Decree on insurance of public vehicles is null and void- Finance Minister

Finance Minister Mohamed Adan Fargetti has warned Banaadir administration against compelling public transport vehicles to take up insurance from a private insurance company in Mogadishu.

Fargetti said there were no laws in the country requiring vehicle owners to insure their vehicle with private companies adding the existing laws solely granted the Finance Minister authority to issue directions regarding any insurance matters.

“On behalf of the Ministry Finance, I would like to make it clear there are no laws allowing private companies right to issue insurance to public vehicles. Further, the Ministry of Finance is the only authority which can issue any guidelines regarding insurance in the country,” said Fargetti.

The minister however called on Parliament to develop necessary laws to make clear the issue of insurance of public vehicles in the country.

His remarks follow similar concerns raised by the Attorney General Osman Elmi Guled and Auditor General Nuur Farah Jima’ale both of whom questioned the legality of the Banaadir administration directions.

The Department of Transport in Banaadir region last week ordered all public service vehicles to register their vehicle for insurance with Takaful Insurance company causing uproar among drivers and owners of public vehicles.

Public transport vehicles were required to pay $300 for annual insurance. Takaful is the only insurance company in Mogadishu.

The administration has since withdrawn the order.