Farirai Machivenyika
Senior Reporter
THE Insurance and Pension Commission has called on Government to provide more information on operations of the proposed Road Accident Fund meant to compensate those injured or killed in road traffic accident.
IPEC’s position is contained in a paper presented to the Parliamentary Portfolio Committee on Budget, Finance and Investment Promotion by the insurance regulator on its priorities for the 2027 national Budget.
The portfolio committees is conducting consultations with the public and various stakeholders on issues they want addressed in next year’s Budget that is expected to be presented next month.
“Can the RAF strengthen victim protection without duplicating existing insurance?” IPEC queried in its position paper and called on the Government to define ownership of the proposed Fund and “clarify who funds, administers and oversees the RAF.”
IPEC also want Government to align existing insurance cover and make the new scheme complementary by design while closing and resolving regulatory gaps and unfunded obligations before launch.
The insurance regulator also wants Government to, “pass a framework that secures; clear institutional roles; sustainable funding; effective regulatory oversight and an orderly, victim-first transition.
IPEC said it wants stronger protection for road accident victims, building on the motor insurance cover already in place so victims benefit from both.
Last month Transport and Infrastructural Development Minister Felix Mhona said the Road Accident Fund Administration Bill was now at an advanced stage following recent nationwide consultations.
The proposed law represents a major shift from the current system, under which compulsory third-party motor insurance is provided and administered by private insurance companies.
Third-party insurance is mandatory under the Road Traffic Act and is intended to provide protection in cases of death, injury and property damage arising from accidents involving passengers and other road users.
Under the proposed RAF, however, compensation for people injured or killed in road crashes would be administered through a State-run system based on a no-fault principle.
This means a victim would not first have to prove that another driver was negligent before receiving assistance.
