$1 million paid out to accident victims

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THE Insurance Company of Zimbabwe has paid out $1million to compensate accident victims who were involved in separate road accidents in recent years.

The Insurance and Pensions Commission (IPEC) acting commissioner, Mr Blessmore Kazengura said the insurance industry has compensated accident victims in the past six years.

“Some of the five major bus accidents include the Megalink bus crash in 2012 after which $116, 500 was paid out; the Zupco bus accident in 2014 ($102, 200); another Zupco crash in 2015 ($116, 500); King Lion in 2017 ($265, 500) and the recent Smart/Bolt Cutter Rusape disaster ($350 000).

“However, the amount is likely to rise because some of the injured passengers are still admitted in hospitals,” he said.

Mr Kazengura explained that the passenger insurance covers the death and injuries of public transport road accident victims.

Passenger insurance is a statutory requirement for all passenger public service vehicles.

The increase in the number of road accidents has prompted Cabinet to create a Road Accident Fund, which will be administered through the Ministry of Transport, Communication and Infrastructural Development.

In an interview, Transport, Communication and Infrastructural Development Minister Cde Biggie Matiza said consultations are underway for the creation of the Road Accident Fund.

“The Road Accident Fund is an urgent matter due to the increased number of accidents,” he said.

“We are planning the benefit structure and the capitalisation of the fund before the end of this year.

“We will work with IPEC to come up with the fund.”

Mr Kazengura said IPEC has already advised Government on how to implement the Road Accident Fund.

“One of the commission’s functions, in terms of the Insurance and Pensions Commission Act, is to advise the Minister of Finance and Economic Development on matters pertaining to insurance and pensions,” he said.

“Government has requested for that advice on the proposed Road Accident Fund, which we have provided through the Ministry of Finance and Economic Development.

“At this juncture, we are not at liberty to get into the details of the nature of advice, suffice to say, we have submitted our position.”

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