Amendments to the Road Traffic Act came into effect on New Year’s Day.  It is now required that car owners insure their cars for at least six months.

J. S. Johnson Insurance Senior Manager, Charles Johnson spoke with ZNS News about the new requirements.  He said, “the Road Traffic Department in their effort to reduce the number of uninsured vehicles on the streets have amended the Act and there are several amendments.  But one of which I think is going to effect the insuring public is the fact that they have to an insurance policy for a minimum period of six months.  Most policies are issued for a year but there was that flexibility is an individual wanted to take a shorter period some companies would have allowed that.  But now, your policy is not considered an insurance policy unless it is actually issued for a period of six months or more.”

The new requirement effects new and existing insurance policies.  Johnson said, “Someone renewing their policy as of today would have to renew their policy for at least six months.  If its a new policy, again, it has to be issued for at least six months.  Now that is not uncommon because most policies are issued for a full year but sometimes an individual may want their insurance expiration date to coincide with a particular period that may be less than six months but in this instance it has to be issued for six months or more.”

The J.S. Johnson Senior Manager advised policy holders to speak with their insurers.  He said, “one of the implications of issuing a minimum period of six months is that the insurance companies are on the hook for six months premium at best.  Therefore in offering any type of premium financing or part payments I would gather that most companies would wish to collect at least 50% of the annual premium or at least six months premium.  So persons who may wish to pay for a period less than six months maybe hard pressed to find those types of terms.

The amendments to the Road Traffic Act were passed in Parliament in 2024.