Wednesday, August 4, 2021

Government aims to impose compulsory insurance on all vehicles

The Government is working on plans to impose mandatory insurance on vehicles traveling on Botswana roads as part of measures aimed at reducing the accident rate in the country and ensure that all vehicles are roadworthy.

The Finance and Development Planning Minister, Baledzi Gaolathe, told Hollard Insurance Botswana Breakfast on Friday that government is working with relevant stakeholders to map out a sketch plan before it becomes a bill.

“In view of the continued problem of the carnage on our roads, especially over the weekends, government is currently working with relevant stakeholders such as the Department of Roads Transport and Safety, to consider instituting compulsory motor vehicle insurance for all vehicle that are used on public roads,” he said.

“The issuance of insurance cover may be linked to the roadworthiness of the vehicle. In so doing, we hope to reduce the frequency and severity of accidents that are related to condition of the vehicles,” he added.

The move follows the point system that has being debated for some time which deducts points on drivers who are found to be at fault over traffic laws until they loose their licenses.

However, the proposed new insurance law will not replace the third party insurance, which is being administered by the Motor Vehicle Accident (MVA) Fund.

The MVA, which recently broaden the scope of its coverage from fault to no fault basis, called on stakeholders to come up with measures that would ultimately lower the accident rate in the country to avoid depleting its funds.

At its last financial results, MVA’s Chief Executive Officer, Cross Kgosidiile, warned of the impending challenges facing his organization saying “ strategic interventions will be required to lower road accidents rates” following the no fault system they have endorsed.

“The legislation seeks to broaden the scope of coverage to include all accident victims. Strategic interventions will be required to lower accident rates hence consolidate the increase in road accident claims. This is important in the light of the limited investment opportunities that the fund is permitted to invest in,” Kgosidiile said.


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