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Insurance Council Of Zimbabwe Has Increased Motor Vehicle Insurance

Insurance Council Of Zimbabwe Has Increased Motor Vehicle Insurance

The Insurance Council of Zimbabwe (ICZ) has increased motor vehicle Insurance premiums effective January 25.

The annual premium cover for private cars has been increased to ZW$9 810 while the quarterly premium is now pegged at ZW$3 270.

Insurance premiums had last been reviewed in July last year with the annual cover being pegged at ZW$7 695 while quarterly premiums were ZW$2 565.

In a circular sent out to short-term insurers, the Insurance Council of Zimbabwe (ICZ) advised of the upward review of statutory motor insurance premiums in response to inflation and exchange rate movements.

Insurance and Pensions Commission (IPEC) spokesperson, Mr Lloyd Gumbo, confirmed the review.

He said the statutory motor third party policy premiums and compensation limits denominated in US dollars are regulated through Statutory Instrument 293 of 2020 of the Road Traffic Act.

He noted that the reviews were necessary to ensure adequate compensation of third parties in the event of a claim.

Mr Gumbo added that the current review increased compensation limits from ZW$171 000 for RTA and ZW$855 000 for a full third party in July 2021 to ZW$218 000 and ZW$1 090 000 respectively effective January 2022.

While most motorists have statutory motor insurance cover, ICZ is encouraging the use of the comprehensive insurance policy, which provides cover for both the policyholder and third parties at higher compensation limits.

The statutory motor policy provides benefits for third parties only.

More: Star FM news

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