Johannesburg - Alexander Forbes Insurance (AFI) is demanding compulsory third-party damage insurance for ALL vehicles using South African roads... and it could cost R50 a month.Currently, according to the AA, a whopping 65% of vehicles sharing the tar with you have NO INSURANCE AT ALL! If a wreck of a taxi hits your family car, the chances of the damage being paid for are pretty much ZERO - and that means you, the insured car-owner, will have to cough up for repairs for something that is no fault of your own.AFI managing director, Gari Dombo, says a reduction in motor insurance premiums is possible as more vehicles will be covered with a bigger pool of contributors. As a result, vehicle insurance will become more affordable in South Africa. LESS THAN 35% OF SA VEHICLES INSUREDDombo says this will also result in an increase in the number of roadworthy vehicles on South Africa’s roads as more funds become available for Third Party vehicle damage repairs.Motor industry experts also say that South Africa is one of the few countries in the Southern African Development Community that does not enforce compulsory comprehensive insurance on motor vehicle owners.Gary Ronald, head of public affairs at the AA, “The hindrance for compulsory third party in South Africa is affordability with regards to insurance plans as we would first need to accumulate a fund to pay out third party claims, a fund which at this stage does not exist. “There then begs the question of where this fund would originate, from the government or from commercial industry bodies.” “If all drivers were to pay a compulsory fee of say R50 per month, of the 960 000 crashes we have per year, the fund would be bankrupt before we began, hence the need for seed capital to the fund to make third party payouts viable.” FUND NEEDED TO PAY CLAIMSAlthough the government has discussed introducing mandatory third party insurance, there is still much debate around the best way to collect payments. Options being considered are the introduction of a fuel price levy, annual premiums when renewing ones vehicle licence, and/or an arrangement when you purchase your vehicle. Countries such as the United Kingdom, United Arab Emirates and Italy have successfully implemented third party insurance. Dombo said: “Knowing that South African roads are safer will provide road users with greater peace of mind and ensure that the insurance industry as a whole remains sustainable.” Wheels24's LES STEPHENSON WRITES "SA used to have compulsory third-party insurance but it was discontinued and some sources believe as many as half of the vehicles on SA's roads are totally uninsured. So if a skidonk clobbers your new BMW, it's your problem..." Email us and we'll publish your thoughts on Wheels24.