The insurance regulator has adopted the mobile phone as a new payment platform for motor third party insurance.
The new digitised mobile payment platform, according to Insurance Regulatory Authority (IRA) will help curb fraud in the industry as well as increase convenience, reported Daily Monitor.
The move comes as government registers more than UGX52.5bn ($14.2m) in losses annually through forged of vehicle stickers.
Under the new arrangement, motorists will be able to pay for motor third party insurance through mobile phones with payments reflected at the Uganda Revenue Authority.
Mr Ibrahim Kaddunabbi Lubega, the IRA chief executive officer, said the move was informed by the need to fight fraud rackets in the insurance sector.
The IRA will be working with the Uganda Revenue Authority, Ministry of Works and the Uganda Insurers Association.
Under the new arrangement, the payment platform will ensure that all vehicles are issued with genuine motor third party insurance stickers and eliminate forgeries, which have hitherto left many people exposed.
The IRA also believes clients will be able to ascertain the appropriate insurance premium so as to avoid overcharging.
Kampala Metropolitan Police traffic commander, Mr Norman Musinga, said third party insurance is the most difficult to enforce since forgeries are very high.
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