Photo: Tumwinekenneth, Wikimedia Commons, CC BY-SA 4.0How much is third-party insurance in Uganda?
The premium for every vehicle
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Private cars, pick-ups and three-wheelers
The regulations call these amounts the "recommended premium payable by the insured". Regulation 4 says the premium payable under the Act "shall be in accordance with" the Second Schedule, for a cover limited to UGX 1 million per person and UGX 10 million per accident.
| Private motor and three-wheeled vehicles | Premium a year (UGX) |
|---|---|
| Class I — own or family use only | 21,910, plus 1,000 per extra passenger above 5 (driver included) |
| Class II — company use, driven by an employed driver | 27,390, plus 1,000 per extra passenger above 5 (driver included) |
Example (our calculation): a seven-seat family car carries two passengers more than five, so its premium is 21,910 + 2 × 1,000 = UGX 23,910.
Goods vehicles, private hire and taxis
Commercial vehicles are rated by use and by weight (goods) or engine size and seats (passengers):
| Vehicle | Own goods only (Class I) | Goods for hire — general cartage (Class II) |
|---|---|---|
| Up to 1,500 kg | 18,260 | 27,390 |
| 1,501–3,000 kg | 27,390 | 40,780 |
| 3,001–6,000 kg | 40,780 | 61,625 |
| 6,001–10,000 kg | 54,780 | 82,170 |
| Over 10,000 kg | 54,780 + 2,390 per extra 1,000 kg or part | 82,170 + 4,565 per extra 1,000 kg or part |
| Passenger vehicle | Up to 2,000 cc | 2,001–3,000 cc | Over 3,000 cc | Per passenger seat |
|---|---|---|---|---|
| Class III — private hire, self-drive or tour companies | 31,950 | 36,520 | 45,650 | 3,650 |
| Class IV — public service vehicles (taxis) | 32,605 | 39,130 | 45,650 | 3,915 |
Examples (our calculation): a taxi up to 2,000 cc licensed for 14 passengers pays 32,605 + 14 × 3,915 = UGX 87,415; a 12-tonne lorry carrying goods for hire pays 82,170 + 2 × 4,565 = UGX 91,300. A vehicle used for hire must carry the insurance prescribed for that use: see taxi, bus and commercial vehicle insurance.
Buses and motorcycles (boda bodas)
| Vehicle | Premium a year (UGX) |
|---|---|
| Private bus (P.M.O.) | 45,000 + 3,915 per passenger seat |
| Public bus | 50,000 + 5,220 per passenger seat |
| Motorcycle up to 50 cc | 3,260 |
| Motorcycle over 50 cc to 150 cc | 3,915 |
| Motorcycle over 150 cc to 300 cc | 6,520 |
| Motorcycle over 300 cc to 500 cc | 9,785 |
| Motorcycle over 500 cc | 13,045 |
The schedule adds that any van seating 20 or more is rated as a bus. Example (our calculation): a public bus with 67 passenger seats pays 50,000 + 67 × 5,220 = UGX 399,740. A passenger on a boda boda is a third party and is covered; the rider is not — details in boda boda insurance.
Ambulances, tankers, farm and construction vehicles
| Vehicle | Premium a year (UGX) |
|---|---|
| Ambulance, private or public | 13,695 |
| Bullion van or fire engine, own use, up to 3,000 cc / above | 52,170 / 78,255 |
| Bullion van for public hire | 91,300 |
| Tractor / trailer confined to premises | 13,695 / 18,260 |
| Tractor / trailer not confined to premises | 22,825 / 45,650 |
| Construction equipment, light and small / heavy and large | 26,085 / 78,255 |
| Oil, gas or petrol tanker, single truck | 195,640 + 11,735 per extra 1,000 kg above 10,000 kg |
| Water, milk or cesspool tanker | 78,255 + 3,260 per extra 1,000 kg above 10,000 kg |
| Superimposed trailer, own goods / public goods | 158,510 / 234,765 |
| Motor trade plates: 1st / 2nd / 3rd pair, each extra set | 78,255 / 52,170 / 39,130 / 26,085 |
What comes on top, and what higher limits cost
- Training levy. Under section 141 of the Insurance Act, 2017 a training levy on premiums is "charged on the policyholders"; IRA's 2024 market report gives its rate as 0.5% of the premium — about UGX 110 on a private car's UGX 21,910 (our calculation).
- Higher limits. The statutory UGX 1 million per person rarely covers a serious injury. IRA's minimum rate guidelines price "full third party" as the statutory premium plus 0.5% of the third-party limits above the statutory limits — for UGX 20 million of extra limit, UGX 100,000 more (our calculation).
- Damage to other people's property is not part of the compulsory cover at all; it comes with a comprehensive policy. See what a comprehensive policy costs.
- No cash. Third-party premiums are paid by mobile money, at Pay Way terminals or at Centenary Bank and DTB branches (UIA); IRA says paying physical cash has not been allowed since 1 July 2020 (IRA guide).
What the premium buys, and the cost of not paying it
The cover pays for death or bodily injury to other people caused by your vehicle, within UGX 1 million per person and UGX 10 million per accident (regulation 4). The insurer must settle a claim within 60 days of notification, or within 30 days after a dispute is resolved (regulation 3).
Driving without it is an offence under section 2 of the Act: a fine of up to UGX 100,000, up to two years in prison, or both, and a 12-month driving ban unless the court finds special reasons. The policy runs for 12 months from issue, and you can renew in the last month (UIA). Check that your vehicle is covered with the digital sticker check, and read what third-party cover leaves out.
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Frequently asked questions
How much is third party insurance for a car in Uganda?
UGX 21,910 a year for a private car used by its owner or family, UGX 27,390 for a company car with an employed driver, plus UGX 1,000 per passenger above five seats including the driver (S.I. 214-1, Second Schedule).
How much is third party insurance for a boda boda in Uganda?
UGX 3,915 for a motorcycle over 50 cc and up to 150 cc, UGX 6,520 over 150 cc to 300 cc, UGX 3,260 up to 50 cc, UGX 9,785 over 300 cc to 500 cc and UGX 13,045 above 500 cc.
How much is third party insurance for a taxi in Uganda?
For a public service vehicle up to 2,000 cc, UGX 32,605 plus UGX 3,915 per passenger seat — UGX 87,415 for 14 passenger seats (our calculation).
Why is third party insurance so cheap in Uganda?
The regulations (history line: S.I. 36/1991) set the premium for a low cover: UGX 1 million per person and UGX 10 million per accident, injury and death only. Higher limits cost 0.5% of the extra limit under IRA's minimum rate guidelines.
Is the price the same at every insurer?
The regulations set one premium per type of vehicle for the statutory cover. The amount to pay is displayed when you enter the number plate on the MTN or Airtel menu; the 0.5% training levy is charged on top of premiums.
Sources
- Motor Vehicle Insurance (Third Party Risks) Regulations, S.I. 214-1, Second Schedule: premium rates (history: S.I. 36/1991) — IRA Uganda
- Motor Vehicle Insurance (Third Party Risks) Act — ULII
- IRA Uganda — Approved Minimum Rate Guidelines 2019 (minimum premium rate guidelines)
- Insurance Act, 2017 — IRA Uganda
- IRA Uganda — 2024 Annual Insurance Market Report (training levy, compulsory covers)
- IRA Uganda — Understanding how the new motor third party mobile payment platform works (MTN and Airtel steps, seen October 2026)
- Uganda Insurers Association — frequently asked questions on motor third party (MTP) insurance (seen October 2026)