Strip LNIC of monopoly, says consumer group


Caswell Tlali

MASERU — A local consumer rights organisation wants the government to strip the Lesotho National Insurance Company (LNIC) of its 23-year-old monopoly of managing the Road Traffic Accident Fund. The Consumer Protection Association (CPA) suggests that the government should establish its own “Road Accident Fund rather than giving a private company the monopoly to operate the fund”. The LNIC is supposed to pay third-party insurance to road accident victims. Potential beneficiaries of this compensation are passengers and people knocked down by vehicles.
Other potential beneficiaries include people injured in accidents in which the driver is at fault. The maximum claim for road accident victims is M12 000. The money to pay victims comes from a tax levied on fuel sales in Lesotho.

The government has appointed LNIC as the fund operators. But the CPA says the government should establish its own fund rather than relying on the one managed by the LNIC.
“The fund will put compensation of complainants at the centre of its business rather than profit maximisation,” says the CPA in a proposal document it has been using to mobilise stakeholders to support its case against the LNIC’s monopoly. CPA director, Lehlohonolo Chefa (below), told the Sunday Express that the association also wants the insurance company to account for every cent it has received from the government in the past 23 years. “We would like to see an audit of how many people have been compensated by the company since 1989 and the profit margins of the company as well as the cost of paying expensive lawyers in order to protect its profit maximising motive,” Chefa said.

“We feel justified to seek a rethinking more so when LNIC is using the resources which it accumulates with minimal effort as the Central Bank is collecting the levies on its behalf”.
The CPA says it has found that even those who have successfully claimed compensation do not get paid. It complains that the LNIC demands that claimants subject themselves to expensive medical examinations. The problem, the association says, is that after paying huge fees for the medical examinations the victims can only get a maximum M12 000.
Sometimes claimants have to engage the services of expensive lawyers or third-party claim experts to push their claims. “There is a possibility of a lot of money being lost in legal fees or claimants being cheated by either their lawyers or the insurer,” the CPA said in its proposal. The LNIC also wants to establish if the driver was at fault before it compensates the victims. Investigating accidents for purpose of claiming compensation from the insurer is sometimes so expensive that most victims opt to drop their claims.

Lawyers that try to represent poor claimants can find themselves in trouble. Take the case of local lawyer, ’Mathabo McCloy, for example. Four years ago McCloy tried to fight for dozens of accident victims after the LNIC refused to pay them but she got her fingers burnt. When LNIC refused to pay McCloy’s clients sued her for damages. Interestingly her clients were represented by Webber Newdigate, the same firm that LNIC had used to block McCloy’s clients from getting compensated. She lost the case and the High Court sheriff attached her property.
LNIC had declined to pay her clients saying their claims had delayed while McCloy’s clients complained that the insurer had sat on the claims until they expired. LNIC had said whoever was dissatisfied could go to courts.

McCloy had argued that her clients were too poor to challenge the LNIC in court. Her attempts to get government to intervene in the dispute failed. The Directorate on Corruption and Economic Offences (DCEO) declined to investigate the matter on the basis that it did not fall within its scope of work. McCloy had told the DCEO in her 2007 letter that she suspected that the Motor Vehicle Insurance Order of 1989 was being misused to benefit the LNIC. “We have reason to believe that the administration of this order is practised in the most corrupt and unfair manner which warrants your intervention to avoid more suffering to those it affects,” McCloy said in the letter. McCloy said the LNIC wrongfully declined to pay or settle 250 claims of her clients “under the cover of a legal technicality”.
She claimed that the LNIC received all the necessary information on time but “deliberately withheld settlement till prescription date”. McCloy wanted the DCEO to investigate allegations that Webber Newdigate was helping LNIC to avoid paying compensation to third-party motor vehicle accident victims. She requested an audit of amounts the insurance company had paid Webber Newdigate. “What were they paid for? Could it be for having saved LNIC money?” McCloy wrote. “We see no reason why only Webber and LNIC should benefit from the fund in cases where they have not performed their duty as expected or as prescribed by the relevant law, while the injured persons get no compensation at all.”

McCloy complained that LNIC left the claims to expire and alleged that summons should have been issued earlier before the expiry date as prescribed by the law. “This is most unreasonable since this law was passed to make settlement of claims easier without having to resort to courts unless it is necessary,” she said. “It is most unfair bearing in mind the fact that going to court requires money. “Most claimants cannot afford this expense while LNIC have a huge fund at their disposal from which their legal representatives are paid for every step they take, every letter they write and every court appearance. “In this circumstance why can’t victims of motor vehicle accidents draw from the same fund to defend? “How else can they afford to go to court?” McCloy said in some cases summons were issued to stay claims’ expiry dates but victims could not afford to pay further fees to continue their cases, Webber Newdigate sued them for cost of suit.

“If your investigations should reveal that LNIC and Webber have been acting properly, fairly, justly, in good faith and in compliance with the law and with the best interests of motor vehicle victims, then it would mean the law itself is not just,” McCloy added. The audit was never done. LNIC officials could not be reached for a comment at the time of going to print.


About Author


  1. When you what is the best diet pills to lose weight get a craving
    for you. They require you to stay fit and active. Losing weight and how many you burn off more quickly
    than today’s what is the best diet pills to lose weight recommended rate or we will get your heart healthy unsaturated fat.
    Scan reviews and do the same. In keeping with day. Both of those
    calories and lose weight.

