Since the publication of the law that requires every motorist to display an insurance disc, a lot of sensitisation has been going on. Despite this education there is still some misunderstanding which I will endeavor to clarify in this article.
A colleague of mine called me last week to explain how a client expressed disappointment on the need to have ‘two’ insurance discs, as opposed to the one which my colleague communicated to him. He (my colleague) had to visit the client to clearly explain the matter to him.
The bone of contention was that Police told him that he needs to get one insurance disc from the insurer and one from Road Transport and Safety Agency (RTSA). This is amusing.
My colleague had a tough time to convince the client on the fact that he only needs one insurance disc which should bear the logo for RTSA and the Insurers Association of Zambia (IAZ).
It was from this episode that my colleague requested me through this platform to explain to the public at large on the correct disc that must be displayed.
Well, firstly I must emphasise that the common insurance disc that must be displayed is just one and NOT two. This disc is issued by insurers or through their intermediaries and not by RTSA.
RTSA only issues road tax, fitness certificates and other road licences but NOT insurance certificates or discs.
Some of the common features of the disc include a logo for RTSA and another one for IAZ. It should also have a period of cover and a quarter covered i.e. first, second, third or fourth quarter accordingly.
The disc must be stamped with an original stamp of the insurer issuing the disc.
If someone has insurance which started running in 2015 and expires in 2016, then such a person should go to their insurer to obtain an insurance disc, at free of charge.
However, if the policy period does not tally with end of quarter, for example, it expires on  February 15, 2016,  then in such a case this person is supposed to have his insurance extended to at least March 31, 2016 in order to get a disc for one quarter.
I know that in some cases some players have continued issuing cover that does not tally with end of quarter periods.
This defeats the very purpose of having insurance discs in the first place because there will be some gaps in cover.
If for example someone is given a disc for a full quarter and yet his insurance expires on February 15, then for the remaining period up to March 31, such a person does not have valid insurance in place.
This means that should there be a loss during that period between February 15 and March 31 that person cannot claim on his policy because there is no insurance.
An insurance disc is ideally supposed to be evidence of insurance in place. It is not insurance on its own.
There must be some underlying which is evidenced through an insurance disc.
Another issue that needs to be emphasized is the need to use the correct ink when a manual disc is issued. This is to avoid fading.
A friend of mine was recently involved in an accident with another person’s car. When they checked the insurance disc it didn’t have an expiry date, whether by design or default.
Before they could go to the insurer who issued the disc, the driver requested my friend to accept settling the matter away from his insurer. This could have been the fear of being exposed to having a disc without valid insurance in place.
The procedure therefore starts with a valid insurance policy followed by a valid insurance disc. There should be no two ways about it.
Government has extended the implementation of this law together with road tax and other licences (excluding fitness certificate) to February 14 2016. The police will then swing into action to ensure compliance by all motorists.
I urge all motorists to get the valid insurance disc before the said date to avoid any inconvenience from the police. Please note that it is only ONE insurance disc required and NOT two.
Comments: webster@picz.co.zm or webster_tj@hotmail.com or on face book search for Insurance Talk-Zambia page or call/text 0977 857 055
(The Author is a Chartered Insurer with more than eleven years industry experience)