28 Nov 2007

Samoa Rental Car Association set to lose millions

8:49 am on 28 November 2007


The Samoa Rental Car Association says it's set to lose millions on it's investments of a new car fleet, once it switches to driving on the left-hand side of the road.

Cabinet approved the controversial switch this month, and it's expected to be implemented in July next year.

The president of the Rental Car Association, Roy Lee, says last year the government encouraged the Rental Car industry to upgrade it's fleet in time for this years South Pacific Games.

He says the industry took the government's suggestions on board.

But Mr Lee says if the switch goes through, they will be hit hard by insurance companies, leaving their vehicles worthless.

"The insurance company here has said that, because of the increased risk, the insurance policy and premiums will go up by 50%. I doubt it very much that the tourist insurance when they do arrive here - as you can appreciate they have their own travel insurance - will accept that knowing the fact that we've given them the wrong vehicle that drives on the wrong side of the road.

The president of the Rental Car Association, Roy Lee.