Source: Third-party motor vehicle insurance under scrutiny – herald
Zvamaida Murwira
Senior Reporter
THE future of third-party motor vehicle insurance is set to come under scrutiny as Government finalises the proposed Road Accident Fund Bill, amid growing frustration from motorists who say the compulsory cover rarely offers meaningful protection after accidents.
The Ministry of Transport and Infrastructural Development is conducting nationwide public consultations on the Bill, with motorists keen to understand how third-party insurance — long criticised as ineffective — will fit into the new compensation framework for road traffic accidents.
Transport and Infrastructural Development Minister Felix Mhona said Government was considering channelling part of the funds collected through third-party insurance into the proposed Road Accident Fund, alongside other revenue streams to be identified by the Ministry of Finance.
Minister Mhona made the remarks during a Zimpapers Current Affairs radio programme, Muriro on Monday, noting that consultations were still ongoing and that no final position had yet been adopted.
Third-party insurance is a mandatory basic motor policy that covers legal liability for bodily injury, death or property damage caused to other road users in an accident.
While it is a legal requirement under the Road Traffic Act, motorists have repeatedly complained that it is difficult to claim against, leaving accident victims to shoulder most repair and medical costs.
“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,” said Minister Mhona.
“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 said Government also intends to account transparently for how much revenue flows to insurance companies to cover liability and how much can be redirected towards a central accident compensation fund, while ensuring insurers remain viable.
Motorists, however, argue that third-party insurance has largely become a prerequisite for vehicle licensing rather than a functional safety net, accusing insurers of collecting premiums without offering commensurate cover when accidents occur.
Their concerns echo sentiments raised by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, who in the 2024 National Budget announced that Government was considering establishing a State-controlled third-party motor vehicle insurance scheme.
Under the proposed arrangement, the State would assume responsibility for underwriting compulsory vehicle liability insurance, which is currently handled by private insurers.
Authorities believe the existing private-sector model provides limited benefits and often leaves policyholders exposed to additional costs after accidents.
Prof Ncube said enforcing third-party liabilities had proved difficult because private insurers are profit-driven and lack incentive to compensate victims adequately.
“Whilst insurance is an appropriate mechanism to cover liability costs, it has, however, proved difficult to enforce third-party liabilities since private insurers are profit-oriented and, hence, have no motivation to compensate for the losses incurred,” he said.
“In that regard, I propose that the Government assumes third-party motor vehicle insurance, to private and public motor vehicles, as is the case with other countries in the region.
“The prescribed compensation limits provided through the Road Traffic Act, are not adequate, since they are restricted to death, permanent disability, medical and funeral expenses.”
The envisaged State-backed scheme would offer broader benefits, including coverage for medical expenses, compensation for injuries, funeral grants in the event of accident-related deaths and compensation for lost income due to injury – benefits not fully provided under the current framework.
Currently, private insurers offer three basic motor insurance products: third-party cover; third-party, fire and theft (TPFT); and comprehensive insurance.
While TPFT and comprehensive policies offer wider protection, they remain unaffordable for many motorists, leaving third-party insurance as the most common – and most criticised – option.
Meanwhile, Minister Mhona also defended Government’s decision to scrap retesting for public service vehicle (PSV) drivers, saying the process had become burdensome and inconsistent with the ease-of-doing-business agenda.
He said evidence suggested that road accidents were more closely linked to mental health and behavioural factors rather than physical retesting.
“What we are saying is that the causes of accidents have more to do with the mental status … not necessarily the physical testing.
“This was problematic to our drivers when they go back to VID, there would be corrupt tendencies,” said Minister Mhona.”
Minister Mhona added that Government was consulting stakeholders on reforms to the Vehicle Inspectorate Department (VID), including proposals to reduce its road patrol role and strengthen the Zimbabwe Traffic Safety Council as the lead road safety enforcement agency, subject to public input and legislative approval.
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