06 Dec 2020

There have been 1 131 government vehicle accidents recorded resulting in 1 021 vehicles damaged over the last five years.

On why government vehicles were not insured, Ms Peggy Serame, who was responding on behalf of the Minister of Transport and Communications, said in the past, government had obtained quotations from Commercial Insurance Companies and found that the cost of the premium for the government fleet far exceeded the cost of direct repairs and other costs.

Ms Serame, who is the Minister of Investment, Trade and Industry, cited that in 2018, the estimated annual premium was quoted at P77 536 902 while for that year, the cost of repairs was P3 753 927.

She said the huge difference was the reason why government continued to carry all liabilities incurred in accidents directly. 

She said she was aware that some drivers who were liable for surcharges due to cost recoveries arising from repairs on accident damaged vehicles ended up losing their retirement packages. 

“To address this and related challenges, we have revisited the issue. Indicative cost of premiums are now estimated to be around P15 million per annum,” she said. 

She said the ministry was in consultations with stakeholders among them, employee unions, DPSM, other ministries and insurance companies to insure government vehicles, with the decision expected before the end of this financial year.

Palapye MP, Mr Onneetse Ramogapi had asked the minister to state the total number of vehicles damaged over the last five years. Mr Ramogapi also wanted to know why government vehicles were not insured.

He decried that some drivers could not be paid their retirement packages due to excessive debts they owed from panel beating and associated costs. ENDS