Photo: Bahnfrend, Wikimedia Commons, CC BY-SA 4.0Motor insurance in Uganda: third-party cover and its limits
The law
Section 2(1) of the Motor Vehicle Insurance (Third Party Risks) Act forbids using a motor vehicle on a road unless a third-party policy complying with the Act is in force. Government vehicles are exempt (section 2(2)).
Section 3(b) requires the policy to cover liability for the death of, or bodily injury to, another person arising from use of the vehicle — except the insured's own employees injured at work.
How much the compulsory cover pays
| Statutory limit | Amount |
|---|---|
| Per person, per accident | UGX 1,000,000 |
| All persons, per accident | UGX 10,000,000 |
| Damage to property | Not required by the Act |
These limits are set out in IRA's 2024 market report. They are low compared with the cost of a serious accident: anything above them can be claimed from you personally. IRA's 2019 minimum rate guidelines price cover above the statutory limits as the statutory premium plus 0.5% of the extra limit.
The penalty for driving uninsured
Section 2(3) of the Act provides a fine of up to UGX 100,000, imprisonment of up to two years, or both. Section 2(4) adds a 12-month disqualification from holding a driving permit unless the court finds special reasons.
Digital stickers and the COMESA yellow card
Third-party stickers are now digital and linked to the vehicle's registration number. To drive into other COMESA countries, you need a COMESA yellow card; Uganda Re, the national bureau for the scheme, lets you verify a yellow card by dialling *284*8070# (The Independent).
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Frequently asked questions
How much does third-party insurance pay in Uganda?
The statutory limits are UGX 1 million per person and UGX 10 million per accident for death or bodily injury, according to IRA's 2024 market report.
Does motor third-party cover damage to other cars in Uganda?
No, property damage is not required by the 1989 Act. It is included in comprehensive policies.
What is the COMESA yellow card?
A regional motor insurance cover that lets you drive in other COMESA member countries. Uganda Re is the national bureau and offers verification on *284*8070#.