News / Local
Government takes over third-party motor vehicle insurance
31 Mar 2024 at 03:07hrs | Views
THE Government is finalising new regulations to set up a State-controlled third-party motor vehicle insurance scheme that will assume the responsibility of underwriting compulsory vehicle liability insurance, currently handled by private insurers.
The regulations, set to be unveiled next month, will see private insurers relinquishing their role in underwriting third-party motor vehicle insurance, which is compulsory in terms of the Road Traffic Act.
Presently, it covers death, injury and damage to property in road traffic accidents.
The authorities believe the coverage offered by private insurers is insufficient and often leaves policyholders with additional expenses, especially when claims are made after accidents.
Conversely, the State-backed scheme is envisaged to offer a broader range of benefits, including covering medical expenses incurred following accidents; financial compensation for injuries sustained in accidents; funeral grants in the event of an accident-related death and compensation for lost income due to injuries.
The regulations, set to be unveiled next month, will see private insurers relinquishing their role in underwriting third-party motor vehicle insurance, which is compulsory in terms of the Road Traffic Act.
Presently, it covers death, injury and damage to property in road traffic accidents.
The authorities believe the coverage offered by private insurers is insufficient and often leaves policyholders with additional expenses, especially when claims are made after accidents.
Conversely, the State-backed scheme is envisaged to offer a broader range of benefits, including covering medical expenses incurred following accidents; financial compensation for injuries sustained in accidents; funeral grants in the event of an accident-related death and compensation for lost income due to injuries.
Source - online
