Insurance laws at Zimbabwe
Zimbabwe's insurance sector is governed by the Insurance Act [Chapter 24:07], which provides the legal framework for the regulation and supervision of insurance and pensions in the country. The Insurance and Pensions Commission (IPEC) is the statutory body responsible for overseeing the industry.
š Key Developments in Insurance Law
1. "No Premium, No Cover" Policy
īIn May 2023, the government introduced Statutory Instrument 81 of 2023, amending the Insurance RegulationsīīThis regulation stipulates that insurance coverage is only valid upon the receipt of the full premium payment Consequently, insurers and brokers are prohibited from providing insurance coverage on credit If premiums are not paid at the inception or renewal of a policy, the policy is considered not taken up or lapsed, respectivel
2. Government-Run Third-Party Motor Vehicle Insurance Scheme
Starting April 1, 2024, the Zimbabwean government assumed control of the third-party motor vehicle insurance scheme This move aims to address challenges faced by motorists with private insurance companies and to ensure more consistent compensation for losses The government expanded the coverage to include medical benefits, rehabilitation, injury grants, funeral grants, and loss of income, beyond the existing provisions for death, permanent disability, medical, and funeral expense
3. Insurance and Pensions Commission Amendment Bill, 2024
The proposed amendment bill seeks to enhance accountability and transparency in the insurance and pensions sector It introduces provisions for the registration and supervision of insurers, mutual insurance societies, insurance brokers, medical aid societies, and pension and provident fundsīīAdditionally, the bill empowers IPEC to approve service providers such as actuaries, asset managers, and credit rating agencies, and to enforce compliance with sector law
šļø Regulatory Framework
Insurance Act [Chapter 24:07] īThe principal legislation governing insurance activities in Zimbabw.
Insurance Regulations, 1989 (SI 49 of 1989) īProvides detailed provisions for the implementation of the Insurance Ac.
Insurance (Amendment) Regulations, 2023 (SI 81 of 2023) īIntroduced the "No Premium, No Cover" policy and other reform.
Insurance and Pensions Commission Act Establishes IPEC and outlines its functions and power.
š Summary
Zimbabwe's insurance laws have undergone significant reforms to enhance the sector's stability and protect policyholdes The introduction of the "No Premium, No Cover" policy aims to address liquidity challenges faced by insurers, while the government's assumption of the third-party motor vehicle insurance scheme seeks to ensure more equitable compensation for road accident victisī īThe proposed amendments to the Insurance and Pensions Commission Act further strengthen regulatory oversight and promote transparency in the industy.
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