By KT Reporter
SafeCar and SafeBoda drivers will now have access to affordable insurance, thanks to a new product currently being tested under the Insurance Regulatory Authority’s (IRA) innovation sandbox.
The policy offers a simplified and flexible version of motor comprehensive insurance, tailored to the needs and income levels of everyday transport workers. It was developed to give both drivers and passengers better financial protection and peace of mind.
Most motorists in Uganda rely only on motor third-party insurance, the minimum legal requirement to use public roads. However, this cover is very limited. It only compensates third parties injured in an accident, with a maximum payout of one million Shillings per victim. It does not cover the driver’s own medical bills, car repairs, or property damage.
“This reality leaves many motorists exposed, as they must pay for repairs and medical treatment out of pocket,” explains Raphael Bisaso, the Head of Marketing and Distribution at Liberty General Insurance Uganda.
He adds that comprehensive insurance, which would cover such costs, is often too expensive for most drivers, especially those who depend on their vehicles for daily income, such as SafeCar and SafeBoda operators.
Figures from the IRA show that only 14 per cent of Ugandan drivers have comprehensive insurance, while 36 per cent hold motor third-party policies. Yet, comprehensive policyholders contribute nearly 90 per cent of the industry’s revenue, a sign of how unequal the system is.
According to Bisaso, the new policy aims to bridge this gap by offering near-comprehensive protection at a price drivers can afford. “SafeCar drivers can pay monthly instead of paying once a year, which makes it easier to manage their finances,” he says.
If a driver’s car is damaged in an accident, whether it’s a dent, scratch, or broken windscreen, the policy covers repairs of up to four million Shillings per year. The driver pays only 10 per cent of the cost, and the insurer covers the rest.
In case of injury or property damage to others, the policy pays up to five million Shillings per incident. Drivers can also receive up to 500,000 Shillings for medical treatment. If a driver dies or suffers a permanent disability, their family is entitled to one million Shillings.
“The product was inspired by the everyday struggles of transport workers,” Bisaso notes, adding that while most drivers want protection, they can’t afford traditional insurance. This gives them a fair and flexible option suited to their income.”
Marcus Erimo, from the IRA’s Department of Strategy and Market Development, says the product, known as Protecta Boda, fits the regulator’s goal of making insurance accessible to all. “We want innovations that solve real-life problems. Ordinary Ugandans need insurance that fits their lifestyle and income level,” he explains.
He points out that insurance penetration in Uganda remains below one per cent of the population, meaning most people are still uninsured and vulnerable to financial shocks. He explains that while the policy is still in its trial phase, it represents a new way of thinking about insurance, one that responds to people’s real needs rather than offering one-size-fits-all products.
Christian Wamambe, SafeBoda’s Country Director, says the policy addresses the realities faced by both drivers and passengers. He adds that their goal is to make every ride safer and more secure. “When you book a SafeCar trip, you’re not just getting convenience, you’re getting peace of mind,” he says.
Several SafeCar drivers have already joined the pilot phase, and the numbers are expected to grow as awareness spreads. For drivers, it means they can work without fear of losing everything after an accident. For passengers, it guarantees that their safety and welfare are being taken seriously.
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