Online Reporter
Sifelani Tsiko
Fact Check Editor
Zimbabwe is moving to finalise the Road Accident Fund (RAF) 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 input into the new Bill, which is set to overhaul third-party car insurance — the minimum level of cover one can take out.
This cover is a legal requirement under Zimbabwean law. According to the Road Traffic Act [Chapter 18:11], it is compulsory to have third-party insurance in Zimbabwe. Without it, you cannot obtain a motor vehicle licence or a trailer licence.
Discussions around third-party motor vehicle insurance have generated considerable debate. This policy is used by the majority of Zimbabweans and has long been a cash cow for private sector insurance players in the country.
What does the term ‘third party’ mean?
Insurance experts say the term ‘third party’ refers to a person involved in a car insurance claim who is not you — the holder of the policy or the driver. It usually refers to the other driver involved in an accident.
What does 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 companies to which you pay quarterly or yearly premiums.
It covers compensation for third parties in the event of property damage, personal injury or 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.
Essentially, 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 licence without it?
No. 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?
Rates are currently pegged at US$3 000 for third-party bodily injury and US$2,000 for third-party property damage.
Insurance experts say this type of cover only allows compensation up to a maximum of US$2 000 for property damage and US$3 000 for bodily injury.
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.
Experts add that you are also unable to make a claim if your car is damaged by fire or stolen. If you are injured, you may have to pay for your own medical costs.
What happens if the damage exceeds the threshold?
Payment under this policy is capped at US$2 000 for property damage. If the damage caused exceeds this threshold, you are liable to cover the shortfall yourself.
Aggrieved parties often go to court to claim the difference. Some insurance companies will pay above this threshold if you negotiate for a higher premium.
What if you are involved in an accident and only have third-party cover?
If the accident is your fault, your insurance provider will pay out any required compensation to the other party involved.
This may cover the cost of repairs to their vehicle or personal injury claims.
If the accident is not your fault, experts say your insurer will usually act on your behalf as a go-between with the third-party insurance company.
They will also assist with arranging repairs once it has been confirmed as a ‘non-fault’ claim.
What are the advantages of third-party insurance?
A third-party insurance policy is usually a good option if the value of your car is very low. In addition, many Zimbabweans are compelled 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 models, repairs can be particularly costly, making a full comprehensive policy necessary to cover risks.
Experts also note that it can be frustrating if an accident is not your fault and you are left unable to make a claim, facing a hefty repair bill.
What are the requirements for a third-party insurance claim in Zimbabwe?
To make a claim, you need:
A police report
Proof of insurance
A completed insurance claim form
Your driver’s licence
Quotations for medical treatment or proof of treatment
At least three quotations for vehicle repairs
A death certificate in the event of fatalities
What is the rationale behind the 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 has intervened 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 Zimbabwe’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.
