The policy covers all types of vehicles operating on public roads such as:
- Scooters & Motorcycles
- Private cars
- All types of commercial vehicles
- Motor Trade (vehicles in show rooms and garages)
As per the Motor Vehicles Act 1989 it is mandatory for every owner of a vehicle operating on public roads to take out an insurance policy that covers the amount which the owner becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury or damage to property. A Certificate of Insurance must be carried in the vehicle as a proof of such insurance.
Four types of cover are available:
1. MOTOR THIRD PARTY (STATUTORY COVER)
Compulsory statutory cover for all motorists insuring against death and/or bodily injury for third parties. The policy covers the vehicle owner’s legal liability to pay compensation for death or bodily injury to a third party person.
2. MOTOR COMPREHENSIVE
Offers cover against accidental loss or damage to vehicles including loss or damage resulting from fire or theft. This policy covers loss or damage to the insured vehicle and its accessories due to:
- Fire, explosion, self-ignition or lightning
- Burglary, housebreaking or theft
- Riot and Strike
- Malicious Act
- Terrorist Act
- Earthquake (Fire and Shock) Damage
- Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone and Hailstorm
- Accidental external means
- Whilst in transit by road, inland waterway, lift, elevator or air
- By landslide/Rockslide
The policy also pays for towing charges from the place of accident to the workshop. The important exclusions under the policies are:
- Wear and tear, breakdowns
- Consequential loss
- Loss when driving with invalid driving license or under the influence of alcohol
- Loss due to war, civil war, etc.
- Claims arising out of contractual liability
- Use of vehicle otherwise than in accordance with “limitations as to use” (e.g. private car being used as a taxi)
3. MOTOR THIRD PARTY PROPERTY DAMAGE
Protects against liability for damage to the property of others.
4. MOTOR TRADE
Covers “stationary” vehicles in show rooms, and those undergoing repair in garages against accidental damage, fire and theft including malicious damage.
WHO CAN TAKE THE POLICY?
Any vehicle owner whose vehicle is registered in his/her name with the National Transport Authority in Uganda.