Natalie Nyathi,
Business Reporter
The Insurance Council of Zimbabwe (ICZ) has reported that about half vehicles on Zimbabwe’s roads are not insured.
In their latest report, ICZ, said that 40% of about 1. 5 million motor vehicles on Zimbabwe roads have evaded paying for insurance cover.
Insurance Council of Zimbabwe (ICZ) regulates conduct of insurance companies and is also responsible for increase in premiums and clauses of the policies whereas insurance companies issue policies for the purpose of managing risk.
When one buys insurance, he/she purchases protection against unexpected financial losses.
The Insurance Council of Zimbabwe Spokesperson Ringisai Batiya said the failure by the 40% of vehicles to have insurance cover has affected victims of road traffic accidents who fail to get compensation when they are involved in the road mishaps while traveling on uninsured vehicles.
This has compelled the government, many a times to cater for all the medical bills of road accident victims.
“About 40% of the approximately 1,5 million vehicles on the national database do not have third party motor insurance,” she said.
“Through campaigns, ICZ has been educating and raising awareness on the need to comply with statutory requirements that every vehicle on the road should have third party motor insurance.”
The authorities say approximately 5 people perish on a daily basis on Zimbabwe’s roads.
At the beginning of the year a Blitz by Zimbabwe Revenue Authority (ZIMRA) targeting mostly top of the range vehicles and cars that were undervalued allegedly to evade paying the requisite import duties, instead the operation unveiled that according to ZINARA, about 300 000 vehicles had no license plates.
For a vehicle to obtain a license disk from ZINARA, a valid insurance cover is a prerequisite.
Insurance policies range from four term limits, to a full year. There is third party cover insurance that will carter for the damages or injuries affecting the other parties involved in an accident serve for the policy holder.
Full or comprehensive cover carters for both parties.
Previously, insurance companies had been barred from issuing policies in foreign currency, specifically the greenback. It is during this tenure that many motorists stopped insuring their vehicles as the local currency was unfavorable.
Another aspect that has contributed to motorists not complying with the insurance statute is the lack of seriousness by the Zimbabwe Republic Police, ZRP, who are supposed to enforce the compulsory license and insurance laws.
The ZRP, has been found wanting as they let pass uninsured motor vehicles through their road block check points.
Amongst the uninsured vehicles are the Public Service Vehicles, PSVs, comprising of commuter omnibuses, Kombis, and long distance passenger buses.
These are the ones who put passenger lives at risk since failure of compensation is inevitable.
If a PSV is not insured and is involved in an accident, the passengers will loose out on compensation.
In a related matter the Zimbabwe National Road Authority (ZINARA) has announced that all vehicles without valid license disks will not being allowed to pass though tollgates with effect from 1 October this year.
Batiya said the move by Zinara would also push for compliance with statutory insurance regulations.
“The winner(s) in this are road accident victims who will access compensation through insurance claims”.
“The move also compels vehicle registration which helps in traceability of stolen cars and tracking cars being used to commit crime,” she said.
Police spokesperson Assistant Commissioner Paul Nyathi said the clampdown on unregistered vehicles had been long overdue.
“The act was long overdue because decommissioned and unregistered vehicles in terms of vehicle licensing were causing problems because they were being used to commit robbery, rape, kidnapping, hit and run cases. In the process, it was a task for police to track them.
“This act by Zinara will certainly assist in the maintenance of law and order in the country and also ensuring justice is served,” he said.
It is yet to be seen in the ZRP will play its role in ensuring that uninsured vehicles owners are brought to book.