Charmaine Chaumba Business Reporter
Diversified insurance firm, Zimnat, has come out to correct misconceptions about their diaspora-focused funeral policy.
There were claims that Zimnat’s foreign currency denominated product, the Diaspora Funeral Cash Plan (DFCP), was at risk of being rendered ineffectual after the termination of the multi-currency system and the re-introduction of the Zimbabwe dollar.
The group has, however, said the Government guaranteed that diaspora related products like DFCP have been ring-fenced to protect the insured.
“The Insurance and Pensions Commission (IPEC) and the Reserve Bank of Zimbabwe (RBZ) have given authority to ring fence funds related to DFCP for investment offshore with a view to guarantee the ability of Zimnat as the underwriter to settle claims in the currency and to the value contracted.
“The Government has been unequivocally supportive of diaspora-related products. Circular 13 of 2019 from IPEC dealing with the authority to offer selected insurance policies in foreign currency, coming after the gazetting of Statutory Instrument 142 of 2019, gives provisions to this effect,” said Zimnat.
“As a policy, Zimnat engages internationally reputed re-insurers to carry any risk that Zimnat cannot carry, including but not limited to currency-related risk.
“In simple terms, Zimnat has in place sufficient protections to guarantee the settlement of all DFCP claims in foreign currency.”
Meanwhile, Zimnat has also clarified the position with respect to its relationship with Destiny Financial Services, an appointed agent of Zimnat Life Assurance for the DFCP after claims that the Destiny wanted to drop Zimnat as underwriter.
“It is not possible to drop an underwriter from an insurance policy or contract. The alleged dropping of Zimnat as an underwriter by Destiny Finance is a non-event.
“Zimnat cannot stop a non-exclusive agent like Destiny Finance from engaging an underwriter of their choice, particularly to sell new business,” said the firm.
“However, Zimnat as a responsible financial services provider with a fiduciary responsibility to policy holders, has an obligation to all existing clients to give them sound financial advice.
“Zimnat also has an obligation to support existing policy holders in their decision making with regards to their policy.”
Zimnat is part of the Sanlam Group, which is the largest non-banking financial services company on the continent, with a footprint across 33 countries and has over 90 operating businesses in Africa and Asia.