RATSA deputy director Martin Mbango says the proposal has since been submitted to government and that they are awaiting response.
This follows the tragic road traffic accident in which over 50 people died when a Post Bus collided with truck in Chibombo area in Central Province.
Mbango said the third party insurance for long distance passenger buses was inadequate to attend to the needs of passengers in the case of road accidents.
He said currently, the minimum insurance paid is between K30 million and K60 million which is not adequate to cover the costs associated with an accident involving many passengers.
Mbango said the fund will take care of passengers involved in a road traffic accident especially those admitted to hospitals until they are discharged.
“So this money is not adequate. Imagine a bus carrying 60 people is involved in accident, each passenger will require K1 million which is very little. The introduction of this fund will take care of all the requirements starting from the time that the accident happened even before that,” he said.