Old Mutual Insurance Co loses $41 000

Sheillah Mapani Herald Reporter
Old Mutual Insurance Company Private Limited is suing one of its insurance agents for stealing more than $40 000 that was paid for insurance cover.

Francis Motsi appeared before Harare magistrate Mrs Josephine Sande yesterday facing charges of theft of trust property.

He was remanded to October 24 on $200 bail.

The prosecutor Ms Linda Gadzikwa alleged that sometime in January 2000, Motsi registered an insurance broking firm with the commissioner of insurance called Hearview Insurance Broker (Pvt) Ltd.

It is alleged that in the same year, Motsi entered into an agreement with Old Mutual Insurance Company operate as its agent.

In terms of the agreement, Motsi was to hold in trust money he would have received from the company’s clients for 30 days before remitting it.

The court heard that pursuant to the agreement, Motsi entered into a contract with Zimtrade where Old Mutual would provide insurance cover for ZimTrade’s motor vehicles and electronic equipment.

It is the State’s case that during the period extending from January to December 2016, he received a total of $41 220,60 from ZimTrade for the purpose of registering the motor vehicles and electronic equipment under the comprehensive insurance cover.

Motsi allegedly failed to remit the funds to Old Mutual but converted it to his own use and registered the said property under third party cover.

The offence came to light in January this year, when Old Mutual received a claim from ZimTrade after one of its motor vehicle was involved in a road accident.

The company reported the matter to the police leading to Motsi’s arrest.

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