AT least 60% of the country’s vehicles, including Zimbabwe United Passenger Company (Zupco) buses are not insured.
This was revealed on Wednesday in the National Assembly during debate on the Finance Bill in relation to the 2023 national budget.
Chairperson of the Budget and Finance Portfolio Committee Matthew Nyashanu told Parliament that most of the uninsured vehicles were government-owned.
He said only 40% of vehicles in the country were insured, which is worrying in the event of accidents.
“Out of an estimated 1,5 million vehicles in the country, only 40% of these have third party motor insurance. The remaining 60% are without third party insurance, including government vehicles and Zupco buses,” Nyashanu said.
“The committee also noted that although government vehicles are not insured, in case of an accident, government still has to compensate the victims. Therefore, it is prudent for the government to come up with some form of insurance scheme to mitigate this risk.”
Nyashanu said increasing vehicle insurance fees would punish law-abiding motorists.
“The committee is highly concerned with the lack of clarity on the use of the 12% of gross premium which is currently being collected by the Traffic Council of Zimbabwe. Finance minister Mthuli Ncube does not have a mechanism to guarantee the good use of ring-fenced funds to benefit accident victims, yet the ministry is proposing to direct those funds to the Consolidated Revenue Fund, instead of creating a proper road fund for road accident victims.”
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Nyashanu urged Ncube and the Transport ministry to increase limits on third party motor insurance which will ultimately improve claims which are currently as low as $2 000 per person and $20 000 per bus according to Statutory Instrument (SI) 33 of 2019.
“This will ensure that claim benefits make a meaningful impact to victims of road accidents. Government, through the Ministry of Transport should enforce compliance so that 60% uninsured motor vehicles become insured, and this will raise more revenue through stamp duty,” he said.
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