeding, drink driving, careless and reckless driving.
2021 Police Report
According to annual crime Police report 2021, a total of 3,75 7 people died in crashes last year while 18,305 people were injured.
The report shows an increase of 42 percent in the number of accidents registered in 2021 which was 17, 443 from 12,249 in 2020. The increase in crashes was attributed to speeding, drink driving, not wearing belts and phone use while driving.
HOVITA
Sam Bambanza, the Executive Director HOVITA says, last month, they helped Twongire to get an artificial limb worth Shs 6m. They also helped her to be compensated with Shs 1m.
“Most victims can’t afford the cost of hiring lawyers for civil compensation since they spend a lot of money on treatment, and this fails them on compensation claims,” he says.
Makerere University
Dr Olive Kobusingye, Director Trauma, Injuries and Disability programme at the Makerere University School of Public Health says, the poor planning of transport sector is the major cause of crashes.
“In Kampala, we need to plan for all motorists not only cars. Right now, its only cars have designated space on most roads. Boda-bodas invade pavements because there is no space for them, it is too risky for them to move on the main roads,” she says.
Kenya
According to Nation website, Kenyan MPs passed 2020 proposed bill on MTP insurance, accident victims to be paid a maximum of KShs 3m (UShs m) regardless of their medical costs and injuries.
Global Report
Over 1.3m people die in road crashes every year globally, with more than nine in ten deaths occurring in low and middle-income countries like Uganda.
WHO data shows, road crash is the number one cause of death among 15 to 29 year olds. In non-fatal cases, the victims are often left permanently injured, which causes a huge financial burden on the victim’s family and government. It shows over 50 million people are injured in road accidents every year globally.
WHO and UN targets to reduce road traffic deaths and injuries by 50 per cent within that decade by calling on governments and stakeholders to implement an integrated safe system approach which positions road safety as a key driver of sustainable development.
