Sundaymail Editor
Online Reporter
The Insurance Council of Zimbabwe (ICZ) has increased motor insurance premiums in response to inflation and exchange rate movements.
Third-party insurance packages have risen by 14 percent from $7 695 to $9 810 per annum.
In a statement, ICZ said the new tariffs came into effect on January 25.
“The review is not related to the ZINARA licence fees as stated in some quarters … the annual Road Traffic Act (RTA) cover premium for private cars will be $9 810 and the quarterly premium will be $3 270, up from the July 2021 rates of $7 695 and $2 565, respectively,” said ICZ.
Full-cover premiums are determined by the value of the vehicle.
Compensation limits for third-party insurance have increased from $171 000 to $218 000, while the full-cover threshold has expanded from $855 000 to $ $1 090 000, respectively, effective January 2022.
“The adjustment was justified as a necessity to hedge insurers against sub-economic premium rates that will result in operational losses as well as the inability to compensate victims adequately and timeously.”
Motorists have been urged to get full-cover insurance instead of third-party packages.
Online Reporter