BLANTYRE-(MaraviPost)-The Insurance Association of Malawi (IAM) expects an increase in insurance penetration as the country fully migrates to a digital motor insurance system by January 1, 2025.

During the launch of this year’s Insurance Awareness Week some months ago, the Reserve Bank of Malawi (RBM) expressed concern over the continued low uptake of insurance services in the country as statistics and research carried out by various institutions showed the insurance penetration ratio was at 1.9 percent as of December 2023.

But during an interface session to brief police traffic officers and the media in the southern region about the new system in Blantyre on Tuesday, IAM Executive Secretary, Dharles Kasonda-Kuyokwa was optimistic that apart from simplifying life, the digitalized system will help increase the numbers.

“We believe that our numbers will increase because people will not travel to get the services but access them online. Even those in the rural areas will not come to urban areas to get the service. So, numbers in terms of penetration will increase.”

“We would like to ask the public to go and change their insurance certificates if they are still using the old ones, and at the same time we ask them to embrace the new system which is going to help the insurance companies and the public in terms of efficiency,” said Kuyokwa.

Police Regional Traffic Inspector responsible for the South East, Assistant Superintendent Jonathan Chitedze said the new system is vital and will ease their work.

“I am urging the public to comply with the new technologies as also required by the Malawi 2063 agenda,” said Chitedze.

The General insurance companies will cease issuing pre-printed certificates and fully migrate to Digital Motor Vehicle Insurance Certificates (DMVIC) by December 31 this year.

Among other benefits, DMVIC will help the law enforcers to be able to trace stolen and hit-and-run vehicles.

BLANTYRE-(MaraviPost)-Insurance Association of Malawi (IAM) says they expect improved efficiency by all the general insurance companies in the country following the introduction of the new Digital Motor Vehicle Insurance Certificates (DMVIC). 

IAM representative, Dickson Malamba made the remarks in Mzuzu on Monday when the association held an interface session with police traffic officers, the media and others to brief them about the development and key distinguishing features between the old and new certificates. 

He said all general insurance companies will cease to issue pre-printed certificates by December 31 this year, and the new system allows them to use one system for issuing the certificates, therefore there will be no excuses for inefficiency. 

“Effective January 1, 2025, IAM will no longer use pre-printed insurance certificates for printing insurance certificates. Preprinted insurance certificates will be valid until December 31 2026. Further, the system will be instrumental in tracking stolen vehicles and eliminating fraudulent motor vehicle certificates on the roads of Malawi.”

“It is therefore important that we engage these stakeholders including the media so that they help us disseminate the information with the masses,” said Malamba.

Regional Police Traffic Officer for the North, Superintendent Augustine Chakanika commended IAM for the sensitisation meeting. 

“We thank IAM for engaging us and for the new system. Our work involves enforcing such things like insurance, we therefore needed to know of the changes and how to easily track the counterfeit ones through the verification process that we have been told,” he said. 

One of the journalists, Grecian Mbewe from Tuntufye Radio in Karonga also commended IAM for including them in the picture.

“As journalists from community radios, we play a big role in sensitising members of the community on any new developments. Most people follow community radios because they relate well with developments around their locations and the local languages used.

“The DMVIC will play a crucial role in eliminating accidents in our areas especially those caused by drivers with fraudulent certificates, this time they can’t beat the system,” said Mbewe.

Through the system, people can access DMVIC from their brokers digitally using platforms like WhatsApp and then print. 

They can also verify the validity of the certificates using USSD code *4273# or download an application and install in their smartphones.