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Motor insurance sector suffers loss

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The shortage of number plates in the country has affected the performance of motor insurance as the Central Vehicle Registry (CVR) made claims that they can only issue number plates to 32 000 vehicles before the year ends against a backlog of 80 000.

ZRP had recently warned the general public that it will impound all unregistered vehicles on the road in a bid to try and contain the number of criminal activities being conducted using unregistered vehicles.

Insurance Council of Zimbabwe (ICZ) chief executive officer Tendai Karonga urged the government department to improve capacity and issue more number plates to the public during a virtual training of journalists.

“Performance of motor insurance was further affected by the Central Vehicle Registry (CVR)’s inability to register vehicles due to lack of financial resources to produce registration plates,”

“This resulted in about 80 000 unregistered and uninsured vehicles on the roads, leading to a loss of the mandatory Third-Party Motor premiums of approximately $60 million,”

He further noted that the situation might persist as CVR has financial resources to provide plates for 32 000 vehicles, leaving more than 48 000 unregistered.

The news that CRV cannot issue 48 000 number plates comes amid reports of an increase in crimes being committed through unregistered vehicles

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