The Insurers have bowed down to pressure from minibus owners hence
they have reversed their decision of hiking insurance premiums by
almost 100%.

The Minibus owners Association of Malawi –MOAM did it well, -it
systematically facilitated operators to stage a sit-in in protest to
that hike- which it describes as injustice.

The insurer; Prime insurance company which MOAM had entrusted,
announced an insurance premium hike effective 1st May 2014 from k220
000 to k490 000 per annum.

However, MOAM’s Secretary General Coxely Kamange threatened that
minibus owners would stage a sit-in and demonstrate against the
decision come Monday 12th May -saying it is not corresponding to the
current rate of accidents and state of affairs.

“Frankly speaking, minibus accidents have reduced over time, the local
currency is said to be appreciating at this period of the year where
economic activities are peaking up.” Kamange said.

However, in a dramatic turn of events, government intervened to force
the insurer to rescind the decision, a development that prevented the
minibus free roads come on Monday.

Speaking in an interview, MOAM’s Chairperson Person Christopher
Chisesele said now that the insurance has been reversed, they will go
on resume to normal business.

“We do not see any reason to continue with the strike as our
complaints have been resolved, we therefore wish to advise our valued
members to resume to their business, and we also would like to inform
the general public that they should not accept any strange fares from
minibus as it is now official that insurance hasn’t been hiked.”
Chsesele said.

It is said that insurance companies are not comfortable with the
raising of bogus insurance some claims claimants are doing such that
the insurers have appealed to judiciary to assist