A Memorandum of Understanding was signed yesterday by Motor Vehicle Insurance Ltd and Kerema DDA for subsidized Motor Vehicle Registration and Compulsory Third Party Insurance Services.
The one-year MOU will mean PMV owners and operators in Gulf Province get subsidies on their PMV registration and Compulsory Third Party Insurance costs by the Kerema DDA.
A K200,000 PMV subsidy funding was earmarked for this, and parked with MVIL.
MVIL will facilitate the subsidy arrangement consistent with all existing MVIL registration and CTP insurance requirements. There are five existing requirements which apply to both new and existing PMVs seeking renewal.
The subsidy arrangement has 13 guidelines for both the MVIL, the DDA and the PMV owners and operators to follow.
Kerema MP, Thomas Opa said bad road conditions, cost of vehicle parts and impact of seasonal cas-crops such as betelnut continue to affect the growth and sustainability of the operations of many Micro, Small and Medium enterprises (MSME) in Kerema and other parts of Gulf province.
MVIL Chief Executive Officer Michael Makap expressed gratitude to MP Opa and the DDA for their foresight.
He encourages other likeminded provincial and district leaders to partner with MVIL and enhance rural transport services in their respective constituencies.