Give Gov't charge of third-party insurance
THE EDITOR, Sir:
I am shocked at the level of insurance fraud in the transportation sector reported in the press. I would like to suggest a way out of this dilemma that may appear a little out of the box, but might ensure that those needing insurance payouts, the victims in the system, benefit.
Basic third-party insurance is required to be held by every vehicle, while further insurance (the components of a 'comprehensive' policy) is optional. I would argue that the essential third-party section of insurance be organised by Government and paid for by putting a few cents on a litre of fuel. Comprehensive policies can be arranged, as they are now, between the vehicle owner and insurance companies.
This way, we could be assured that all fuel-burning vehicles would be insured if they run into you, and equity would be addressed in that those who drive a lot and burn a lot of fuel would pay more for insurance. It would be one less thing for the police to try to assess when stopping a car to check the papers.
I believe that organising essential insurance in this fashion would be better for all of us, and is unlikely to be unpopular with even insurance companies, which often lose money on car insurance.
The service could be put out to bid to the same insurance companies to be paid for with funds from the fuel charge.
I think the principle is that 'if it is an essential service', the Government should facilitate its organisation. I believe that the coverage of the victims of road accidents is too important to allow the 'bandooloo' sector to sacrifice.
PO Box 597