Motor Vehicle Insurance (Third Party Risks) Act
- There are multiple commencements:
- [This is the version of this document at 31 December 2000.]
- [Note: The version of the Act as at 31 December 2000 was revised and consolidated by the Law Reform Commission of Uganda. All subsequent amendments have been researched and applied by Laws.Africa for ULII.]
|Part I (section 1); Part II (section 2–14); Part III, subpart (section 26–31); subpart (section 32–36); Part IV (section 37–42)||commenced on 1 July 1989.|
|Part III, subpart (section 15–21); subpart (section 22–25)||commenced on 1 October 1989.|
Part I – Interpretation
1. InterpretationIn this Act, unless the context otherwise requires—(a)"board" means the board of the Nominal Defendant Council established under section 19;(b)"certificate of insurance" means a certificate of insurance issued under section 7;(c)"commissioner" means the commissioner for insurance appointed under the Insurance Act;(d)"council" means the Nominal Defendant Council established under section 15;(e)"driver" means any person who drives a vehicle on a road or who is in actual physical control of the vehicle;(f)"insurance company" means an insurer within the meaning of section 4 of the Insurance Act;(g)"insurer" means an insurance company which issues a policy of insurance required under section 2;(h)"insured" means a person or persons or classes of persons covered by a policy of insurance taken out under section 2;(i)"Minister" means the Minister responsible for finance;(j)"owner" has the same meaning as in the Traffic and Road Safety Act;(k)"third party" means a person or persons or classes of persons not privy to the policy of insurance taken out under section 2;(l)"vehicle" means all types of motor vehicles defined under and for the purposes of the Traffic and Road Safety Act, and includes trailer and engineering plant as defined in that Act but does not include any of the following—(i)a vehicle propelled by mechanical power and specially designed and constructed (and not merely adapted) for the use of persons suffering from some physical defect or disability and used solely by those persons;(ii)a bicycle or tricycle fitted with an auxiliary internal combustion engine having a maximum cylinder capacity of thirty-five cubic centimetres;(iii)such other vehicles as may from time to time, by regulations made under the Traffic and Road Safety Act, be declared not to be motor vehicles for the purposes of that Act.
Part II – Compulsory insurance of vehicles
2. Vehicles to be insured against third party risks
3. Scope of policy of insuranceIn order to comply with the requirements of section 2, the policy of insurance must be a policy which—
4. Penalty for false statements and wilful avoidance of policyAny person who, for the purposes of obtaining a policy of insurance as required under section 2, makes any false statement in consequence of which the policy is liable to be avoided, or wilfully does any act which disentitles him or her to claim under the policy, commits an offence and is liable on conviction to a fine not exceeding one hundred thousand shillings or to a term of imprisonment not exceeding two years or to both such fine and imprisonment.
5. Certain conditions in policy to be of no effect
6. Avoidance of restrictions on scope of policy
7. Certificate of insurance
8. Display of certificate of insurance
9. Owner to give notice of accident to insurer
10. Duty of owner, etc. to give information as to insurance
11. Provisions applicable where a premium less than the proper premium is paid
12. Insurer may settle claim
13. Rights of third parties against insurer on bankruptcy, etc. of insured
14. Passengers for hire not to contract themselves out of benefitsIn any proceedings or any claim against an insured or an insurer under this Act in respect of an accident causing death of or bodily injury to any person being at the time of the accident a passenger for hire in the vehicle, it shall not be a defence that the contract of carriage had excluded or modified the liability of the insured or of any other person from paying or to pay damages in respect of accidents due to the negligence or wilful default of the insured.
Part III – Accidents caused by unidentified vehicles or uninsured vehicles
Establishment of the council
15. Establishment of the council
16. Duty of the councilSubject to sections 32 to 36, the Nominal Defendant Council shall be responsible for making good liability incurred by the owner or driver of an unidentified or uninsured vehicle where death of or bodily injury to any person is caused by or through or in connection with the use of the vehicle on the road.
17. Functions of the councilThe council shall—
18. Powers of the councilThe council may do all such things as are calculated to facilitate or are incidental or conducive to the better carrying out of its duties and functions and may, in particular, but without prejudice to the generality of the foregoing—
19. Appointment and composition of the board
20. Meetings of the board
21. Remuneration of membersThe chairperson and the other members of the board and any other person attending any meeting of the board may be paid such remuneration or allowance as the Minister may approve.
22. Executive secretary
23. Authentication of documents of the council
24. Other staff
25. Indemnity of officersNothing done by an officer or employee of the council, if done bona fide for the purposes of carrying out any provision of this Act, shall subject him or her to any civil liability.
26. Capital of the council
27. Subscriptions by the Government
28. Subscriptions by insurance companies
30. Council to operate on sound business principlesIn the discharge of its obligations and in the performance of its functions under this Act, the council shall conduct its business on sound business principles.
31. Accounts and audit
32. Liability where a vehicle is unidentified or uninsured and the owner is unidentified
33. Liability where a vehicle is uninsured
34. Limit of liability of the councilThe liability of the council in respect of any judgment under sections 32 and 33 shall be limited to one hundred and fifty thousand shillings inclusive of costs incidental to the judgment or such higher amount as the Minister may, by statutory instrument, prescribe.
35. Council may settle claimsWhere a claim is made against the owner or driver of an uninsured vehicle resulting in the death of or bodily injury to any person caused by the use of that vehicle on a road and the liability is one for which the owner would have been indemnified if there had been a policy of insurance in force in respect of that vehicle, section 12 shall apply, as if the council were the insurer under a policy of insurance under this Act.
36. Recovery from owner
Part IV – Miscellaneous
37. Production of evidence of policy on licensing and transfer of vehicle
38. Insurance companies to underwrite third party insuranceEvery insurance company issued with a licence under the Insurance Act shall be required to carry on the business of underwriting third party risks; and where the commissioner is not satisfied that an insurance company is carrying on a reasonable amount of such business, he or she may refuse to issue or to renew a licence to that insurance company under section 76 of that Act.
39. Third party to sue the insured, etc. and not the insurerIn all third party claims in respect of damages to property of, the death of or bodily injury, to any person, arising from any accident, the third party shall proceed against the owner, or the driver or the council, as the case may be, and not the insurer.
40. General penaltyAny person who commits an offence under this Act or any regulations made under this Act, for which no other penalty is specifically provided, is liable on conviction to a fine not exceeding fifty thousand shillings or to imprisonment for a term not exceeding twelve months or to both such fine and imprisonment.
42. Suspension of Part IIISections 15 to 36 are suspended and, accordingly, the definitions of "board" and "council" and any other provisions of the Act applicable to the suspended provisions are to the extent of that application also suspended.
History of this document
01 July 1989