| dc.description.abstract | The study investigated the relationship between demographic factors, social economic factors and uptake of motor third party insurance. The study has the following objectives; To identify the factors affecting the uptake of motor third party insurance among private motor owners in Uganda. To identify the factors that influence the decision-making process of private motor owners regarding the uptake of motor third party insurance. To examine the awareness and understanding of motor third party insurance policies among private motor owners in the Kampala Metropolitan Area. To explore the perceptions, attitudes, and beliefs of private motor owners towards motor third party insurance. To evaluate the role of socioeconomic factors, including income, education, and occupation, in shaping the insurance uptake behavior of private motor owners. To provide actionable recommendations for policymakers, insurance companies, and stakeholders to improve motor third party insurance coverage in the region.
A cross sectional study design was used in the study to establish the relationship between demographic factors, social economic factors and uptake of motor third party insurance., using Statistical Package called STATA 16. The study had a total sample of 270 respondents in Kampala metropolitan Area participated and from its findings, majority of respondents were males (58.1%), aged between 26 to 35 years (39.3%), education level was tertiary (40.7%), occupation being employed (57.8%) and their monthly income in the range 500,000 to 1000000 Ugx (48.9%).
In regard to importance of having a motor third party and awareness, most respondents were neutral about it (100.0%) and 91.2% were aware of the requirements to have motor third party insurance. 96.3% of the respondents became aware of it through family and friends. 96.0% reported it to be affordable however, the biggest constraint to their affordability was high premium costs (97.8%). 96.3% trusted trusted insurance companied to pay claims in case of an accident and 97.8% reported to have been covered by motor third party insurance after being involved in an accident. On the aspect of challenges encountered while obtaining motor third party insurance, most of the respondents reported to have found difficulty in finding an insurance provider (96.3%).
Study findings revealed most respondents had motor third party insurance for their vehicles, with males dominating at 58.1%, aged between 26 to 35 years Similar findings were reported by the insurance regulatory authority where males dominated at 83% in the age bracket of 25 to 44.(Analysis et al., 2013)
Findings revealed that the biggest constraint to their affordability was high premium costs (97.8%). Similar findings were reported by Kasozi highlighted that high insurance premiums, coupled with economic challenges, pose barriers to the uptake of motor third party insurance(Mungai, 2019).
The study findings showed that respondents at tertiary education level significantly had a high uptake of motor third party insurance which in contrast similar similar findings by revealed that secondary education had the high uptake. 86 % of the respondents had least secondary level of education
The study recommends use of mandatory laws requiring drivers to have third-party insurance coverage which can significantly boost uptake rates. It also recommends educating the public about the benefits of motor third-party insurance through awareness campaigns to encourage more individuals to purchase coverage.
The study recommends use of insurance policies are affordable for a wide range of income groups to positively impact uptake and offering multiple and convenient ways to purchase insurance
The study further recommends strict enforcement of insurance requirements through regular checks and penalties for non-compliance to compel more people to get insured and offering a variety of coverage options beyond mandatory third-party liability coverage can attract more customers.
Establishing a reputation for fair and efficient claims processing which can build trust among potential customers. | en_US |
