The Insurance Association of Malawi (IAM) says it expects a rise in insurance coverage penetration because the nation absolutely migrates to a digital motor insurance coverage system by January 12025.

During the launch of this yr’s Insurance Awareness Week some months in the past, the Reserve Bank of Malawi (RBM) expressed concern over the continued low uptake of insurance coverage companies within the nation as statistics and analysis carried out by varied establishments confirmed the insurance coverage penetration ratio was at 1.9 % as of December 2023.

But throughout an interface session to temporary police site visitors officers and the media within the southern area in regards to the new system in Blantyre on Tuesday, IAM Executive Secretary, Dharles Kasonda-Kuyokwa was optimistic that aside from simplifying life, the digitalized system will assist enhance 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,” stated Kuyokwa.

Police Regional Traffic Inspector accountable for the South East, Assistant Superintendent Jonathan Chitedze stated the brand new system is significant and can ease their work.

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

The General insurance coverage corporations will stop issuing pre-printed certificates and absolutely migrate to Digital Motor Vehicle Insurance Certificates (DMVIC) by December 31 this yr.

Among different advantages, DMVIC will assist the legislation enforcers to have the ability to hint stolen and hit-and-run automobiles.