A review paper of the Compulsory Third Party (CTP) Motor Vehicles Insurance Regulatory Contract for Motor Vehicle Insurance Limited (MVIL) started on May 1, 2017.
The Independent Consumer and Competition Commission (ICCC) CEO, Paulus Ain said it will run for eight months.
The review will imposed on the next regulatory period commencing 2018 - 2022.
“Because MVIL has a monopoly in the supply of CTP motor vehicles insurance, the contract, which is binding on the ICCC and MVIL, allows for the regulation of MVIL’s CTP premiums and service standards to ensure that they are reasonably fair,” Ain said.
He commended MVIL in establishing offices in all provincial centres nationwide.
Ain said it is also a requirement in the contract for MVIL to process genuine claims relating to motor vehicle accidents within six months from the date of receipt of the claims.
“If MVIL fails to process and settle the genuine claims within six months than it is required to pay a penalty of K500 to the claimant when making payments after the six months.
“Due to the roll out of its provincial branches in all the 22 provinces this has resulted in MVIL being efficient in its service provision and hence promptness in processing claims’ payment,” Ain said.
He also raised the concern of all PMVs paying the same premium regardless of their capacity, i.e. 25 seaters or 15 seaters, etc.
“The ICCC requires views from the public whether it is fair for PMV owners, particularly the small PMVs (capacity of 16 seaters and less), to pay the same premiums as the larger PMVs,” Ain said.
“Stakeholders, vehicle owners and clients and the general public are invited to read the Issues Paper and respond to these issues to ensure that any decisions emanating from the Issues Paper are based on wider consumer interest.”