THE Common Market for Eastern and Southern Africa (Comesa) Yellow Card (YC) scheme has recorded 42 000 motorists joining it in the past five years.
By Nokuthaba Dlamini
Comesa secretary-general, Sindiso Ngwenya presented the figures at the ongoing meeting of the Council of Bureaux on the Yellow Card Scheme in Victoria Falls.
“During the last five years of the operations of the scheme, the YC has recorded significant achievement and is growing from strength to strength.
“The number of YC issued annually to cross border motorists has increased from 130 000 in 2012 to 172 000 in 2017, while the premium income has risen from $6,3 million in 2012 to 10 million in 2016 and slightly dropped this year to $9,2 million,” he said.
Ngwenya said the number of claims annually reported for payment of compensation to road accident victims doubled to 742 this year, while the reinsurance pool asset had increased from $8,2 million to $13 million.
National bureau member of the Insurance Council of Zimbabwe (ICZ), David Nyabadza said YC had gained significant number of members in the country regardless of several challenges.
“This year, in terms of YC issued and premium generated up to June, our YC increased from $8 880 to $8 895, while our premium gross rose from $850 231 to $884 215 so the growth in number of cards sold and premiums rose to 4%.
“Over the review period, there was a rather subdued claim activity for both the external YC. There were a total of four external YC claims reported during the review period and with a gross reserve of $19 000 on the other hand there were a total of four internal claims reported with a gross reserve of $ 6 400.”
Nyabadza said major challenges faced were centred on YC management systems, which were not a standalone and fully functional resulting in manual use.
“The system has impacted negatively on the operational efficiency of the scheme and on our efforts to grow the volume business but in terms of promotional
activities, we have engaged with our marketing teams to implementing YC predominantly centred on the awareness of motorists,” he said.
The ICZ is an association of all short term insurance and reinsurance companies and under its structure. It has 22 insurance companies that are also active members of National Bureau of Zimbabwe.