Tawanda Musarurwa
CHECKPOINT DESK
EVERY registered funeral assurer in Zimbabwe is now paying out on policies capped at a maximum sum insured of US$6 000 — according to the industry regulator — but the burden to prove it rests with policyholders.
Responding to written questions, the Insurance and Pensions Commission (IPEC) confirmed that the US$6 000 ceiling imposed on funeral policies in 2023 is now being observed across the board.
“The cap of US$6 000 applies to all risks arising within the jurisdiction of Zimbabwe and all registered funeral underwriters are expected to comply.
“All registered funeral underwriters are compliant,” said Mrs Sibongile Siwela, IPEC’s director of insurance supervision.
Policies exceeding US$6 000, or the local-currency equivalent, are deemed fully paid-up at that threshold.
According to IPEC, a local funeral policy can have a maximum sum assured of US$6 000 (or the ZiG equivalent at the prevailing interbank rate) for each insured person; that is, the most a policy can be set up to cover per person.
In a family policy, that limit applies to every member, so a policy covering four or five people can, in principle, carry the maximum sum assured for each one.
The actual sum assured depends on what the policyholder chooses to cover, such as a coffin or casket, hearse, bus, tent and toilets, so it differs from one policyholder to another.
An industry insider, who spoke anonymously, said on average a funeral policy covering casket, hearse and bus has an average sum assured of US$2 500 per person.
Policies issued outside Zimbabwe have higher limits: US$10 000 within the region and US$25 000 internationally.
Asked how policyholders can confirm their own cover complies, Mrs Siwela said the onus falls on clients themselves.
“Policyholders are encouraged to check their policy documents to satisfy themselves that their sum assured does not exceed US$6 000 or equivalent,” she said.
Policyholders can also query their insurer or the Commission directly, she added.
The industry’s own representative body has echoed that call for consumers to do their own homework.
