Insurance premiums for minibuses down to 60%

Insurance premiums for minibuses has gone down to 60 per cent due to the change of the laws because of the covid-19 strict preventive measures.

This means that in times of an accident, insurance companies can only pay up to 60 per cent of the premiums.

This comes at a time when minibus operators in some areas are protesting the government decision to reduce sitting capacity of their minibuses to 60 per cent as a covid-19 preventive measure.

Director of Road Traffic and Safety Services, Fergus Gondwe said at a press briefing that insurance premiums for passenger vehicles have been reduced to 60 percent effective today.

Insurance Association of Malawi, Bywell Chiwoni, says they have agreed to reduce the premiums after being approached by the ministry.

Chiwoni says if minibus operators do not comply with the 60-percent-capacity rule, insurance companies will only be responsible for 60 percent and leave out the rest.

Meanwhile, Chairperson of the Minibus Owners Association of Malawi, Felix Mbonekela, has urged minibus owners to comply with the measures put in place and to always give accurate information to insurance companies.