Government Reviews Third-Party Motor Vehicle Insurance as Road Accident Fund Bill Takes Shape
The government is set to review Zimbabwe’s mandatory third-party motor vehicle insurance as it finalizes the proposed Road Accident Fund Bill.
This comes after motorists have long complained that the compulsory cover rarely provides real protection after accidents, prompting calls for reform.
Minister Outlines Funding Plans
Transport and Infrastructural Development Minister Felix Mhona said that part of the funds collected through third-party insurance could be channelled into the proposed Road Accident Fund. Other revenue streams are expected to be identified by the Ministry of Finance.
“The third-party insurance has been a topical issue and I do agree with the people of Zimbabwe that it is difficult to claim but there is still an element of liability that has to be met,” Minister Mhona said.
Public Concerns Over Effectiveness
Third-party insurance is a mandatory motor policy covering legal liability for bodily injury, death, or property damage caused to other road users in an accident.
While required under the Road Traffic Act, motorists complain that it is difficult to claim, leaving accident victims to shoulder most repair and medical costs.
“When you are involved in an accident, you often end up engaging other parties to repair your vehicle, yet the money ultimately goes to insurance companies. As we come up with the Bill, we are saying not only third-party insurance will fund the Road Accident Fund. We will also tap into other revenue streams as directed by the Ministry of Finance,” Minister Mhona added.
Government Promises Transparency and Reform
According to Minister Mhona, the government plans to provide transparent accounting of how much revenue goes to insurance companies for liability coverage versus how much can be redirected to a central accident compensation fund.
He emphasised that insurers will remain viable under the proposed changes.
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The post Third-Party Motor Insurance Under Review as Road Accident Fund Bill Takes Shape appeared first on iHarare News.
