Factors influencing the retention of comprehensive motor insurance among Makerere University staff

Abstract

The main aim of this study is to examine the factors that contribute to retention of comprehensive motor insurance among Makerere University staff. The intention of this study is to enable the government, insurance companies and other policy makers to improve on the uptake and awareness of comprehensive motor insurance to the general public and identify the factors that are considered for motor comprehensive enrollment. The data used was collected from the various parking lots and offices within Makerere University using 96 questionnaires, the respondents were mainly the lecturers and other staff of the University. Entry of data was done using EXCEL and then univariate analysis, cross tabulations and logistic regression model were performed on the variables in the study using STATA The results revealed significant relationships between having comprehensive motor insurance and age group (p = 0.090), gender (p =0.082), size of the family (p =0.070), the type of vehicle an individual has (p =0.098), duration of owning the vehicle (p =0.001), its estimated value (p =0.053) and an individual’s perception of the premiums (p =0.074). There was no relationship between having comprehensive motor insurance and marital status (p = 0.962), a staff member’s designation (p = 0.356) and whether an individual could recommend someone else to acquire comprehensive motor insurance (p = 0.158). The researcher therefore concluded that one’s duration of owning a vehicle, source of information about comprehensive motor insurance and perception about the premiums were most likely to influence their ability and willingness to acquire comprehensive motor insurance for their vehicles. The respondent’s details and claims information totally had no effect on one taking on a comprehensive motor insurance policy since there was no relationship among the variables under study in each case. Therefore, the need for sensitization and education of masses on various aspects within the insurance sector, and this knowledge about the sector will instill some confidence in Ugandans so that they can take not only comprehensive motor insurance but other insurance policies as well from the available insurance companies. The government should also consider providing incentives like tax holidays for this young sector.