Exploring the Introduction of Compulsory Third Party Motor Vehicle Insurance with Property/Vehicle Damage Coverage in Botswana

05 Aug, 2025

In an effort to improve road safety and strengthen consumer protection, the Botswana Short-Term Insurance Underwriters Association (BSTIUA), in collaboration with Business Botswana, convened a high-level roundtable in Gaborone to discuss the introduction of mandatory third-party motor vehicle insurance.

Held at the Maharaja Conference Centre, the event brought together legal experts, insurance professionals, and policymakers to examine how Botswana can modernise its motor insurance framework. The aim is to ensure that all road users are financially protected in the event of an accident, something that the current system does not fully guarantee.

Currently, motor vehicle insurance in Botswana is not compulsory. As a result, many victims of road accidents do not receive compensation, especially in cases where the at-fault driver is uninsured or unable to pay. The proposed reform would make third-party insurance mandatory, bringing Botswana in line with international standards already adopted in countries across Africa and beyond.

Speakers at the roundtable noted that similar systems have led to improved road safety, greater financial security for citizens, and growth in national insurance sectors.

Participants agreed that introducing the policy would require updating and harmonising several pieces of legislation, including the Global Traffic Act, Motor Vehicle Finance Act, and the Insurance Industry Act. The lack of alignment among these laws has been identified as a key obstacle to progress.

Legal expert Jayne Cross from Michin & Kelly Associates highlighted the importance of legal clarity and improved public confidence. “For this to work, people must trust the system. That starts with clear rules and effective communication,” she said.

The discussion also addressed concerns around affordability. A tiered pricing model was proposed, where insurance premiums would vary depending on vehicle type and usage. Stakeholders agreed that this approach would be more inclusive and fairer to low-income vehicle owners.

However, some panellists raised questions about whether insurers currently have the data and infrastructure needed to implement such models transparently. A key question raised during the session was whether the Ministry of Transport and  Public Works has the legal authority to initiate the reform and take it to Parliament. Clarifying this will be crucial in moving forward with the policy.

Closing the session, Mr. Batsile Nwako, Chairperson of the Transport Sector at Business Botswana, made a compelling case for action. “This is not just about policy reform, it’s about social justice. Every person on the road deserves protection, no matter their income or the circumstances of an accident,” he said.

Mr. Nwako also pointed out the broader economic benefits of the policy, including job creation, sector growth, and new product development in the insurance industry. He ended with a strong call to action: “We’ve discussed this long enough. Now is the time to act. Government, business, and civil society must come together and make this a reality.”