Insurance firms gross US$340m

to cover claims last year, the Insurance and Pension Commission has said.
IPEC, a body governing the operations of insurance and pensions industry in Zimbabwe, said this in response to questions from Herald Business over allegations of profiteering and unscrupulous dealing by some insurance companies.
According to IPEC as of 2010 Zimbabwe had nine companies registered under life assurance, life reassurance (two), short-term insurance (11) and short- term reinsurers (27).
“We don’t have a data base. We largely operate at policy level rather than administrative. The gross premium written in the life sector is US$148 324 064, funeral — US$33 484 651 and non-life U$158 968 667,” IPEC prudential manager Mr Munyaradzi Machinjika said.
He said at least US$46 094 810, US$3 970 591 — funeral and US$80 749 000 for non-life.
Mr Machinjika said although the commission had no database to give a specific number of insurance claims denied most claims were dismissed for various reasons.
“We have no database. Reasons generally include non-payment of premiums, claim falling outside policy terms and conditions. For example, loss due to political causes, suicide, etc,” he said.
Mr Machinjika could also not give the number of claims rejected saying the commission had no database.
“However, we sometimes act as arbitrator for policyholders and industry players in terms of the Insurance Act Chapter and Pensions and Provident Fund,” he said.
The commission also said it had noted a decline in claims due to improved medication accessibility especially in view of the Aids pandemic and generally improved deployment of risk management by industry players.
Although IPEC could not disclose the number of insurance firms penalised for breaching the Insurance Act it said they had fined firms up to US$5 000 for an offence and deregistered some players.