Time up for bogus car insurers
Zvamaida Murwira Senior Reporter
Government plans to introduce electronic insurance cover in which firms will be linked to Zinara and the Central Vehicle Registry databases as a way detecting corruption and flush out fake insurance policies, legislators heard yesterday.
Secretary for Transport and Infrastructural Development Mr Munesu Munodawafa said the move would ensure no motorists could get a vehicle licence disc without a valid insurance policy.
He was giving oral evidence before the Parliamentary Portfolio Committee on Transport and Infrastructural Development chaired by Chegutu West MP Cde Dexter Nduna (Zanu-PF).
Mr Munodawafa said most holders of third-party insurance policies could not access services in the event of accidents because fake insurance policies had flooded the market.
“That is why we are having a lot of people selling insurance policies. That is not normal. Over the past three months we have engaged insurance companies. Our idea is to link all insurance companies to Zinara and CVR so that one cannot get a vehicle licence without a valid insurance policy,” said Mr Munodawafa.
Warren Park MP Engineer Elias Mudzuri (MDC-T) accused ministry officials of complicity in the fake insurance racket given that most dealers accosted motorists with impunity right in front of Government offices like the Vehicle Inspectorate Department and Zinara.
Once the programme is implemented, more than $36 million is expected to be raised per term through third-party insurance from about 1,2 million vehicles currently on the Zinara database. Insurance firms levy vehicle owners $30 per term.
Responding to another question, Mr Munodawafa said his ministry abandoned a financing deal to fund the Norton-Kadoma dualisation project to the tune of $150 million after the Development Bank of South Africa proposed a two cents increase in the price of fuel and diesel for the financial institution to recover its money.
Mr Munodawafa said Cabinet noted that the increase would have an adverse effect on inflation and the cost of living as it had ripple effects on downstream end-users.
Turning to the Plumtree-Mutare Road, Mr Munodawafa said out of the $206 million debt to DBSA, only $9 million was outstanding.
He said Government, through the Department of Roads, would take over management of the road after 10 years in terms of their agreement with Group Five, and that the contractor would attend to any defects detected on the road.
“Group Five as the contractor is obliged to maintain the road to acceptable standards for the next 10 years,” said Mr Munodawafa.
Turning to the parastatals falling under his ministry, Mr Munodawafa said they were identifying strategic partners for Air Zimbabwe and the National Railways of Zimbabwe.
In a related matter, the National Assembly was forced to adjourn for lack of a quorum after some Zanu-PF MPs walked out just as MDC-T legislators were about to move a motion on the whereabouts of journalist-turned-MDC-T activist Itai Dzamara.
Kuwadzana East MP Mr Nelson Chamisa wanted to move the motion but was unsuccessful owing to the absence of 75 legislators to constitute a quorum.