IPEC warns on deceiving unsuspecting potential insurance consumers

IPEC warns on deceiving unsuspecting potential insurance consumers

HARARE, The Insurance and Pension Commission say it frowns upon insurance companies or insurance agents/brokers who deceive unsuspecting potential insurance consumers all in the name of making money at the expense of policyholders.

Ipec Commissioner Tendai Karonga said it is important that insurance companies uphold the highest standards of integrity and dignity in claims handling, complaint resolution and in treating customers fairly.

“When an insurance consumer raises a complaint, it is important that the respective insurance company gives it due attention and help the policyholder to their satisfaction. IPEC will not accept a situation where insurance companies deliberately frustrate policyholders by adopting delaying tactics to address the complaints,” he said in a speech on belated Insurance Awareness Day commemorations held recently.

Karonga said it is the duty of insurance companies, their agents or brokers to educate existing or potential policyholders about insurance products that are on offer by explaining both the benefits and disadvantages of the same.

“When a disaster strikes and the policyholder makes a claim, the way in which the insurance company handles that, has a far-reaching impact on the individual’s perceptions on insurance as a whole.

“Those that professionally and timeously process the claim make the individual see insurance companies as useful but those that frustrate the policyholder for months without fulfilling their promise, make the policyholder conclude that insurance companies are not useful.

IPEC does not accept insurance companies that look for excuses not to settle claims,” he warned.

Informed by the National Financial Inclusion Strategy introduced by Government to enable everyone regardless of financial status to participate in the financial sector in Zimbabwe, the Insurance and Pensions Commission came up with Microinsurance to facilitate accessibility and affordability of insurance products to previously excluded communities such as low income earners, small-to-medium enterprises and those with irregular incomes.

Microinsurance makes it possible for informal traders, smallholder farmers/rural farmers or irregular income earners to insure their life, tools of their trade or their products.

That way, Karonga said even if a disaster strikes and they are insured, their insurance policy would help reduce the impact of that disaster.

“As IPEC, we believe that everyone needs insurance because disaster can affect anyone. On the other hand, it is An insurance company or insurance agent/ broker worth his/her salt, does not mislead potential insurance consumers by over promising what a specific policy covers or what they stand to benefit,” he said.

The Insurance Awareness Day commemorations are observed every year on 28 June, the world over.






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