(Last Updated on February 1, 2022 by ZIMDAILY EDITOR)
HARARE – The Insurance Council of Zimbabwe (ICZ) has increased motor vehicle Insurance premiums effective January 25.
The annual premium cover for private cars has been increased to $9 810 while the quarterly premium is now pegged at $3 270.
Insurance premiums had last been reviewed in July last year with the annual cover being pegged at $7 695 while quarterly premiums were $2 565.
In a circular sent out to short-term insurers, the Insurance Council of Zimbabwe (ICZ) advised of the upward review of statutory motor insurance premiums in response to inflation and exchange rate movements.
Insurance and Pensions Commission (IPEC) spokesperson, Mr Lloyd Gumbo, confirmed the review, which became effective from January 25.
Mr Gumbo said the statutory motor third party policy premiums and compensation limits denominated in US dollars are regulated through Statutory Instrument 293 of 2020 of the Road Traffic Act.
He noted that the reviews were necessary to ensure adequate compensation of third parties in the event of a claim.
The current review, said Mr Gumbo, increased compensation limits from $171 000 for RTA and $855 000 for full third party in July 2021 to $218 000 and $1 090 000 respectively effective January 2022.
While most motorists have statutory motor insurance cover, ICZ is encouraging the use of the comprehensive insurance policy, which provides cover for both the policyholder and third parties at higher compensation limits.
The statutory motor policy provides benefits for third parties only.