Over 200 Zupco buses operating without valid passenger insurance

MORE than 200 buses belonging to the Zimbabwe United Passenger Company have since October last year operated without valid passenger liability insurance, exposing thousands of passengers to the risk of not being compensated in the event of accidents, Sunday News reported.

Passenger insurance is mandatory for all public transport and covers medical bills for passengers injured and funeral expenses in cases of death.

The Road Traffic Act requires all public service vehicles to have passenger insurance among other requirements for them to be allowed to carry passengers.

Although Zupco board chairperson, Professor Chipo Dyanda on Friday said the buses were still insured, sources at the bus company and the company that provides Zupco with insurance, Nicoz Diamond, said the company did not renew insurance cover after it expired in October last year.

"Management says all buses on the road are fully compliant. That is the company policy as I told you," said Prof Dyanda.
"We are a responsible company. No bus goes on the road without full compliance," she said.

However, an official with NicozDiamond, which handles the bus company's insurance, said Zupco last covered its passengers at the end of the third quarter of 2013.

The official who refused to be named said the company had not communicated on renewing the insurance since October although the agreement between the two parties was still valid.

The company was charging Zupco insurance costs of US$5 per passenger for a term (four months) plus an additional US$5 for stamp duty.

Alternatively the company charges $15 per passenger per annum and the stamp duty fee will be free if annual premiums are paid at once.
For a 65-seater bus, passenger insurance per term would be about $330 and for a fleet of 200 buses, Zupco would need to pay $66 000 for passenger insurance.

After inquiries from Sunday News last week, the State Procurement Board on Friday floated a tender for the provision of full third party and passenger liability insurance cover for Zupco buses.

However, Nicoz Diamond still insists they have a running contract with the bus company.

"We are not aware of this tender. For the buses we insure the cover is still valid, as far as we are concerned they are still our clients. Zupco has over 300 buses so it might be for the other ones," said the Nicoz managing director, Mrs Grace Muradzikwa.

Nicoz Diamond general manager for operations, Mr Noel Manika, who initially referred this newspaper to an independent broker, (Alexander Forbes) said Zupco was a corporate client and it was common that corporate clients by nature make a number of transactions hence he could not be at liberty to provide a comment.

"I don't know how you got this information but certain things are for certain offices and people should say things within their jurisdiction. We have no comment on the matter," Mr Makina said.

Alexander Forbes broker, Mr Takura Dzimwasha, who handles the Zupco portfolio, declined comment, citing client confidentiality.

"I cannot comment on this issue as I am bound by a confidentiality clause with my clients. I am an independent broker and it would be best for you to seek a comment from Zupco or Nicoz Diamond," said Mr Dzimwasha.

Efforts to get a comment from the Minister of Local Government, Public Works and National Housing, Dr Ignatius Chombo, whose ministry superintends Zupco, were fruitless.

In February, two Zupco buses were involved in fatal accidents in a single day. In one of the incidents, four people were killed when the bus was swept away while trying to cross Musavezi River in Shurugwi while in the other accident several people died on the spot and bodies were scattered all over the accident scene when an abnormal load haulage truck reportedly ripped through the bus.