The Common Market for Eastern and Southern Africa (Comesa) and the Insurance Association of Malawi (IAM) have launched a digital verification platform for the blocks Yellow Card motor insurance scheme.
The Comesa Yellow Card provides coverage for third-party bodily injury, death and property dam4age caused by road accidents involving foreign-registered vehicles.
The USSD-powered system, accessible through code *384*10# on Airtel, allows law enforcement officers and customs officials to verify third-party insurance coverage in real time.
During the launch of the platform, IAM President Dorothy Chapeyama said the platform will enhance efficiency and transparency in the regional insurance scheme that facilitates cross-border travel.
“This system will improve the efficiency and transparency of the Yellow Card Scheme by streamlining stock monitoring, card issuance and claims processing,” Chapeyama said.
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Eight general insurance companies under the National Bureau of Malawi administer the Yellow Card locally.
Council of Bureaux Secretariat Chief Executive Officer Calven Mutyavaviri said the scheme operates in 11 COMESA countries, with more than 250 insurance companies participating across the region.
He disclosed that 256,649 Yellow Cards were issued in the 2021/22 financial year, collecting over $14.7 million in premiums.
More than 720 claims were settled during the same period, including one valued at $400,000 from a truck fire incident in DR Congo.
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Malawi Police Service Deputy Commissioner for Road Traffic Alexander Moyo said the digital platform will streamline enforcement and reduce fraud.
“Officers can now easily verify insurance status, reducing fraud and boosting compliance,” Moyo said.
Director of Trade in Goods at the Ministry of Trade and Industry Charity Musonzo said the platform supports trade facilitation efforts.
“The introduction of USSD-based verification is a step forward in simplifying cross-border trade and the movement of people with their vehicles,” Musonzo said.
The Yellow Card scheme was established under a protocol signed on December 4, 1986, in Addis Ababa by 14 Heads of State and Government, with operations beginning on July 1, 1987.
Motorists from non-COMESA states such as Mozambique can access the insurance cover through a Business-to- Business agreement with Malawi.
The Insurance Association, in partnership with the Malawi Police, is training border officials on using the USSD system for insurance verification.
