Government Mulling Compulsory Car Insurance

June 29 - Responding to comments made by South African Transport Minister Sibusiso Ndebele that the government is "considering making third party insurance a requirement" in the country, a spokesman for the ministry noted that such an idea would take a long time to actually implement.

"It's going to take a while," said Logal Maistry. "We're still in the very early brainstorming stage on this."

The spokesman could confirm that the compulsory car insurance being considered pertained to damage. It was not in place of injury and death cover that drivers and passengers are covered for under the Road Accident Fund.

This is the first time that the insurance sector has learned about possible changes, and private companies have not been consulted on the matter.

The spokesman could not provide any more details of the proposed plan, including how much drivers would need to pay for the compulsory new insurance.

However, he did say that motorists would be paying cheaper insurance rates as a result.

"This is one of the things we want to ensure," said Maistry. "Damage insurance has to be affordable."

Comments made by Ndebele were themselves in response to a question posed to him by Peter Smith of the Inkatha Freedom Party.

Speaking about a 'strategy' that the government is still in the stages of developing, Ndebele said: "This strategy would take into consideration the financial status of motor vehicle owners, the current fuel levy system operated in South Africa and the proposed harmonization of motor vehicles' third party insurance being discussed at Southern African Development Community level."