Fake insurance cover schemes haunt sector

Speaking on the sideline of the 42nd meeting of the COMESA management committee of the Yellow Card Scheme, he said efficiency of the service would be enhanced by computerizing operations of the scheme to curb forgery.

“So far the insurance business has been good and Tanzania has the chance to benefit more in the region because most of the vehicles pass through in the country,” he said.

Mr Kamanga said adding that fake insurance remains a problem and that they have been working with the police to stop the production. He said differences of official languages and legal framework regarding foreign financial operation have delayed the plans to introduce electronic payment, which is expected to end fake yellow cards.

According to the NIC board chairperson Mr Laston Thomas Msongole, the Yellow Card is essentially a Regional third party motor vehicle insurance scheme that provides third party legal liability cover and compensation for medical expenses resulting from road traffic accidents caused by visiting motorists.

He said besides offering third party liability protection to the insured or the driver whilst in a foreign country, the COMESA Yellow Card Scheme also offers emergency medical cover to the driver and passengers of the foreign motor vehicle involved in the traffic accident.

In his speech to open the meeting, the Zanzibar Minister of Finance Dr Khalid Salum Mohamed said asked members to create awareness and that the yellow card must be relevant to travelling motorists, road accident victims, insurance companies and the public in general.

“Accordingly, the general public in our countries and beyond also needs to be aware of the opportunities that are brought by these instruments.”

Ms Immaculate Morro- ‘COMESA Yellow Card Scheme’ Country Coordinator, said the scheme is currently operational in twelve COMESA Member Countries and one non COMESA member Country: Burundi, Democratic Republic of Congo, Djibouti, Eritrea, Ethiopia, Kenya, Malawi, Rwanda, Sudan, Tanzania, Uganda, Zambia and Zimbabwe.

SOURCE: DAILY NEWS

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