19 May 2016

The Botswana Insurance Company has announced a new product dubbed Third Party Only. According to a press release from the company, the offering is a necessary protection for motor owners.

“In the 1980s, due to increases in road accident occurrences and their impact on the insurance industry, there was a drive to increase premiums, which subsequently led to the enactment of the Motor Vehicle Fund Act of 1986,” says the release.

The release says Third Party cover in the case of the Motor Vehicle Accident Fund means compensation against bodily injury or death arising out of a motor vehicle accident, including claimant’s costs, emergency treatment and hospital expenses. 

It further says that the cover is only limited to medical expenses and rehabilitation, funeral expenses, loss of earnings, loss of support and incidental expenses. It does not cover for damages to third parties’ property.

“Third Party Only provided by BIC covers the insured against bodily injury or death caused to any person, or damage caused to their property that the insured may be held legally liable for, due to their use of the insured vehicle,” the release says.

The communique states that the policy does not cover damage to the insured’s own vehicle and it is of utmost importance for the insured to obtain adequate cover in that regard. It says that the introduction of compulsory third party insurance would substantially reduce the financial burden on motor vehicle owners from risks arising from damages caused to third parties.

It says Third Party Insurance is in most cases the cheapest option with premiums as low as P125 per month on average.

“Nonetheless, it is imperative for motor vehicle owners to be aware that Third Party Insurance will not offer the same level of protection as the comprehensive motor cover, which is a policy that covers your vehicle if it is lost or damaged by fire or any act of nature,” it states. ENDS