Tinashe Makichi : Business Reporter
The Insurance and Pension Commission has clamped down on insurance companies that are using unregistered insurance agents across the country. While responding to a request by The Herald Business on why some insurance companies continue to use unregistered agents, IPEC head, prudential supervision Pupurai Togarepi said all companies using unregistered agents are being dealt with according to the law.He said the operation is a follow-up to the blitz that was launched recently on all insurance touts operating in different towns across the country.
“All companies who are illegally using unregistered agents are being dealt according to the law. The blitz to weed out unregistered agents and fake cover notes was very successful.
“Many such touts were arrested and convicted. As Ipec we would like to thank the Zimbabwe Republic Police for assisting us to apprehend the suspects. We are going to descend heavily on insurance companies using unregistered agents,” said Mr Togarepi.
“We also encourage members of the public to buy insurance from licensed insurance brokers and agents,” he said.
It is believed that Government is losing about $5 million annually to vehicle insurance scammers preying on two thirds of the country’s private and public passenger vehicles.
As a result, a mere one third of Zimbabwe’s half a million vehicle population has genuine insurance cover.
Allegations say there are well orchestrated insurance rings duping motorists as well as starving the national coffers of much-needed revenue.
It is alleged that most of the fraudsters work closely with some insurance companies, by using parallel systems and counterfeit insurance cover notes that are not captured by the companies.