Mashonaland West Bureau
THE motor insurance sector has lost approximately $60 million as a result of 80 000 unregistered and uninsured vehicles that are on the country’s roads.
Recently, the Government launched a blitz on unlicensed vehicles across the country leading to thousands of vehicles being impounded.
The Vehicle Registration and Licensing Act stipulates that each vehicle should be registered and always display registration plates, while a 14-day lifespan is given for temporary registration number plates.
Addressing a virtual media workshop hosted by the Insurance and Pensions Commission (IPEC) and National Social Security Authority (NSSA) recently, Insurance Council of Zimbabwe chief executive, Mr Tendai Karonga, said apart from Covid-19 effects, performance of the motor insurance industry was hampered by the Central Vehicle Registry’s (CVR) ineffectiveness in registering vehicles due to lack of financial resources to produce registration plates.
“This resulted in about 80 000 unregistered and uninsured vehicles on the roads leading to a loss of the mandatory Third-Party Motor premiums of approximately $60 million,” he said.
“Statistics are based on the CVR Registrar’s Report to the Parliamentary Transport Committee on 28 September 2020.”
CVR, Mr Karinga said, had financial resources to provide plates for only 32 000 vehicles, leaving a deficit of 48 000 vehicles.
“Third Party Motor insurance is the largest contributor of premiums to the motor insurance class. Data collection structures are being implemented to accurately record premium contributions of motor insurance sub-classes,” he said.