16 Jul 2013

Parliament has been informed that Central Transport Organisation (CTO) vehicles are not insured in accordance with government’s transport policy document.

Answering a question, the Minister of Transport and Communications, Mr Nonofo Molefhi said government did not intend to insure its vehicles since it would not be cost effective considering the accident rates in the government fleet.

Mr Molefhi explained that the size of the government fleet was about 11 000 including plant items and the accident rate was about 900 per year which converted to eight per cent of the total vehicles. “This therefore means that although the cost of repairs depends on the severity of the damage on the vehicle, most of the accidents are minor."

The total annual cost of repair averaged P9 million whilst the estimated insurance averaged at least P3 000 per annum and this added up to at least about P33 million if all the government vehicles were to be insured,” he said. Mr Molefhi therefore said it would not be cost effective to insure all government vehicles.

While drivers had lost a lot of money through accident surcharges, Mr Molefhi said one should note that the driver paid a maximum of one sixth of their gross monthly salary for a period not exceeding 60 months regardless of the cost of repairs to the accident damaged vehicle. He said the intention of the surcharge was to reduce the cost to government and also to encourage the drivers to drive with due care and attention.

Kgalagadi South MP, Mr John Toto had asked the minister whether he was aware that a number of CTO drivers had lost money in paying for accident damaged vehicles that were not insured while their counterparts at councils pay excess only. Mr Toto also asked whether the minister would consider insuring government vehicles. ENDS