MVIL only player, says Duma

By PETER ESILA
STATE Enterprises Minister William Duma says the Government will not allow for another motor vehicle insurance player in the market.
Duma said state-owned Motor Vehicle Insurance Ltd (MVIL) was returning good dividends to Kumul Consolidated Holdings Ltd (KCHL). On Friday during MVIL’s opening of its refurbished head office and new logo launch in Port Moresby, Duma said: “We are coming from under increased pressure in lobbying from certain sectors of our community for another competitor to be introduced into our country”.
“We are so lucky that we have only one insurance that is allowed by an Act of Parliament, which is Motor Vehicles Insurance Ltd,” he said.
“In other countries, there is more than one insurance.
“It might not remain the same in the near future, you never know, another Government, another minister might say we need to have another competitor because we all know competition is very good, it is good for the community.”
Duma challenged the staff not to be complacent.
“I challenge all of you to work harder.
“As a minister, I can assure you that I will continue to support you.”
Duma said he would protect the industry against calls for bringing in another competitor.
“MVIL must remain the trustee of vehicle owners’ money,” he said.
MVIL managing director Michael Makap said at the end of 2019, MVIL paid K281 million in dividends to KCHL.
“For 2020, we will be making a net profit after tax of about K67 million and according to the dividend policy of KCHL, I think we will be paying K33 million in dividend for 2020.”