Online Reporter
The Herald, 10 April 1981
MOST private motorists in Zimbabwe who have more than the minimum legal third party insurance will have to pay 33,5 percent more for their car insurance from May 1, and the premium for most commercial vehicles goes up by 50 percent.
The Increases will be announced today by the Insurance Council of Zimbabwe on behalf of most of the tariff and non-tariff companies. A. Press advertisement today lists 21 companies which are raising premiums.
Motorists with only the minimum Act only are not affected, and the basic figure for private cars remains at $14 a year.
The Increases apply to till third party in which accident damage to other vehicle is covered and to comprehensive in which damage to both vehicles is covered.
The Increases do not apply to motorcycles. The Insurance Council says the increases are necessary because of the rising cost of repairs, spare parts and labour, and because of the number of vehicles being stolen.
Mr. Paul Todd, secretary of the council, said yesterday the last increase in premiums was in 1976.
Quoting Government statistics, he said the number of reported accidents in Zimbabwe in the first 10 months of last year had increased by 25 per cent from 9697 to 11 838.
The number of people killed rose from 544 to 839, and injured from 5185 to 7305.
In the four months September to December 600 vehicles had been stolen, double the number for the same period in 1979. He said the 50 percent Increase for commercial vehicles was due largely to the difficulty in getting spare parts.
Lessons for today:
- These lessons still apply to modern transport systems, insurance markets, and road safety management.
- Rising costs in the economy affect insurance premiums. Premiums went up because repair costs increased, spare parts became more expensive, labour costs rose. Inflation and supply-chain challenges directly affect the cost of insurance.
- More road accidents mean higher insurance costs, Accidents rose by 25%, and deaths and injuries also increased significantly. Poor road safety leads to higher insurance premiums for everyone.
- Vehicle theft influences premium increases. 600 vehicles were stolen in four months, double the previous period. High crime levels push insurance companies to raise premiums to cover increased risk. Now modern solutions like tracking devices, secure parking, stronger policing has helped to reduce theft-related claims.
