The Uganda Insurers’ Association says the industry has recently witnesses a new wave of criminals and fraudsters who stage traffic accidents in order to claim hefty compensation sums from insurance companies.
The Insurers’ Chief Executive officer Miriam Magala told local media in Uganda that companies have complained of suspicious traffic accident claims which are difficult to verify. She said it was hard to ascertain whether the vehicles involved in the accidents were properly insured for motor third party.
“We are setting up a reference database so that before any insurance claim is paid out, insurance companies consult each other,” Daily Monitor Newspaper quoted Magala.
Magala added that they have engaged traffic police to intensify the search for motor third party insurance defaulters because that insurance policy is meant to ensure that only road worthy vehicles and properly trained drivers are operating on the roads so that accident victims or relatives of the deceased are compensated according to the law.
The comments follow a concern raised by a one Rahul Goel, the distribution deputy general manager East Africa Underwriters, on Monday as the company donated text books to Kitante Primary School to commemorate Nelson Mandela Day.
He said the company has registered a rise in claims mainly for motor vehicle accident compensations which usually ranges from Shs100 million and above.
Uganda Insurance Regulatory Authority Public relations officer Mariam Nalunkuuma said they are receiving several complaints regarding fraudulent claims. She said they might resort to publicizing the claims before they are paid out to deter such criminals.