Will Government fleet ever be insured?
Government received over P3m through surcharging careless drivers Transport Order and Procedure under review
Indications are that it will take some time before the government fleet can be insured. This is because the Transport Order and Procedures ( TOP) which directed that the fleet be self- insurance is still currently under review.
Currently government is believed to have a fleet of 1200 vehicles which includes heavy plant all managed by the Central Transport Organisation ( CTO).
Minister of Transport and Communications Transport and Communications, Thulagano Segokgo told parliament during the Ministers’ questions and answers time.
Segokgo revealed that since the inception of the Transport Orders and Procedures of 1983, which governs the management of government fleet, the position of government has been that its fleet be self- insured. He said this position was taken based on the cost of insuring a large fleet then, given the limited insurance service providers at the time.
He further said, “The Transport Order and Procedures and the position on selfinsurance are under review, consultations with stakeholders are on- going and my ministry is engaged with the Ministry of Finance and Economic Development on the matter”.
Segokgo said drivers are only surcharged for preventable accidents after their cases have gone through the necessary inquiry to establish liability. He said “If a driver is found to be liable for a surcharge, they are not charged the full amount, government incurs costs of repairing the damages occasioned by the accident”.
Further that the surcharge is a small percentage based on several factors including, the take home salary, the age, the retirement date and other considerations of the welfare of the driver.
He said it is also worth noting that even where vehicles are insured, there is a certain amount that government will have to pay, which is around two to five per cent of the accident repairs costs. Segokgo said in cases where drivers will be deemed to have been negligent or careless, they will still be surcharged for the insurance excess that government will have to pay the insurance company.
Segokgo acknowledged that his ministry is aware that District Councils insure their fleet. He revealed that as part of their bench marking process on the possibility of insuring the government fleet, Central Transport Organisation ( CTO) has liaised with the Ministry of Local Government and Rural Development, which procures insurance services for District Councils’ fleet to find out how they procure the services and appreciate potential challenges.
He c on f i rme d that the sum of P3, 650,485.33 has been surcharged to drivers as a result of accidents when using Government vehicles in the last three years.
The data was obtained from the available Annual Statement of Accounts ( ASA) for the years 2017, 2018 and 2019.