CIB Insurance Solutions makes statement regarding compulsory third party insurance
They say it will have to be properly managed in order to work.
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CIB Insurance Solutions has released a statement regarding the third party compulsory car insurance that the government has proposed for the future.
CIB said that while this type of insurance is very important for South African drivers, it has to be properly managed in order to work.
"Any potential problems are likely to depend on the exact structure that the compulsory third party motor insurance scheme takes," said the group.
According to the group, the responsibility of the proposed scheme should be on the local insurance industry, and should not follow the same structure as the Road Accident Fund.
"We do expect that once the scheme is up and running and any issues have been ironed out that the consumer should be better off in the long run," said the director of actuarial and risk services of CIB Solutions.
Statistics say that only 2.85 million of the 9.5 million registered cars on the road are insured, meaning only around 30% of them.
"Higher traffic volumes coupled with an increasing number of un roadworthy and uninsured vehicles, and a road network that is under increasing pressure, means insured motorists in South Africa have been exposed to an increased risk and escalating costs," said the director, Von La Chevallerie.
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