Pas­sen­gers lobby for com­pen­sa­tion hike

The Sunday Mail (Zimbabwe) - - FEATURE - Sun­day Mail Re­porter

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 vic- tims 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.”

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