Insurance and Pensions Bill Approved

By Tatenda Mujeyi

Cabinet last week considered and approved the Insurance and Pensions Bill as announced by the Chairperson of Post Cabinet briefs Ministerof Information, Publicity and Broadcasting Services, Monica Mutsvangwa.

“Cabinet considered and approved the Insurance and Pensions Commission (Amendment) Bill, 2020 which was presented by the Attorney-General on behalf of the Chairman of the Cabinet Committee on Legislation.” The Minister said.

The bill comes at the most opportune time as it seeks to create a sustainable pensions environment in Zimbabwe which has constantly faces challenges.

“The Amendment Bill mainly seeks to ensure the maintenance of a fair, safe and stable insurance and pensions sector for the benefit and protection of policy holders and pension fund members.” She emphasised.

The Bill gives the Insurance Commission powers to accredit insurance service providers for accountable transactioning within the sector.

“The Bill gives the Insurance Commission the powers to accredit actuaries, auditors, asset managers, credit rating agencies and other service providers. The Commission will conduct investigations where it sees fit for the purpose of preventing contraventions in the insurance sector through provisions of the Bill.” The Minister added

The Bill seeks to guarantee compensation of insurance and pension holders, an are a that has faced many challenges in time as the Zimbabwean dollar has constantly devalued.

“Among other functions, the Board of the Insurance and Pensions Commission shall ensure compensation is paid to beneficiaries for losses they may incur, and shall determine the level of such compensation, based on the different classes of insurance policies or type of pension or provident fund.” Mutsvangwa further emphasised.

The bill gives the Insurance and Pensions Commission powers to regulate businesses of companies plieng the insurance and medical aid business.

“Above all, the Commission shall keep and maintain asset registers for insurers, insurance brokers, pensions and provident funds. The National Social Security Authority, Medical Aid Societies and any other persons conducting insurance business will now be subject to regulation by the Commission.” The Minister further informed.

The Bill is expected to bring sanity within the pensions industry which has of late been central in corrupt practices.

“The Insurance and Pensions Commission Bill will therefore strengthen the integrity of the insurance sector and enable it to play its role in supervising the sector.” The Minister also added.

The Bill comes at a time the Insurance and Pensions Industry has been affected by the continual economic viability challenges and corruption.

Tendai Guvamombe