Online Reporter
Sifelani Tsiko
Fact Check Editor
Zimbabwe is moving to finalise the Road Accident Fund Bill which seeks to take over the administration of compulsory third-party motor insurance from private players to ensure victims receive medical attention and adequate compensation on time.
Public consultations are underway across the country to elicit inputs into the new bill that is set to overhaul the third party car insurance – a minimum level of cover one can take out. This cover is a legal requirement under Zimbabwean laws. According to the Road Traffic Act [Chapter 18:11], it is compulsory to have third party insurance in Zimbabwe. Without it, you cannot get a motor vehicle license or for a trailer. Discussions around third party motor vehicle insurance have generated a lot of debate. This policy is used by the majority of Zimbabweans and has for a long time been a cash cow for private sector insurance players in the country.
What does the term ‘third -party’ refer to?
Insurance experts say the term ‘third party’ refers to a person involved with a car insurance claim who is not you – the holder of the policy or the driver. So this is usually used to refer to the other driver involved in an accident.
What does the third party insurance cover?
In simple terms, a third party car insurance policy ensures that if you cause an accident, any damage to the other person’s vehicle or property will be paid for by your insurer. Insurers are insurance companies where you pay quarterly or yearly premiums. It covers the compensation of third parties in the event of property damage, personal injury as well as death. This form of insurance does not cover the vehicle owner or anyone in or disembarking from the insured vehicle in the event of an accident. It allows for third parties who might get injured, die or experience property damage to be compensated where the cause is the insured vehicle. In essence, this policy covers liability to a third party who has suffered bodily injury, death or property damage through your fault.
Can you get a motor vehicle license without it?
No, you cannot. Third party insurance is compulsory in Zimbabwe. It is a passport for one to obtain a vehicle licence from the Zimbabwe National Roads Administration (Zinara).
What are the cover limits for third party insurance policy?
Rates are currently pegged at US$3 000 for third party bodily injury and $2 000 for third party property damage. Insurance experts say this type of cover only allows compensation up to a maximum of USD$2 000 for third party property damage and USD$3 000 for third party bodily injury. A third party car insurance policy ensures that if you cause an accident, any damage to the other person’s vehicle or property will be paid for by your insurer.
Does this cover your own vehicle?
No, it does not. Damage to your vehicle will not be covered and you will need to pay the bill yourself to get things fixed. Insurance experts further add that you are also unable to make a claim if your car is damaged by fire or stolen. If you are injured, you might have to pay for your own medical costs.
What happens if the damage you cause is above the threshold?
Payment of damage under this policy is up to a maximum of USD$2 000. If the damage caused exceeds the USD$2 000 threshold, you are liable to cover the shortfall yourself. Very often, aggrieved parties go to courts to claim for the difference. Some insurance companies can only pay above this threshold, if you negotiate for a higher premium.
What happens if you are involved in an accident and only have third party cover?
If the accident is your fault, then your insurance provider will pay out any required compensation to the other party involved. This may cover the cost of getting their vehicle fixed or personal injury claims.
And, if the accident is not your fault, what happens?
Experts say in the event of a non-fault claim, your insurer will usually act on your behalf as a go-between with the third party insurance company. They will also usually assist with arranging repairs once it has been confirmed as ‘non-fault’.
What are the advantages of a third party insurance policy?
A third party insurance policy is usually a good option if the value of your car is very little. In addition, many in Zimbabwe are forced to take up third party car insurance if their vehicles are more than 15 years old. Very few insurance companies offer comprehensive insurance for vehicles older than 15 years. However, for newer model vehicles, paying for repairs can be particularly costly. This then makes a full comprehensive policy necessary to cover risks. Experts also say it can also be particularly frustrating if an accident is not your fault and you are left unable to make a claim and with a rather hefty repair bill.
What are the requirements for a third party insurance claim in Zimbabwe?
In order for you to make a claim using third party insurance, you need the following:
-A police report
– Proof of insurance
– A completed insurance claim form
– Your driver’s license
– Quotations for medical treatment or proof of treatment
– At least three quotations for vehicle repairs
– Death certificate in the event of death(s)
What is the major rationale behind the new proposed Road Accident Fund Bill?
Government says under the current system, a sizeable portion of the third-party insurance premium is absorbed by administrative costs, with complexities in the claims process causing financial hardship for victims. In numerous cases, the Government intervenes to support accident victims with coffins, transport and other funeral expenses. The RAF will operate on a no-fault principle, meaning victims will not need to prove another party’s negligence to receive support for evacuation costs, medical expenses and funeral costs — all of which will be capped through regulations. Government says this system is intended to speed up assistance to the injured and bereaved. The Bill is part of a broader, urgent reform of Zimbabwe’s road safety ecosystem, aligned with the targets of the National Development Strategy 2 and Vision 2030.
How many people die on the country’s roads?
According to the Road Safety Performance Review launched by President Mnangagwa in 2022, a traffic crash occurs every 15 minutes, resulting in over 35 000 crashes, at least 1 800 deaths and more than 10 000 injuries annually. Government is taking practical steps to review all legislation governing road safety. This includes plans to strengthen the Traffic Safety Council of Zimbabwe with enforcement powers, digitise traffic management systems, introduce a penalty points system for drivers and more strictly regulate driving schools and public service vehicles.
