Government, Insurance Council Sign MoU to Strength...

Government, Insurance Council Sign MoU to Strengthen Passenger and Regional Motor Insurance

Oscar J Jeke

Zim Now Reporter

The Ministry of Transport and Infrastructural Development and the Insurance Council of Zimbabwe have signed a Memorandum of Understanding aimed at enhancing insurance coverage for public transport passengers and strengthening the COMESA Regional Third-Party Motor Vehicle Insurance Scheme.

The agreement was signed in Harare on Thursday afternoon by the Permanent Secretary for Transport and Infrastructural Development, Engineer Joy Makumbe, and ICZ Chief Executive Officer Donald Muthe. The MoU establishes a framework for collaboration on enforcing minimum passenger insurance requirements for public service vehicles, as well as facilitating the issuance of COMESA Yellow Cards, a regional third-party insurance scheme for cross-border motorists.

Engineer Makumbe said the agreement marks a significant milestone in the country’s road safety efforts. “This agreement is a significant step towards enhancing road safety by ensuring robust protection for the commuting public,” she said. She further reiterated government’s commitment to crafting strong legal, policy, and administrative tools to reduce road traffic injuries and fatalities.

Muthe said the partnership would enable insurance providers and regulators to work more closely to ensure mandatory coverage is not only available but strictly enforced. “The MoU establishes a collaborative framework for the issuance of minimum insurance cover for public service vehicle passengers and COMESA Regional Third-Party Motor Vehicle Insurance,” he said.

The COMESA Yellow Card Scheme allows for third-party liability coverage across participating member states, ensuring compensation for victims of road traffic accidents caused by foreign motorists. A single Yellow Card issued in one country is valid across multiple COMESA states, simplifying cross-border travel for motorists and freight operators.

The MoU is poised to also promote better data sharing between the government and the insurance sector, improve monitoring of compliance, and ensure passengers and accident victims are financially protected.

The agreement comes amid growing concern over the safety of public transport in Zimbabwe and the need for improved mechanisms to enforce minimum insurance compliance, especially in the public transport sector.