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Govt loses US$5.4 million to insurance scammers

by Staff reporter
17 Mar 2016 at 06:31hrs | Views
Government is losing US$5.4 million annually to vehicle insurance scammers preying on two thirds of the country's private and public passenger vehicles, it has been established.

As a result, a mere one third of Zimbabwe's half a million vehicle population has genuine cover.

While the innocent victims suffer as the cunning insurance fraudsters line their pockets, government continues to dawdle on formulating policies meant to close the loopholes.

Meanwhile, government plans to introduce electronic insurance cover in which firms will be linked to Zinara and the Central Vehicle Registry databases as a way detecting corruption and flush out fake insurance policies.

Secretary for Transport and Infrastructural Development Munesu Munodawafa said the move would ensure no motorists could get a vehicle licence disc without a valid insurance policy.

He was giving oral evidence before the Parliamentary Portfolio Committee on Transport and Infrastructural Development chaired by Chegutu West MP Cde Dexter Nduna (Zanu-PF).

Munodawafa said most holders of third-party insurance policies could not access services in the event of accidents because fake insurance policies had flooded the market.

Source - Fin Gaz