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MOTOR VEHICLE INSURANCE (THIRD PARTY RISKS) ACT.

ARRANGEMENT OF SECTIONS.

   Section

PART I
INTERPRETATION.

   1.   Interpretation.

PART II
COMPULSORY INSURANCE OF VEHICLES.

   2.   Vehicles to be insured against third party risks.

   3.   Scope of policy of insurance.

   4.   Penalty for false statements and wilful avoidance of policy.

   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 benefits.

PART III
ACCIDENTS CAUSED BY UNIDENTIFIED VEHICLES OR UNINSURED VEHICLES.

Establishment of the council.

   15.   Establishment of the council.

   16.   Duty of the council.

   17.   Functions of the council.

   18.   Powers of the council.

   19.   Appointment and composition of the board.

   20.   Meetings of the board.

   21.   Remuneration of members.

Staff.

   22.   Executive secretary.

   23.   Authentication of documents of the council.

   24.   Other staff.

   25.   Indemnity of officers.

Financial provisions.

   26.   Capital of the council.

   27.   Subscriptions by the Government.

   28.   Subscriptions by insurance companies.

   29.   Estimates.

   30.   Council to operate on sound business principles.

   31.   Accounts and audit.

Liability covered.

   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 council.

   35.   Council may settle claims.

   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 insurance.

   39.   Third party to sue the insured, etc. and not the insurer.

   40.   General penalty.

   41.   Regulations.

   42.   Suspension of Part III.

 

CHAPTER 214
MOTOR VEHICLE INSURANCE (THIRD PARTY RISKS) ACT.

Commencement: 1 July, 1989 (sections 1-14, 26-42),
1 October, 1989 (sections 15-25).

   An Act to make provision for compulsory insurance against third party risks in respect of the use of vehicles and to establish a Nominal Defendant Council and to provide for other matters connected therewith.

 

PART I
INTERPRETATION.

 

1.   Interpretation.

   In 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 35 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.

   (1) It shall not be lawful for any person to use, or to cause or to permit any other person to use, a vehicle on a road unless there is in force in relation to the use of the vehicle by that person or that other person, as the case may be, a policy of insurance in respect of third party risks that complies with the requirements of this Act.

   (2) Subsection (1) shall not apply to a vehicle owned by the Government of Uganda.

   (3) Any person who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding 100,000 shillings or to a term of imprisonment not exceeding two years or to both such fine and imprisonment.

   (4) A person convicted under subsection (3) shall, unless the court for special reasons thinks fit to order otherwise, and without prejudice to the power of the court to order a longer period of disqualification, be disqualified from holding or obtaining a driving permit for 12 months from the date of conviction, in addition to the penalties that may be imposed under subsection (3).

 

3.   Scope of policy of insurance.

   In order to comply with the requirements of section 2, the policy of insurance must be a policy which—

   (a)   is issued by an insurer holding a licence issued by the commissioner under the Insurance Act; and

   (b)   insures such a person or persons or classes of persons as may be specified in the policy in respect of liability which may be incurred by him or her or them in respect of death of or bodily injury to another person caused by or arising out of the use of a vehicle on the road; except that a policy in terms of this section shall not be required to cover liability in respect of the death of or bodily injury to a person arising out of and in the course of employment of the person, by a person insured under the policy.

 

4.   Penalty for false statements and wilful avoidance of policy.

   Any 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 100,000 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.

   (1) Any condition in a policy of insurance providing that no liability shall arise under the policy, or that any liability so arising shall cease in the event of some specified thing being done or being omitted to be done after the happening of the event giving rise to a claim under the policy, shall, as respects such liabilities as are required under section 3(b) to be covered by a policy, be of no effect.

   (2) Nothing in subsection (1) shall be taken to render void any provisions in a policy requiring the person insured to repay to the insurer any sums which the insurer may have become liable to pay under the policy and which have been applied to the satisfaction of the claims of third parties.

 

6.   Avoidance of restrictions on scope of policy.

   (1) Where a certificate of insurance has been issued under section 7 to the person by whom a policy has been effected, so much of the policy as purports to restrict the insurance of the persons insured by reference to any of the following matters—

   (a)   the age, physical or mental conditions of persons driving the vehicle;

   (b)   the condition of the vehicle;

   (c

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