In Uganda, motor vehicle ownership is on the rise, but many vehicle owners are not adequately protected against the risks of accidents, theft, and other unforeseen events. Motor comprehensive insurance is an essential protection for vehicle owners, but many are unaware of its benefits or think it is too expensive.
In this interview, The Telegraph UG sits down with Nancy Ashaba, Underwriting Manager at UAP Old Mutual Insurance Uganda, to discuss the importance of motor comprehensive insurance, common misconceptions about the product, and how UAP Old Mutual’s innovative monthly payment plan is making motor comprehensive insurance more accessible and affordable for vehicle owners in Uganda.
QN: What is motor comprehensive insurance, and how does it differ from third-party insurance?
ANS: Motor comprehensive insurance covers accidental damage to the insured vehicle, theft of vehicle and vehicle parts and third-party liabilities, such as injuries or property damage. This contrasts with statutory third-party insurance, which only covers third party liabilities following injuries or death of the insured. The insurance cover usually runs for a year.
QN: What are the benefits of having motor comprehensive insurance, and why is it essential for vehicle owners in Uganda?
ANS: The benefits of having motor comprehensive insurance include financial protection in case of accidents, theft, fire and other risks. It is essential for vehicle owners in Uganda to take up motor comprehensive insurance because it offers complete coverage and peace of mind.
QN: How does motor comprehensive insurance provide financial security?
ANS: Motor Comprehensive Insurance safeguards you from financial devastation, providing peace of mind and protection for your valuable investment. Without it, unexpected car repair costs or replacement expenses can destroy your hard-earned savings. This comprehensive coverage shields you from financial loss in the event of theft, damage, or destruction of your vehicle, its accessories, or spare parts, resulting from accidents, fire, riots, or other unforeseen events. It also ensures that you are covered for third-party liabilities, providing compensation to others in the unfortunate event of an incident or injury caused by you. By opting for Motor Comprehensive Insurance, you are securing your financial well-being and driving with confidence, knowing you are prepared for life’s unexpected twists and turns.
QN: Can you share some common misconceptions about motor comprehensive insurance, and how does UAP Old Mutual’s offering address these concerns?
ANS: Common misconceptions about motor comprehensive insurance include thinking it is too expensive or only necessary for new vehicles and the high-end class of car owners. This stems from lack of awareness about the product.
According to a 2020 study by the Insurance Regulatory Authority, a significant gap exists in the uptake of comprehensive insurance policies, with only 15% of insured vehicles holding comprehensive policies compared to 85% with third-party policies. The report highlights that this stems from the need for adequate sensitization on the benefits of comprehensive insurance, which is a significant challenge in the industry.
UAP Old Mutual’s offering addresses these concerns by educating the public about motor comprehensive insurance and its benefits and offering affordable payment options. This aims to empower vehicle owners to make informed decisions about their insurance needs.
QN: How can UAP Old Mutual make motor comprehensive more accessible for vehicle owners in Uganda?
ANS: Making motor comprehensive insurance more accessible involves offering flexible payment plans such as the monthly instalments we have introduced. We can also make motor comprehensive more accessible by educating the public about its benefits and better yet, leveraging on technology to simplify the insurance process.
QN: Why did you introduce the monthly payment plan for motor comprehensive insurance, and how does it work?
ANS: The monthly instalment payment plan has been introduced to make motor comprehensive insurance more affordable and accessible. The plan allows customers to pay the annual premiums in monthly instalments, making it easier to budget and manage their finances.
For example, a customer can pay UGX 100,355 per month instead of UGX 1,204,262million at once for a vehicle valued at Ugx 24.5million
QN: How do you anticipate this monthly payment plan will impact customer experience and satisfaction?
ANS: The monthly payment plan is expected to create better customer experience and satisfaction. Historically, insurance has been perceived as a costly and intangible product, only beneficial in uncertain circumstances. The traditional lump sum payment approach has been a significant barrier, leading many to opt for the cheaper, statutory third-party insurance instead. However, with our innovative monthly instalment plan, comprehensive insurance becomes more accessible and affordable. Customers can now enjoy better benefits and peace of mind, by paying for their comprehensive insurance in manageable monthly instalments, aligning with their budget and financial preferences.
QN: How do you foresee the insurance industry evolving in the context of motor insurance, what role will UAP Old Mutual play in this evolution?
ANS: The insurance industry will evolve with technological advancements and increasing demand for digital services. UAP Old Mutual Insurance will continue innovating and expanding its offerings to meet these changing needs by leveraging on technology to improve efficiency and enhance customer experience. UAP Old Mutual Insurance (U) Ltd will also focus on personalized marketing and creating better processes for customers to have a seamless process.