Axing Road Accident Fund sounds great, but may be divorced from reality

- | 8 months ago

Minister of Finance Tito Mboweni’s suggestion of private premium funded insurance for motorists, to remove the burden on the state of the Road Accident Fund, has been described as good in principle but detached from reality.

The minister told journalists ahead of his budget speech last week that when someone bought a financed car, they were required to produce proof of insurance, saying: “It is your personal responsibility to buy insurance. Don’t burden the state with your carelessness.

” The current scheme, which the National Assembly is currently in the process of replacing with the Road Accident Benefit Scheme, is grappling with financial mismanagement woes and wastage on legal costs.

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