The Insurance Council of Zimbabwe(ICZ) has increased motor vehicle Insurance premiums effective January 25.
The new prices will see the annual premium cover for private cars h being pegged at $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.
ICZ Marketing and Public Relations Manager, Ringisai Batiya
The Insurance Company of Zimbabwe reviewed upwards the insurance premium in response to inflation and exchange rate. The current review is effective 25 January 2022,” Batiya said.
Meanwhile, the Insurance and Pensions Commission (IPEC) spokesperson Lloyd 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.
Gumbo said the reviews are 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 provide benefitsit for third parties only.