adminMichael Magoronga Midlands Correspondent
The Insurance and Pensions Commission (IPEC) has warned the public against buying insurance policies from unregistered firms.
IPEC is the regulator for the insurance and pensions industry in Zimbabwe.
In an interview, IPEC public relations manager Mr Lloyd Gumb, urged prospective policy holders to be wary of bogus firms when buying insurance policies.
He warned motorists against buying insurance policies from touts who usually mill around Zimpost and Zimbabwe National Road Administration (zinara) offices.
Mr Gumbo said his office had been inundated with reports of people who had bought insurance policies from unregistered entities, especially funeral assurance companies, legal aid schemes and touts.
“We have had complaints from people who bought policies from unregistered entities offering funeral assurance and legal aid policies,” he said.
“Often, we get these complaints when policyholders have failed to locate these bogus entities at the time of submitting claims. In terms of the law, insurance companies, including those into funeral assurance and legal aid business, must be registered with IPEC.
“Prospective policyholders should therefore first inquire whether the entity is registered with IPEC and if they are in doubt, they should ask for proof of the registration certificates, inquire with us or check on our website where we have a list of all registered entities.”
Mr Gumbo said prospective policyholders should only buy insurance policies from companies with genuine physical addresses so that they can easily locate them when they intend to make claims.
He said given that IPEC had a database of all registered insurance companies and their addresses and contact details, it makes it easy for them to engage the entities whenever they receive a complaint from policyholders.
Mr Gumbo said IPEC partnered with law enforcement agents in a bid to flush out bogus funeral assurance companies, legal aid schemes and touts.
“We have some cases that are before the courts where these unregistered insurance companies and touts who sell policies by the roadside are being prosecuted,” he said.
Insurance underwriters regulated by IPEC are required to undergo actuarial valuations, maintain sufficient reserves to enable them to fulfil their obligations, put in place sound and sustainable pricing practices, adhere to good corporate governance and treat their customers fairly through enhanced public disclosure.
Online Reporter