Factors Influencing the Uptake of Motor Third Party Insurance among Motorcyclists in Uganda: A Case Study of Wandegeya

Abstract

The major objective of this research was to determine the factors that influence uptake of motor third party insurance among motorcyclists in Uganda. Primary data was used and a sample size of 96 respondents was selected and interviewed. Entry of data was done using the epidata software analysis done using the stata software. Analysis was done using frequency tables, statistical tests and binary logistic regression formula In the study, it was observed that majority of the motorcycle riders (77.08%) have no motor third party insurance, 60.42% are married, (58.33%) are aged between 19 and 33, motorcyclists are not in any associations represented by 75%, motorcyclists have been involved in an accident represented by 55.21%, got to know of third-party insurance from other sources represented by 53.13%. The highest category of motorcyclists studied O level represented by 40.63%, understand third-party insurance as a form of tax paid to the government represented by 43.75%. In the bivariate analysis, understanding of third party insurance as protection from liability and other forms of advertisement have a significant direct relationship with the uptake of third party insurance as there p-values are less than the level of significance (0.05), whereas marital status, age, association membership, level of education, accident involvement record and opinion on road safety have no significant relationship with the uptake of third party motor insurance. At the multivariate stage, the significant variable is understanding of motor third party insurance as protection from third party liability represented by a p-value of 0.045 and an odds ratio (4.276601). This implies that individuals who understand third party insurance as protection from third party liability are four times more likely to take on motor third party insurance. There is need for the respective enforcers and stake holders to raise awareness of motor third party insurance such that the motorcyclists know the benefit of owning such a policy.