Zimbabwe Insurance Brokers (ZIB) develops ‘Pothole’ insurance cover

Zimbabwe Insurance Brokers (ZIB) develops ‘Pothole’ insurance cover

Insurance24 Reporter

HARARE, The Zimbabwe Insurance Brokers Limited (ZIB) has introduced a pothole insurance product that covers certain damages on vehicles as a result of potholes on the roads.

Most roads in Zimbabwe, particularly in the urban centers are characterized with potholes which has seen several vehicles getting damaged. The country during the 2016/17 rain season received above normal rains which depleted further the state of the roads.

“Resultantly, potholes have been popping up on our roads everywhere and this has had negative effects on every motorist in Zimbabwe.

“It is against this background that ZIB has worked to developing a cover that assists motorist to get their vehicle repaired due to damage sustained by vehicles as a result of road inequalities, which is not being covered in the country,” the company said in a correspondence seen by Insurance24.

According to the company, the pothole insurance product covers damages on Steering Rack system, Shock absorbers, tyre bursts, wheel rims and springs.

The cover, ZIB said applies to all private type vehicles, however, cover for other vehicles are optional at an additional premium.

Zimbabwe Insurance Brokers Limited (ZIB) has been in existence for three decades and it said it has always been passionate about providing its clients, Flexible risks solutions.

“It is through this passion that we have come up with a product that will assist you in your time of need to get you back on the road when you vehicle gets damaged by hitting a pothole.”

During the quarter ended 31 March 2017, Insurance brokers wrote $24.09 million in business, accounting for 35.31% of the total Gross Premium Written (GPW) for non-life insurers, which however, was 2.02% lower than 24.59 mln written for the same period in 2016.

Net brokerage commission also declined 2.78% to $4.17 mln from $4.29 mln last year same quarter.

On other hand, the asset base for insurance brokers marginally increased from $27.14 million as at 31 March 2016 to $27.18 million as at 31 March 2017 and this was mainly attributable to a growth in investments from $0.66 million to $1.28 million reported as at 31 March 2016 and 31 March 2017 respectively.

The asset base was skewed towards property, premium debtors as well as cash and cash equivalents which accounted for more than 51% of the total assets.