Photo: Tumwinekenneth, Wikimedia Commons, CC BY-SA 4.0Motor insurance in Uganda
Third-party cover and its limits
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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.
How much third-party insurance costs
The premium is fixed by the Second Schedule of the third-party regulations (S.I. 214-1), for the statutory limits above:
| Vehicle | Premium a year (UGX) |
|---|---|
| Private car, own or family use | 21,910 + 1,000 per passenger above 5 (driver included) |
| Private car, company use with an employed driver | 27,390 + 1,000 per passenger above 5 |
| Motorcycle over 50 cc to 150 cc / over 150 cc to 300 cc | 3,915 / 6,520 |
| Taxi (PSV) up to 2,000 cc | 32,605 + 3,915 per passenger seat |
| Goods vehicle up to 1,500 kg, own goods / for hire | 18,260 / 27,390 |
Every class, from buses to tankers, with worked examples: how much third-party insurance costs in Uganda. To pay, dial MTN *165*4*5*5# or Airtel *185*7*6*1# — step by step in paying third party on Airtel. For cover of your own car, see what comprehensive insurance costs.
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.
How much is motor third party in Uganda?
UGX 21,910 a year for a private car used by its owner or family, UGX 3,915 for a motorcycle of 51–150 cc and UGX 32,605 plus 3,915 per seat for a taxi up to 2,000 cc (S.I. 214-1, Second Schedule).
What is the offence of driving without third party insurance in Uganda?
Section 2 of the 1989 Act: a fine of up to UGX 100,000, up to two years in prison, or both, plus 12 months' disqualification from holding a driving permit unless the court finds special reasons.
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#.
Sources
- Motor Vehicle Insurance (Third Party Risks) Act, 1989 — ULII
- Motor Vehicle Insurance (Third Party Risks) Regulations, S.I. 214-1, Second Schedule (premium rates) — IRA Uganda
- IRA Uganda — 2024 Annual Insurance Market Report
- IRA Uganda — approved minimum premium rate guidelines, 2019
- The Independent, 2 July 2025 — Uganda Re launches USSD COMESA yellow card verification