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Raymond Jaravaza
“THE insurance company made it clear that it will not pay for the losses that my business incurred as a result of the violent protests, where my pub was destroyed and alcohol looted last month,” a Bulawayo businessman, Reginald Mnkandla, told this publication.
What started off as a conversation on how Mnkandla was slowly re-building his business after an inferno gutted down a building that housed a pub he owned in Magwegwe suburb, soon turned to the subject of insurance cover.
“The general notion out there is that insurance companies will cover our losses so we will be back on our feet in no time but that is not the case. My insurance company (name withheld) turned down my claim and stated that it does not cover losses caused by political violence,” he said.
Last month the country was gripped by violent protests that resulted in the looting of goods and destruction of property worth millions of dollars.
To verify businessman Mnkandla’s claims that insurance companies do not cover losses incurred as a result of politically motivated protests, this reporter sought the opinion of the Insurance Council of Zimbabwe (ICZ).
ICZ’s role is to protect, promote and advance the common interest of all classes of insurance business in the country.
“Riots (or politically-motivated protests) are not covered largely because they have a number of attributes that are not associated with insurable risks. Generally political risk is not covered in Zimbabwe.
“In that regard it becomes generally difficult to provide estimates (of insurance claims) from an insurance point of view as some of the losses may not be insured considering that they are a result of perceived political risk for which there is no cover,” said ICZ marketing and public relations consultant Ringisayi Batiya.
Batiya dispelled the notion that all businesses that are insured would be compensated for lost goods and property destroyed during the violent protests.
“There is this misconception that if one has an insurance policy then that policy covers everything. Policyholders are encouraged to take note of the terms and conditions of their policies.
“There is, however, what is known as political risk cover, which is not a very popular insurance policy with the generality of the insuring public in Zimbabwe. Political risk cover is popular with multinational insurance companies and non-governmental organisations. Anyone interested in this type of policy makes a specific request and cover is provided on specific request,” she said.
According to a journal published by the ICZ last year, most businesses in the country are covered under short-term insurance cover.
Short term insurance covers can be conveniently grouped into four classes namely, liability, property damage, financial loss and fixed benefits.
derick.khumalo