CBZ Life suspends insurance cover for MPs cars

CBZ Life has suspended insurance cover for MPs vehicles after government failed to pay full comprehensive cover for the 370 vehicles.

MPs and senators were given Ford Ranger vehicles from Croco Motors on loan two months ago under section 1.2 of the Addendum to the Parliamentary Vehicle Loan Scheme.

The comprehensive cover for the motor vehicle was supposed to run for a period of 12 months.

The lawmakers were advanced a $35 000 vehicle loan by Treasury to purchase the vehicles.

While government had entered into an agreement with CBZ to pay Croco Motors the $35 000 per vehicle, they were supposed to pay directly for the vehicles' insurance, estimated to be about $790 per vehicle. But Government has however failed to pay.

On July 18, CBZ Life wrote to MPs to inform them that it had suspended cover on all policies.