IRA fronts MTP-EPS to tackle motor third party insurance fraud

The Insurance Regulatory Authority (IRA), has intergrated its motor third party insurance system (MTP), with police’s Express Penalty Scheme (EPS) system, in order to curtail the ferocious motor third party insurance fraud.

The sheme, now dubbed MTP-EPS is poised at enabling traffic police officers, to easily detect fake and counterfeit insurance covers. The new initiative was rolled out in a coordinated move between IRA and Ministry of Works and Transport.

IRA Chief Executive Officer Alhajj Kaddunabbi Ibrahim Lubega said traffic police officers have been equipped with necessary skills to manage and run the new intergrated MTP-EPS system.

“We believe the successful installation of the motor third party system onto the Express Penalty System will ease the work of traffic police officers as they enforce compliance,” he said.

By keying vehicle registration numbers in the new intergrated system, police traffic officers will be able to determine the authenticity of motor third party insurance stickers attached on the vehicles.

Clare Asasire, the Uganda Police Force’s information communication officer revealed the new strategy will uncover the mode of insurance policy undertaken by vehicle owners. She made it clear, that traffic police officers will no longer check the validity and authenticity of insurance stickers on vehicles manually.

“EPS will now give us the information in relation to the type of insurance policy that the vehicle owner holds, expiry date, insurance company, vehicle model, vehicle chassis number, vehicle owner and others. Traffic police officer will now no longer have to be manually check insurance stickers on the motor vehicles and this will help in elimination of counterfeit motor third party stickers,”she noted.

Speaking at the launch of the system, the minister of Works and transport Gen. Katumba Wamala, urged motorists to take it upon themselves and aquire authentic insurance stickers, warning that those who forge must face an iron arm of the law.

“I want to take this opportunity therefore to appeal to Ugandans to exercise their constitutional rights by obeying the law to the letter,” he said.

“Ensure you have a motor third party insurance at the very minimum because if you don’t have it, the non-compliance space has been narrowed and you will surely be apprehended.”

This swift response is due to the findings, revealed in a recent study by IRA, which indicated an alarming non-compliance in the purchase of the compulsory third party insurance policies, which has resulted into denial of compessation to accidents victims from insurance providers.

It is estimated that less than 39% of the current vehicles on the roads have a mandatory third party insurance covers. Most of the insurance covers appear to be fake and forged.

Recent data from the Ministry of Works and Transport shows that by June.30th 2020, 1,361,861 motor vehicles were registered on the e-tax platform while 940,160 were yet to be validated on the platform.

In a coordinated move with the IRA, the Ministry of Works and Transport, Uganda Revenue Authority and the Uganda Insurers Association passed a mandatory mobile payment platform to streamline the operation of motor third party insurance in 2019.