Electronic insurance cover reduces fraud next to Zero: Zinara
Harare – The Zimbabwe National Road Administration (Zinara) says it has managed to reduce insurance fraud next to Zero since introduction of electronic insurance cover on which firms are linked to Zinara and the Central Vehicle Registry.
The electronic insurance cover enables firms to link to Zinara and the Central Vehicle Registry in databases as a way detecting corruption and flush out fake insurance policies.
Government was losing at least $5.4 million annually to vehicle insurance scammers preying on two thirds of the country’s private and public passenger vehicles.
Zinara Board chairman Albert Mugabe told Insurance24 that unless a vehicle is travelling without Zinara license then there is no room for them to have a fake cover note.
“Since we introduced the e-electronic system we can confidently say that if they are any fake motor vehicle insurance, they are minimal because for one to now be issued with Zinara license, that will be done only for a genuine cover note,” he said.
He said the move also ensures that no motorists could get a vehicle license disc without a valid insurance policy.
Mugabe said the rate of insurance claims was at 50% and there is need for insurance players to up the game in timeous payments.
“We are aware that the claim processing is not up to scratch, its approximately 50 percent .I think the ministry is been engaging insurance companies about that saying they need to up their game and attend to claims timeously,” he said.
As at 2016, a total of 20 out 22 insurance companies had registered for access to the Zinara system. The system records every transaction detail, an automatic online payment and can provide an audit trail for the benefit of all stakeholders that include Traffic Safety Council, Zimra [(Zimbabwe Revenue Authority] stamp duty as well as the insurance companies.
