Photo: Hansueli Krapf, Wikimedia Commons, CC BY-SA 3.0Car insurance in Malawi
What the Road Traffic Act requires
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What the law requires
| Section of the Road Traffic Act | Rule |
|---|---|
| 141(1) | No one may use, or let anyone use, a motor vehicle on a public road without a policy of insurance (or a security) against third party risks. |
| 141(2)–(3) | Offence: a fine of up to K10,000 or up to two years' imprisonment, or both, and disqualification from driving for at least 6 months (first offence), 1 year (second) or 5 years (third and later). |
| 143 | The policy is issued by an insurer approved by the Director and covers liability for the death of or bodily injury to any person, and for damage to property, caused by the use of the vehicle on a public road. |
| 144 | The policy need not cover: the insured's own employees injured at work; passengers, unless they are carried for hire or reward or under a contract of employment; amounts above the prescribed amount or the policy limits; damage to the insured's own property or to roads and bridges; contractual liability. |
| 148 | An injured person may claim directly from the insurer, up to the amount covered, within two years of the cause of action. |
| 150 | When the insurer pays for a death or injury treated in hospital, it also pays the hospital's expenses up to a prescribed amount. |
| 151 | The insurer issues a certificate of insurance for each vehicle and trailer; it must be in the vehicle at all times on a public road and may be inspected by a police officer. |
Text: Part XIV of the Road Traffic Act, MalawiLII consolidated version of 31 December 2014 (the amounts in kwacha are those of that version).
The motor covers insurers are licensed to sell
The Registrar's Classes of Insurance Business Directive, 2017 divides motor insurance into motor — private and motor — commercial, each with four sub-classes: comprehensive, third party fire and theft, third party, and Act cover (the minimum the Road Traffic Act requires). Motor traders' cover and motor contingent cover are separate classes.
How the premium is set
Malawi has no published tariff of motor premiums. Since February 2025 the Registrar's Guideline on pricing of motor insurance products requires each insurer to price from a scientific rating model that takes into account the vehicle type, age, usage, location and mileage, the claims history and the driving record (paragraph 3.2), and to cover the cost of claims, reinsurance, commission, levies and taxes, management expenses and profit (3.3).
Each insurer files a board-approved rating guide with minimum recommended rates with the Registrar at the start of every year, and its chief executive must report on request every policy rated below those minimums (paragraphs 4.1–4.3). The guideline explains why: insurers had been charging "arbitrary rates" that could not fund claims.
Who can sell you motor insurance
The general insurers on the Registrar's list of 30 June 2026: Britam Insurance Company Malawi Limited, Co-operatives General Insurance Limited, General Alliance Insurance Limited, Libertas General Insurance Company Limited, NICO General Insurance Company Limited, Prime Insurance Company Limited, Reunion Insurance Company Limited and United General Insurance Company Limited. Brokers, agents and the bancassurance agents of five banks are on the same list. More: licensed insurance companies · check an insurer, agent or broker.
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Frequently asked questions
Is car insurance compulsory in Malawi?
Yes. Section 141 of the Road Traffic Act forbids using a motor vehicle on a public road without a policy of insurance (or a security) against third party risks.
What is the fine for driving without insurance in Malawi?
In the consolidated Road Traffic Act (version of 31 December 2014), a fine of up to K10,000 or up to two years' imprisonment, or both, plus disqualification from driving for at least six months for a first offence (section 141).
Does third party insurance cover my passengers?
Not necessarily. The Act does not require the policy to cover passengers unless they are carried for hire or reward or under a contract of employment (section 144(b)). Read the policy, or add passenger cover.
Can an injured person claim directly from my insurer?
Yes, up to the amount covered, within two years from the date the cause of action arose (Road Traffic Act, section 148).
Sources
- Road Traffic Act, Cap. 69:01 (in force 15 January 1998), Part XIV: compulsory third party insurance — MalawiLII consolidated text, Web Archive copy
- Insurance (Classes of Insurance Business) Directive, 2017 — Government Notice No. 43, Gazette of 11 August 2017
- Registrar of Financial Institutions — Guideline on pricing of motor insurance products by insurers (February 2025)
- Registrar of Financial Institutions — Press release: list of licensed, registered and supervised financial institutions as at 30 June 2026 (published 28 October 2026)