The Minister of Transport and Civil Aviation, Mohamed Ameen, has revealed that the Government is working with local insurance providers to introduce a new comprehensive motor vehicle insurance package to cover vehicle damage and loss.

The move comes amid increasing public criticism of the current mandatory insurance scheme, which many feel offers limited coverage. At present, the law only mandates third-party insurance, which protects against legal and financial liability if a vehicle causes harm to another person or their property.

Minister Ameen, speaking during a programme aired on State media, said the proposed package is aimed at bridging this gap. He noted that the current mandatory third-party liability insurance only covers legal and financial responsibilities arising when a vehicle causes injury or damage to others.

As part of broader efforts to overhaul the transport regulatory framework, the Government is in the process of drafting amendments to the transportation law. Nonetheless, the Minister stated that progress can be made before these amendments are formally passed.

In line with this effort, the Transport Ministry, in collaboration with local insurance companies, is aiming to roll out the new insurance option within the next 45 days to two months. This package would supplement the existing third-party insurance requirement and offer broader coverage for vehicle-related losses.

The Minister added that the planned legislative reforms, once enacted, would significantly contribute to addressing several of the country’s traffic management issues.