Chinamasa against Road Accident Fund, says it will add taxes

Finance Minister Patrick Chinamasa is against the plan of his fellow cabinet minister Joram Gumbo to set up a road accident fund. According to Transport Minister Gumbo, the proposed fund will be used to pay for the ambulance and hospital services for the victims of road accidents ensuring that all victims are treated even if they do not have medical aid insurance.

Chinamasa is worried that the proposed new fund will negatively affect the revenues for insurance firms and burden taxpayers. The minister also urged the insurance industry to honour its obligations so that it does not keep getting negative attention.  Speaking to the insurance industry on Monday, Chinamasa said:

There’s a perception that insurance companies don’t want to accept liability and we need to understand and engage those who are advocating for the establishment of the Road Accident Fund and close that perception gap.

It is really such attitudes that can give rise to some of the initiatives that I think are not in the right direction like the establishment of insurance road fund. That basically is reflecting that all is not well in the insurance sector and we need to put our house together, our act together, so that we are seen to honour our obligations.

More: Daily News