  2. Statement of truth- Kilojoules- restriction diets rarely help the dieter achieve a healthy and to top over the counter diet pills work.
    The first of the most beneficial weight loss diet
    often works, guests from Mountain Trek alumni have achieved the weight
    back, almost automatically. As with all the extra exercise whenever you have stopped seeing quick weight loss.
    Your breakfast should consist of highly nutritional shakes.

  3. Many factors for this growth are the large aging population along
    with the increase in technology. * Provides BU consulting services in areas of expertise.
    The lower range showed a median salary of $268,000.

    My page nuclear medicine technologist jobs in texas (

  4. Many factors for this growth are the large aging population along with
    the increase in technology. This article has been flagged as spam,
    if you think this is an error please contact us.
    The lower range showed a median salary of $268,000.

    My web blog … mammography continuing education home study (Belinda)

  5. Love addicts tend to use sex to manage their feelings or to control their partner ‘ the co-addict.
    Online dating is allowed to be enjoyable so make
    it fun. The official statement from a spokesperson for the London PD said “We investigated reports of an alleged forced imprisonment and common assault made by a 28-year-old man.

  6. If you are struggling with a respiratory infection, or suffer from asthma
    or emphysema, you may see a respiratory therapist.
    By incorporating some of the following tips into your approach, you can be satisfied that
    you made an great impression and spurred some of
    todays youth into the healthcare careers of tomorrow.
    You’ll be earning a higher auto mechanic salary after 24 months and your knowledge will be higher than what you would
    just learn on the job.

    My website mri technician job salary (

  7. If you are struggling with a respiratory infection, or suffer from asthma or emphysema, you may
    see a respiratory therapist. * Provides BU consulting services in areas of
    expertise. * Discuss needs with customers in a non-technical

    My website … ultrasound tech degree, Earle,

  8. This is really fascinating, You are an excessively
    skilled blogger. I’ve joined your feed and look ahead to in the hunt for extra of your fantastic
    post. Additionally, I’ve shared your site in my social networks

  9. Thanks for ones marvelous posting! I truly enjoyed reading it, you will be a great author.
    I will remember to bookmark your blog and will often come back
    later on. I want to encourage you continue your great work, have a nice

  10. Much like team sports, having a small basketball court set up at your home encourages social interaction outside of school as well.
    If you have a player that is more of a role player then have them set multiple screens in a possession and try to force
    switches or help situations that will lead to open shots for other players.
    This is a question that scientists have sought to answer for quite some time.

  11. magnificent points altogether, you just gained a logo new reader.
    What could you suggest about your publish that you simply made some days ago?
    Any positive?

  12. 3rd Understand the field of plastic surgery hospitals, aas a service.
    Of all, make sure that you arre a good candidate for the kibd of plastic surgical
    treatment that you aree interested in. Here
    are some basic questions we suggest when searching for low cost
    plastic surgery.

  13. My brother suggested I might like this website.
    He was once entirely right. This submit truly made my day.
    You cann’t believe just how so much time I had spent for this information! Thanks!

  14. (2000): Essentials of Marketing Research: London, Financial Times-Prentice Hall.
    Another technique players have used is to bet on numbers that
    haven’t yet appeared, thinking they may be likely to appear soon while
    they haven’t come up yet. Drug – Bound: In this endless runner players
    make an effort to score all the pot while they can while running through the desert.

  15. whoah this weblog is great i like reading your posts.
    Keep up the good work! You understand, lots of people are hunting round
    for this info, you could help them greatly.

  16. Action Movies are admired by younger generation where they are dazzled to watch
    wonderful fights and awesome actions. There are
    so many things that are placed in the codes that sometimes,
    they are embedded with a formula that can access some of your
    personal information. ‘Clean Code: A Handbook of Agile Software Craftsmanship’ follow close on the heels by broadcasting the rules you need to create programs with
    clean codes.

  17. whoah this blog is excellent i like reading your articles.
    Keep up the great work! You realize, many persons are looking around for this information,
    you could help them greatly.

  18. I love your blog.. very nice colors & theme. Did you make this website yourself or did you hire someone to do it for you?
    Plz reply as I’m looking to construct my own blog and would like to know
    where u got this from. thanks a lot

  19. Poll Ads have been in plain english ideal for getting direct feedback through
    your fans. Kontera offer intext contextual link ads that may be seen through the articles
    on A1 Articles. 53% of individuals adhere to a business versus 32% who consume a celebrity; 100M page ‘likes’ happen every day.

  20. ????1????????????????????????







  21. I’m not sure where you are getting your info, but good topic.

    I needs to spend some time learning much more or understanding
    more. Thanks for fantastic information I was looking for this information for
    my mission.

  22. You really make it seem so easy with your presentation but I find this topic to be actually something that I think I would
    never understand. It seems too complex and extremely broad for me.
    I’m looking forward for your next post, I will try
    to get the hang of it!

  23. This is now being sold online with a totally free membership into an on the web fitness software,
    which will permit you to get results.

  24. A motivating discussion is worth comment.

    I do think that you need to publish more about this subject,
    it might not be a taboo subject but generally people don’t speak about such issues.
    To the next! Best wishes!!

  25. ??????,,??????,,