News:Third party insurance rises

From Pindula

<vote /> Third party insurance premiums have risen by 20% to $36 per term from last year's $30 for light vehicles and $88 from $60 for commuter omnibuses.

This hike in premiums coincedes with Zinara's computerisation programme, which has seen only 20 out of the 22 insurance firms being accredited.The compterisation programme was done to stem the issue of fake insurance cover to unsuspecting motorists. The manual entry system made it difficult for the Traffic Safety Council of ZImbabwe to collect the statutory 12 percent levy that is paid from third party insurance firms.

Transport and Infrastructural Development Minister, Joram Gumbo said that,

"All along, third party insurance was one boulevard to compensate road victims, but had not helped matters as it was exacerbated by the proliferation of fake insurance policies. I have set up a Road Accident Fund which will go a long way in helping accidents victims."

If the programme is fully implemented, more than $108 million will be raised per year through third party insurance considering that about 1, 2 million vehicles are currently registered on Zinara’s database. Estimates suggest that Government loses $5,4 million annually through fake premiums. Through the new system, which began on May 2, 2016; Government will be able to easily verify revenues collected through insurance companies.

Read full story on The Sunday Mail

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