Minister of State for Transport, Fred Byamukama, has strongly criticized the fraudulent practices observed in the implementation of motor third-party insurance by insurance companies.
Speaking before the health committee, chaired by Koboko Municipality MP, Dr. Charles Ayume, which was conducting an inquiry into the effectiveness of third-party motor vehicle insurance, Minister Byamukama highlighted the significant gaps in coverage that leave many victims of motor accidents unprotected.
He revealed that an investigation following the integration between the Ministry of Works and Transport’s Automated Licensing System and the Insurance Regulatory Authority uncovered approximately 805 forged documents from the Common Market for Eastern and Southern Africa (COMESA).
Minister Byamukama expressed dismay at insurance claim officers’ tactics aimed at minimizing costs for their companies, often resorting to importing various clauses and arguments that unjustly deny compensation to victims of road accidents.
Moreover, he criticized insurance companies for their centralized approach to settling claims, emphasizing that all claims are processed at head offices, which creates barriers for victims in remote areas to access compensation.
To address these issues, Minister Byamukama proposed the establishment of a Road Accident Fund tasked with managing compensation for injuries or fatalities resulting from road crashes. He also called for a review of existing laws to increase compensation amounts and streamline the claims settlement process, aiming to enhance coverage and reduce bureaucratic hurdles.
Committee Chairperson, Dr. Charles Ayume, suggested allocating funds generated from motor vehicle third-party insurance to the health sector, specifically for the treatment of motor accident victims in intensive care units.
