Assesment of the settlement of Motor Third Party claims by insurance companies in Uganda

Abstract

The study sought to assess the settlement of motor third party claims by insurance companies in Uganda. A quantitative and cross-sectional survey was adopted and data was collected using a self-administered questionnaire. The findings established that the majority of the accident victims (80.12%) took care of their own medical bills on family basis. However, the only 6% that whose bills who were paid for by insurance were actually on company duties, hence their respective companies making the claims on their behalf. although majority of the accident victims (54.93%) who were admitted to hospital knew they were supposed to be compensated, most did not bother to make their claims on insurance company and also majority of these people who although were aware of their right to of being compensated (74.36%), they dreaded the long procedure of getting their claims settled. This could be because of the perception among some individuals that insurance is a form of tax and a luxury, it is recommended that education on insurance should be increased, government`s supervision of insurance operations be strengthened and that insurance companies should improve their client orientation about the use of motor third party.