The Ethiopian Insurance Fund Office aims to increase its third party insurance collections to 30.8 million birr in the new financial year as well as taking over some of the tasks that it had outsourced to the Ethiopian Insurance Corporation.
The IFO also expects to increase access by building five branch offices in regional towns during the current fiscal year explained Bayleyegn Bekele, Public Relations Head at the fund.
The board’s plans were approved by its board earlier this month 600 thousand certificates and stickers have already been ordered from Kenya for the current year said Bayleyegn. The stickers and certificates will be distributed to insurance companies.
The IFO plans to collect 30.8 million birr for the current financial year increasing upon the year’s plan by 2.8 million birr. The office was able to collect around 24 million birr from the 10% cut of premiums collected by insurance companies said the end of year report.The money was collected from the 304,401 vehicles that had been registered for third party insurance up to May 2012 explained the report. 75.5% of the total number of vehicles in the country have been registered for the insurance in the last financial year.
The fund was able to set its projected income for this year by taking into consideration the premiums that vehicles already registered will pay as well as new vehicles entering into the country during this financial year said Bayleyegn.
