Minibus Owners Association of Malawi (MOAM) has threatened to hike bus fares with over 100 percent if insurance companies will not rescind their decision to increase minibus insurance premiums.
Earlier this week, insurance companies in the country announced an adjustment in minibus and bus insurance policies with a 105 percent, arguing the increment has been done due to increase in numbers of minibus accidents.
The Premiums have been adjusted from K95, 000 to K209, 000 and MOAM has since threatened to hike its fares if government and other relevant authorities will not intervene on the issue.
And if MOAM adjust bus fares that mean minibus commuters will be forced to pay double the current bus fare.
“There is nothing we can do but to increase our bus fare double the current amount. Much as we agree with the adjustment of insurance premiums, but we feel the current adjustment is gloss because its not MOAM members who will suffer but local people. We feel the adjusted amount is not fair and they need to reconsider,” MOAM spokesperson Coxsily Kamange explained in an interview.
Kamange said they were currently engaged in meetings with ministry of transport and public works and other undisclosed authorities in order to influence the insurance companies readjust the premiums to a moderate amount.
“At first we were paying K1, 000 per passenger as insurance and now it is at K2, 000, how can we afford that? This insurance increment is totally ill-timed because currently the country is facing a lot of problems such as increase in prices of basic commodities and if we increase our bus fares, surely there will be more tension than before because I don’t think many people will be able to afford the new fares,” Kamange lamented.
The news of minibus fare hike has created tension among minibus commuters who are currently failing to come to term with the last year’s bus fare increment.