Passengers lobby for compensation hike

Source: Passengers lobby for compensation hike | Sunday Mail (Local News)

The Passengers Association of Zimbabwe – a private organisation representing the interests of commuters – is lobbying for an increase in compensation to accident victims to match rising medical costs.

The Insurance Council of Zimbabwe recently took “the bold initiative” to upwardly adjust statutory limits for medical expenses to $1 000 from $350, and compensation for death to $3 000 from $2 000, PAZ says it is not enough.

The annual insurance premium remains at $12 per passenger.

PAZ president Mr Tafadzwa Goliath said the statutory limit for medical expenses and death should be pegged at $6 000 and $5 000 respectively.

“We wrote several letters to different authorities, including the Ministry of Transport and Infrastructure Development, advising them that the money currently paid to accident victims is now inadequate,” said Mr Goliath.

“Medical expenses for medical victims not only involve consultation fees, but X-rays and complicated procedures such as operations,” he said.

However, Insurance Council CEO Mr Oliver Guni recently wrote to the Insurance and Pension Commission, the industry regulator, advising that a further increase would require premiums to go beyond $12.

“As an industry we. . .took the bold initiative of increasing the limits as proposed, as this has been the practice in the motor insurance industry since June 1, 2011. We have maintained the annual insurance premium at $12/passenger for these increased benefits,” said Mr Guni in a letter dated October 31, 2018.

“We would also advise that any further increase of limits beyond the current proposal would attract an additional premium. Any additional insurance premiums on such statutory insurance provisions would require amending the legislation. Only the Ministry of Transport has the mandate to superintend over the matter.”