THE Insurance Council for Zimbabwe (ICZ) was inundated with widespread complaints from the public over lack of transparency by insurers.
This was highlighted at the recently held Zimbabwe International Trade Fair (ZITF).
The ICZ said the erosion of insurance values in 2009 featured in the discussions. Concerns were also raised over unpaid claims and lost premiums on discontinued products, particularly for the pension and life assurance sectors.
It pointed out that in addition to the legacy issues, short-term insurers were accused of not honouring their promise to pay claims.
Most policyholders, the ICZ noted, did not know of the benefits accruing to the policies they had bought.
“This was the case for third party motor insurance policyholders who were of the perception that the policy was a motor licencing requirement with no form of compensation,” the ICZ said.
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“While the ICZ staff made efforts to explain such benefits, there was a need to make the exercise a national educational and awareness campaign.”
It noted that insurers were castigated for raising matters at the claims stage, resulting in repudiation or partial payment of claims.
Some policyholders, the ICZ revealed, bemoaned the failure by insurers to provide adequate information through its digital platforms.
“One client who requested for anonymity, mentioned that he has lost his vehicle following the repudiation of his claim issued by one insurer online,” the ICZ said.
“The insurer declined to honour the claim based on some exclusion clause that the policyholder claimed to have not been notified of at the retail point.”
Lack of transparency has over the years eroded public trust in the insurance sector. — Staff Writer.