20. Certain references in sections 25 to 29
References in sections twenty-five to twenty-nine to a statutory policy, an insurer or an insured shall be deemed to include references to a statutory security, a giver of a statutory security or a person secured by a statutory security, as the case may be.
21. President may suspend or restrict operation of Part IV
The President may, by statutory instrument:
(a) suspend the operation of this Part or restrict such operation to any particular class of motor vehicle or trailer; or
(b) revoke or vary a suspension or restriction referred to in paragraph (a).
22. Users of motor vehicles and trailers to be insured against third-party risks
(1) Subject to this Part, no person shall use a motor vehicle or trailer on a road unless there is in force in relation to the use of the motor vehicle or trailer by the user:
(a) a policy of insurance; or
(b) a security;
in respect of third-party risks which complies with the requirements of this Part.
(2) The State or the government of a country, other than Zimbabwe, designated by the President by statutory instrument may undertake the insurance in respect of third-party risks in relation to a motor vehicle or trailer owned by it in all respects as if it were an insurer for the purposes of this Part.
(3) The Minister shall publish in the Gazette:
(a) the terms and conditions of; and
(b) any amendment to or revocation of;
an undertaking referred to in subsection (2).
(4) Subsection (1) shall not, while an undertaking referred to in subsection (2) is in force, apply to any motor vehicle or trailer owned by the State or a government designated in terms of subsection (2), as the case may be.
(5) A person who contravenes subsection (1) shall be guilty of an offence and liable to a fine not exceeding level six or to imprisonment for a period not exceeding twelve months or to both such fine and such imprisonment.
[Subsection amended by section 38 of Act 3 of 2000.]
(6) A court convicting a person of an offence in terms of subsection (5) may, subject to Part VIII, prohibit the person from driving for such period as such court thinks fit.
23. Requirements in respect of statutory policies of insurance
(1) A statutory policy shall be issued by a person who is approved by the Minister as an insurer for the purposes of this Part.
(2) Subject to this section, a statutory policy shall insure such persons or classes of persons as may be specified in the policy in respect of any liability which may be incurred by them in respect of:
(a) the death of, or bodily injury to, any person; and
(b) the destruction of, or damage to, any property;
caused by or arising out of the use of the motor vehicle or trailer concerned on a road.
(3) A statutory policy shall not be required to cover:
(a) any contractual liability; or
(b) liability in respect of the death of, or bodily injury to, persons who were being carried in or on or entering or getting on to or alighting from the vehicle or trailer concerned when the event out of which the claims arise occurred, to an amount exceeding:
(i) one thousand dollars (USD 1 000) in respect of any one such person killed or injured; or
(ii) five thousand dollars (USD 5 000) in respect of any one accident or series of accidents due to or arising out of the occurrence of any one such event, where the vehicle concerned is a vehicle other than an omnibus; or
(iii) ten thousand dollars (USD 10 000) in respect of any one accident or series of accidents due to or arising out of the occurrence of any one such event, where the motor vehicle concerned is an omnibus or a commuter omnibus; or
(c) liability in respect of the destruction of, or damage to, any property to an amount exceeding:
(i) two thousand dollars (USD 2 000) in respect of any one accident or series of accidents due to or arising out of the occurrence of any one event, where the vehicle concerned is a vehicle other than a passenger public service vehicle; or
(iii) two thousand dollars (USD 2 000) in respect of any one accident or series of accidents due to or arising out of the occurrence of any one event, where the motor vehicle concerned is a passenger public service vehicle; or
(d) any liability in respect of any one accident or series of accidents due to or arising out of the occurrence of any one event, to an amount exceeding:
(i) five thousand dollars (USD 5 000), where the vehicle concerned is a vehicle other than an omnibus or a commuter omnibus; or
(ii) twenty thousand dollars (USD 20 000), where the vehicle concerned is an omnibus or a commuter omnibus.
(4) Notwithstanding any other law, a person who issues a statutory policy shall be liable to indemnify the persons or classes of persons specified in the statutory policy in respect of any liability which the statutory policy purports to cover in the case of those persons or classes of persons.
[Section substituted by section 10 of Act 3 of 2000 and amended by s.i. 124 of 2009.]
23A. Minister may amend amounts specified in section 23
The Minister may, by statutory instrument, amend any amount specified in subsection (3) of section twenty-three:
Provided that no amendment increasing any such amount shall have effect in relation to any statutory policy issued before the date of commencement of the statutory instrument in which the amendment is contained, until the end of the current term of that policy.
[Section inserted by section 10 of Act 3 of 2000.]
24. Requirements in respect of statutory securities
(1) A statutory security shall:
(a) consist of an undertaking by the giver of the statutory security to make good, subject to any conditions specified therein and up to an amount approved by the Minister, any failure by the owner of the motor vehicle or trailer concerned or such other persons or classes of persons as may be specified in the statutory security duly to discharge any such liability as:
(i) is required to be covered by a statutory policy; and
(ii) may be incurred by him or them; and
(b) be approved by, and deposited with, the Minister.
(2) …
[Subsection repealed by section 11 of Act 3 of 2000.]
