Staff Writer
Zimbabwe’s Cabinet has approved the Principles of the Road Accident Fund Bill, which seeks to address the current post-accident management framework, with the existing insurance packages lacking provision for immediate evacuation of accident survivors to medical facilities.
The Road Accident Fund will be funded from motor vehicle insurance premiums and any other such funds appropriated by the treasury.
During a post-Cabinet briefing in Harare yesterday, Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said the Road Accident Fund also seeks to address gaps in the current post-accident management frameworks in insurance companies.
He said the fund will also enhance the capacity of emergency service providers and medical institutions to effectively respond to road traffic accidents.
According to the Post Cabinet press statement, the main objective of the Road Accident Fund Bill which will emerge from the principles is to reduce deaths and injuries from road traffic accidents by 2030 through access to safe, affordable, and sustainable transport systems as well as improving road safety for all.
“The Road Accident Fund Bill seeks to address the current post-accident management framework, with the existing insurance packages lacking provision for immediate evacuation of accident survivors to medical facilities.
“Emergency services providers are reluctant to provide medical services in instances when payment for service is not guaranteed,” reads part of the statement.
According to the statement, the current liability cover is inadequate to cover medical and funeral expenses.
“The Road Accident Fund will place greater focus on enhanced responsiveness to post-crash emergencies in order to improve the ability of health and related systems to offer appropriate emergency treatment and longer-term rehabilitation for accident victims,” the government said.
It added that the Fund will provide immediate recourse to medical and funeral expenses and enhance the capacity of emergency services providers and medical institutions to effectively respond to road accidents to save lives.
Third-party motor vehicle insurance is compulsory and is issued in fulfilment of the Road Traffic Act.
While insurance companies have previously argued that they stand to lose approximately 40 per cent of their incomes through loss of third-party cover, the government argued that the role of insurance companies in road disasters is insignificant, and yet they are liable as a result of third-party insurance (TPI) cover they run for motorists.
The government has also often accused insurance companies of reacting slowly to road disasters, leaving the state to carry the burden alone, and yet under third-party insurance, the claimant’s first port of call is the owner of the vehicle, who makes the claim according to provisions of the Road Traffic Act.
According to the insurance industry, the fund would result in a loss of business and income generated from motor insurance.
