Deal made for third party vehicle insurance contract

The National Business

AN agreement has been signed between the Independent Consumer and Competition Commission (ICCC) and Motor Vehicle Insurance Limited (MVIL) on the new compulsory third party motor vehicles insurance regulatory contract.
The contract provides for certain requirements which MVIL will have to improve on in the next five years.
It will be effective from Jan 1, 2018, to Dec 22, 2022.
ICCC chief executive and commissioner Paulus Ain said some of the key requirements of the contract include:

  • A data management plan to be submitted to ICCC at the end of next July. This is for ICCC to monitor and ensure that information are provided to ICCC as and when requested.
  • The annual maximum premiums are cost-effective and are easy to adjust when risks arise; and
  • A penalty of K500 for MVIL to pay to claimants for the late settlement of their compulsory third party (CTP) insurance claims.

MVIL acting chief executive Bafino Koi said the insurance claims could take about six months to process.
Ain said that under the new contract, MVIL is required to maintain the performance standards including other newly introduced performance standards such as the establishment of efficient data management system.
“Data from reliable sources such as MVIL’s data management system are vital for the purposes of making an informed regulatory decision,” he said.