Ministry of Transport and Civil Aviation has announced that efforts are underway to ensure that third-party insurance for road vehicles provides full compensation.
Speaking to PSM News, Deputy Minister of Transport and Civil Aviation Nawaz Shareef emphasised the efforts being exerted by the government under the "Male' Fahi" programme, to alleviate the issues within the transportation sector. The deputy minister stated that efforts are ongoing to address congestion and bring amendments to the vehicle insurance regulations. As such, Nazim revealed that decisions have been made to implement third party insurance and strengthen the regulations such that the third party insurance can provide full compensation.
Furthermore, Deputy Minister Nazim stated that this initiative aims to increase road security and safety, and to ensure that victims of road accidents are provided with sufficient compensation. Nawaz stated that the new regulations prevents the registrations of vehicles without an insurance coverage. Additionally, he disclosed that vehicles which are not insured will not be able to receive any services provided by the ministry. He stated that the change will allow insurance companies to amend their insurance policies as well.
Providing information on the current works of the transport ministry, Deputy Minister Nawaz stated that the works pertaining to bring legislative changes related to the third party insurance scheme is currently ongoing. He also highlighted that the ministry is also working to bring amendments to its regulations as well. Nazim revealed that the ministry aims to ensure that residents are able to benefit from the third party insurance.
Third party insurance is an insurance where one party (the insured) pays to an insurance company (the second party) in return for protection against damage caused to the vehicle or property of a third party by the insured. According to the Third Party Insurance Regulations, the insurance can be provided from insurance companies registered in the Maldives, and have the relevant permits. It states that a compensation of up to USD 3,800 for physical injuries an individual may get during accidents, and a compensation of up to USD 2,500 for property damage to a third party. The insurance will be covered by the respective insurance company, which insured the vehicle.