Nkosentsha Khumalo
The Passengers Association of Zimbabwe (PAZ) has raised serious concerns about the government’s proposed takeover of third-party motor insurance, warning that the move could be plagued by corruption and mismanagement.
With a checkered history of failed public sector initiatives and allegations of corruption in other state-run enterprises, PAZ fears that placing motor insurance in the hands of the government could create more problems than it might solve for Zimbabwe’s travelers.
Third-party motor insurance, also known as liability insurance, covers damages caused to other people, their property, or vehicles, by the insured vehicle. This means that if the insured vehicle is involved in an accident, the insurance company will pay for the damages or injuries to the third party, up to the policy limits.
This type of insurance is required by law in most countries, including Zimbabwe, to protect against losses incurred by innocent passengers in case of an accident.
Recently, the Government announced that it is finalising new regulations to set up a State-controlled third-party motor vehicle insurance scheme that will assume the responsibility of underwriting compulsory vehicle liability insurance, currently handled by private insurers.
The regulations, will see private insurers relinquishing their role in underwriting third-party motor vehicle insurance, which is compulsory in terms of the Road Traffic Act.
Presently, it covers death, injury and damage to property in road traffic accidents.
The authorities believe the coverage offered by private insurers is insufficient and often leaves policyholders with additional expenses, especially when claims are made after accidents.
Conversely, the State-backed scheme is envisaged to offer a broader range of benefits, including covering medical expenses incurred following accidents, financial compensation for injuries sustained in accidents, funeral grants in the event of an accident-related death and compensation for lost income due to injuries.
Paul Makiwa, the Secretary General of Passengers Association of Zimbabwe (PAZ), expressed his disapproval of the government’s decision to man the third party motor vehicle insurance policy. He voiced his concerns about the likelihood of a repeat of past failures, where state funds were misappropriated after private players were replaced by the government.
Makiwa stated,
“History has taught us that whenever government takes over a project that was run by private players, it often results in chaos and failure.”
Makiwa emphasized that he is not against the government, but rather pro-government, stating that citizens should be proactive and hold the government accountable when necessary.
He highlighted that the nation is built by its citizens, hinting on President Emmerson Dambudzo Mnangagwa’s quote from the popular mantra which says,
“Nyika inovakwa nevene vayo”, meaning “A nation is built by its own people.”
In Makiwa’s opinion, citizens must speak out against any possible mismanagement or misappropriation of funds, lest they all end up lost like a ship without a captain.
Makiwa illustrated his point with an example of the centralization of power in Harare, which he claimed resulted in overpopulation and underdeveloped infrastructure in other cities.
“I have over thirty examples where the government’s takeover of private enterprises resulted in chaos and underperformance. For instance, when Zimbabwe National Road Authority (ZINARA) took over our roads, they fell into disrepair. Similarly, when Zimbabwe National Water Authority (ZINWA) assumed control of water management and Zimbabwe Electricity Supply Authority (ZESA) took charge of power distribution, we saw a decline in service quality. The vehicle license system is no exception.”
Makiwa highlighted that these services were initially managed by private players under the oversight of the government, and they were functioning well for the development of the nation. He, however, argued that the government’s decision to take over these services had led to disastrous consequences, including economic siphoning and poor service quality.
PAZ raised concerns about how citizens had been deprived of their rightful compensation in cases of air crashes, shipwrecks, and other disasters involving diplomatic and government officials, as well as members of the civil society.
Makiwa seemed to suggest that the government had prioritized its own interests over the welfare of its citizens.
He pointed out that South Africa was the only African country that seemed to be properly compensating road accident victims, highlighting the gap between Zimbabwe and other countries on this issue. He emphasized that Zimbabwe, being party to international transport treaties, had obligations to its citizens regarding such compensation, and urged the government to revisit its stance.
In his resolution, Makiwa argued that the government should investigate why victims were not compensated in the past despite the government’s oversight of the process.
He also said the Government must ensure that past victims are compensated as a matter of justice and fairness. He called upon the Zimbabwean government to carefully reconsider its decision to take over the third-party motor vehicle insurance policy, before further problems arise.
In the stance of assuming authority over third party motor insurance policy, Makiwa questioned how the government could possibly act as both a player and referee in this matter, and urged President Emmerson Mnangagwa and the Politburo to revisit the issue to avoid public outcry.
He suggested that the government must investigate why compensation had not been provided to victims in the past, despite being in charge of the process, and that the government should compensate all past victims whose records are available, in line with principles of justice and fairness.
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