Factors influencing uptake and renewal of motor comprehensive insurance in Uganda: a case study of Kawempe division
Abstract
The purpose of this study was to investigate the factors influencing uptake and renewal of motor comprehensive insurance which is my case study. Primary data was obtained using questionnaire approach from respondents of areas of Kawempe and analysis was done at 5% or 10% level of significance using STATA 15 statistical package. Crosstabs were used to analyze each categorical variable, while chi-square test was used to find the relationship between two categorical variables. For, multivariate analysis, logistic regression was used. From the findings, at 10% level of significance, using logistic regression, marital status, vehicle ownership, and vehicle were significant factors that affected class of insurance, while vehicle ownership was also a significant factor that affected contract status. In conclusion, marital status, vehicle ownership and vehicle make were found to be major factors influencing uptake of motor comprehensive insurance, while vehicle ownership was found out as the major factor influencing renewal of motor comprehensive insurance. It was recommended that insurance companies should place emphasis on designing motor comprehensive policies with competitive premiums, education on motor comprehensive policies should target car private owners, insurance companies should improve on time taken in claim processing, insurance companies should also work with Uganda Police to apprehend defaulters, and insurance companies should also sensitize the public about the importance of motor comprehensive insurance