Government has urged foreign contractors to locally insure their services so that the local insurance sector can benefit.
Transport, Works, Supply and Communications Minister, Yamfwa Mukanga said foreign contractors should into various insurance packages offered local as they carry out various government developmental projects.
Mr. Mukanga said the development will in turn help government to receive revenue from the insurance companies.
ZANIS reports that the minister noted that government is fully aware that various foreign contractors insure their services in their respective countries before coming to Zambia.
He said this in a statement obtained in Lusaka today during the launch of the Statutory Instrument Number 33 of mandatory display of Insurance Discs on all motor vehicles. The new SI 33 will also compel motorists to insure their vehicles.
Mr. Mukanga expressed that the implementation of the new SI 33 and the partnering of Insurance and Construction companies will see the insurance sector increase its contribution to the country’s Gross Domestic Product (GDP) from the current less than two percent to ten percent.
He further said the measure will not only contribute to strengthening the insurance sector but also ensure that the claims from the insurance companies are paid in good time.
Mr. Mukanga has however called on the insurance companies in the country to take advantage of the opportunity to diversify their respective portfolios.
And Mr. Mukanga has urged insurance companies in the country to collaborate with Road Transport and Safety Agency (RTSA) and the Zambia Police to sensitise the general ON benefits of the new SI 33 in terms of benefits.
Mr. Mukanga said government stands ready to support insurance companies so that they can grow and contribute to wealth creation for the young population in the country.