As published in The Daily Times (Malawi) on June 26th, 2024
An incident that happened yesterday at Makungulu trading center on M1 road in Lilongwe has prompted us to write this article. Makungulu is a busy trading center. Residents of this trading center witness all sorts of road incidents - not just accidents.
We were harvesting maize in a garden near the road when we heard a loud noise coming from the road direction. We all flocked to the road. A pick-up had run over two goats that were crossing the road. In the process, it landed on a salon that was rightly and legally parked on the road-side. After several rounds of questions and examinations, it was discovered that the car that influenced the accident had a fake certificate of insurance – disc. Coincidentally, the one that was hit had displayed a certificate of insurance bearing registration number different from the one that was on its number-plate.
First, the cases in point are both fraudulent. On the face of it, insurance fraud looks easy and anyone can be tempted to do it. The Malawi insurance fraternity has often fell prey to unscrupulous individuals of false claims through the use of various tactics, including the use of fake or self-manufactured motor certificates. Thanks to technology and good market practice. These days, any suspicious claim regardless of its value, goes through microscopic scrutiny. If you are found with fraudulent claims, your insurer can proceed with criminal prosecution.
To show vigilance in its approach against the use of fake insurance certificates, Malawi Insurance Association introduced market-harmonized motor certificates many years ago. Insurance Association of Malawi in conjunction with Directorate of Road Traffic & Safety Services (DRTSS) introduced new motor certificates with enhanced security features. The new motor certificate information technology suite operated by insurers is linked to a common system managed by authorities to enhance efficiency and ensure timely delivery. This new system allows a motor insurance policyholder to print the certificate on their own and display on the windscreen. The old certificate system arrangement required an insurance company to issue a hard copy of motor certificate to the user or owner of a vehicle. Thanks to technology, motor insurance policyholders can now print the certificates in the comfort of their offices or homes.
Insurance requires that all motorists carry with them motor policy document every time they drive on a public road. This is tedious. Instead, insurers issue a small document for the motorist to display on the vehicle’s windscreen. The disc, as the certificate is commonly referred to, is issued as proof that the motorist has complied with the country’s law.
The Road Traffic Act of Malawi requires that any use of a motor vehicle on a road, to which the public has access, should have insurance against third party risks. Non-compliance is punishable by either fine or imprisonment or both. A motorist can also be disqualified from holding a driving license for a certain period of time.
The intention of the Act is to ensure that every motorist has funds readily available for legal liabilities to pay damages arising out of death, bodily injury and property damage belonging to third parties including passengers.
Second, it is important to note that insurance cover, signified by the disc, belongs to the owner of the vehicle and not to a driver. Suppose you own a vehicle and have rightly bought third party insurance for it but you happen to use your colleague’s vehicle. It is important to check that the vehicle you are using has a valid insurance in place in the name of the owner. The certificate must be displayed on the vehicle’s windscreen. Note that it is illegal to use a disc – physical - that belongs to one vehicle on another vehicle just like the incident that occurred at Makungulu trading center on M1 road above.
Importantly, each disc carries unique details of the vehicle being insured, that is; registration number, make and color. Would you therefore, use an insurance disc that belongs to vehicle registration number LTC 27 for vehicle TTC 8? The answer is no! Furthermore, when a motor certificate of insurance is lost, insurers require a declaration from the insured party vis-à-vis its loss, before they issue a replacement. Talk to us. We are here to serve you.
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