Exploring the barriers to Motor Third Party Insurance claims among taxi drivers In Kampala, Uganda

Abstract

Motor Third Party (MTP) insurance is a compulsory form of motor insurance intended to provide compensation to third parties who suffer injury, death, or property damage arising from road traffic accidents. Despite its mandatory nature, formal utilization of MTP insurance claims remains low in Uganda, with a significant gap existing between the occurrence of road traffic accidents and the number of claims submitted. This study explored the barriers influencing the pursuit of MTP insurance claims among commercial taxi drivers operating from the Old and New Taxi Parks in Kampala. The study adopted a qualitative phenomenological research design to examine the lived experiences and perceptions of taxi drivers regarding MTP insurance claims. Data were collected through semi-structured interviews with ten (10) taxi drivers operating from the Old and New Taxi Parks in Kampala and analyzed using thematic analysis. The study was guided by the Theory of Planned Behavior (Ajzen, 1991) and Trust Theory (Mayer et al., 1995), which provided a framework for understanding how attitudes, subjective norms, perceived behavioral control, and institutional trust influence decisions to pursue formal claims. The findings revealed four interconnected barriers affecting MTP claim utilization. First, awareness and understanding of MTP insurance were critically low, with most participants perceiving the policy primarily as a government tax requirement rather than a right to compensation, while nearly all reported having received no sensitization on claims procedures. Second, participants expressed deep distrust toward insurance providers, frequently describing insurers as dishonest and associating them with non-payment of claims. Third, structural and procedural barriers, including lengthy claims processes, excessive documentation requirements, limited accessibility of claims information, language barriers, and financial costs, discouraged both the initiation and completion of formal claims. Fourth, informal on-the-spot cash settlements had become a dominant alternative, driven by the need for immediate resolution and avoidance of income losses associated with prolonged claims procedures. The study contributes to existing literature by providing a qualitative account of MTP insurance experiences among commercial taxi drivers, a group whose perspectives have received limited attention in previous Ugandan research. Two novel findings emerged from the study: the identification of English-only claims documentation as a potential accessibility barrier and the perceived role of police officers in encouraging informal accident settlements. The study concludes that improving MTP claim utilization requires more than increasing awareness; it requires coordinated reforms aimed at strengthening insurance literacy, improving trust in insurers, simplifying claims procedures, enhancing accessibility of claims information, and promoting institutional support for formal compensation mechanisms. Keywords: Motor Third Party insurance, insurance claims, taxi drivers, insurance literacy, trust, informal settlements, Kampala, Uganda.