THE Zimbabwe National Road Administration (Zinara) and insurance companies have begun the computerisation exercise of third party motor insurance cover amid claims fake notes had flooded the market.
BY BUSINESS REPORTER
In a statement yesterday, Zinara said the directive was with effect from the beginning of this month.
“The Zimbabwe National Road Administration (Zinara) in conjunction with insurance companies would like to notify all motorists, transporters, companies and the public that for their convenience, Zinara and insurance companies will implement the computerisation of third party motor insurance cover with effect from May 1 2016,” Zinara said.
In March, Transport and Infrastructure Development minister Jorum Gumbo (pictured) told the National Assembly that corruption was rife in vehicle insurance to the extent that the Traffic Safety Council of Zimbabwe (TSCZ) had experienced problems in collecting the 12% levy from third party insurance firms. He said TSCZ was losing an estimated $5,4 million annually. The levy TSCZ gets from insurance companies was for road safety communication.
Chairperson of the Transport and Infrastructure Development Parliamentary Portfolio Committee Dextor Nduna said in March that TSCZ could have received up to $8,5 million annually given the high traffic volumes in the country.
“In 2015, about 571 000 vehicles were insured and what was supposed to accumulate to the TSCZ was $8,5 million.
“Since dollarisation in 2009, about $59 million could have been lost due to non-remittance of the levies to TSCZ. We have never gone below 400 000 vehicles,” Nduna said.