24A. Certificate of insurance or security
(1) A person who issues a statutory policy shall issue in respect of the policy a certificate in the prescribed form.
(2) Where a statutory security is approved and deposited in terms of paragraph (b) of section twenty-four, the Minister shall give the owner of the motor vehicle or trailer concerned a certificate in the prescribed form which contains such particulars of any conditions subject to which the security is given as may be prescribed.
[Section inserted by section 12 of Act 3 of 2000.]
25. Right of injured parties to proceed against insurers
(1) A person who has a claim against a person insured or indemnified in respect of any liability in relation to which a statutory policy has been issued shall be entitled:
(a) in his own name to recover from the insurer any amount, not exceeding the amount covered by the statutory policy, for which the person insured or indemnified is liable; and
(b) to claim and recover from a person insured or indemnified only so much of his claim as exceeds the amount recovered by him from the insurer:
Provided that:
(i) the rights of any such person who claims directly from the insurer shall, subject to subsection (2), be no greater than the rights of the insured against the insurer;
(ii) the right of recovery directly from the insurer shall become prescribed upon the expiry of a period of two years from the date on which such claim arose.
(2) Any condition in a statutory policy purporting to restrict:
(a) the insurance of the persons insured thereby; or
(b) the indemnification of the persons indemnified thereunder;
shall not, subject to subsection (3) and (4), be of any force or effect.
(3) Nothing in this section contained shall require an insurer to pay any sum in respect of the liability of any person otherwise than in or towards the discharge of such liability.
(4) Any sum paid by an insurer in or towards the discharge of any liability of a person which is covered by the statutory policy by virtue only of this section shall be recoverable by the insurer from the person.
(5) Only one action shall be instituted against an insurer in respect of the claim of one or more persons claiming damages for the death of a person on whom they were dependent and any such action shall be instituted in the name of a person agreed on between all such dependants or, failing such agreement, in the name of a person appointed by the court.
(6) An action instituted in terms of subsection (5) shall be for the benefit of all the dependants referred to in that subsection and the amount recovered from the insurer in respect of any such action shall, after the deduction of any costs not recovered from the insurer, be divided between such dependants in such proportion as the court may direct.
(7) An action instituted by a person in terms of subsection (1) against a person insured or indemnified shall, unless the court otherwise directs, be heard at the same time as any action instituted by such person against the insurer.
26. Certain conditions in statutory policies to be of no effect
If, under a statutory policy, any liability in regard to which the statutory policy was issued arises, any condition in the statutory policy purporting to restrict such liability in any way and for any reason whatsoever shall not, in connection with any claim referred to in section twenty-three, be of any force or effect:
Provided that nothing in this section contained shall be construed so as to render void any provision in a statutory policy requiring the person insured or indemnified to repay to the insurer any sums which:
(a) the insurer may have become liable to pay under the statutory policy; and
(b) have been applied to the satisfaction of claims of third parties.
27. Insurance discs for certain motor vehicles and trailers
(1) Whenever a statutory policy is issued or renewed in respect of a motor vehicle or trailer which the insured states is not required to be:
(a) registered in terms of Part III; or
(b) licensed in terms of Part IV;
of the Vehicle Registration and Licensing Act [Chapter 13:14], the insurer shall issue to the insured a disc on the prescribed form on which shall be specified such details as may be prescribed.
(2) A person shall not use on a road during the period of validity of a statutory policy referred to in subsection (1) a motor vehicle or trailer in respect of which a disc has been issued in terms of that subsection unless the disc is affixed to such motor vehicle or trailer in a conspicuous place.
(3) An insurer shall not cancel a statutory policy referred to in subsection (1) or amend such a statutory policy by the substitution of another motor vehicle or trailer to which such statutory policy relates unless and until the disc concerned is returned to him.
(4) If, during the period of validity of a statutory policy referred to in subsection (1), the motor vehicle or trailer to which the statutory policy relates is sold, broken up, destroyed, sent permanently out of Zimbabwe or removed permanently from the roads, the insured shall forthwith transmit the disc concerned to the insurer.
(5) A person who contravenes subsection (2) shall be guilty of an offence and liable to a fine not exceeding level four or to imprisonment for a period not exceeding three months or to both such fine and such imprisonment.
[Subsection amended by section 4 of Act 22 of 2001.]
28. Exemption from compliance of section 27
Notwithstanding anything contained in section twenty-seven, the Minister may, by statutory instrument:
(a) exempt, subject to such conditions as he thinks fit to impose:
(i) an insurer, in relation to an insured which is a local authority specified in such notice; and
(ii) the insured referred to in subparagraph (i);
from compliance with the provisions of that section; and
(b) amend or withdraw an exemption referred to in paragraph (a).
29. Offences in relation to statutory policies
A person who:
(a) for the purpose of obtaining a statutory policy, knowingly makes any false statement; or
(b) wilfully does any act which disentitles him to claim under a statutory policy;
shall be guilty of an offence and liable to a fine not exceeding level six or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment.
[Section amended by section 4 of Act 22 of 2001.]