insurance firms 19.08.10.jpgThe insuring public has called on government to investigate local insurance companies that are allegedly shortchanging clients in a move likely to hinder economic growth.

According to proposals by members of the insuring public for consideration by the government through the Insurance and Provident Funds Commission, there is need for responsible authorities to monitor alleged malpractices in the insurance sector that have resulted in clients being ripped off on returns from investments and insurance cover against risks.

Members of the public told ZBC News that it is in the interest of the economy that insurance companies should operate in a transparent manner for the benefit of business and households.

Contacted for comment on the alleged shortchanging trading practices by insurance companies, the chief executive officer for a local insurance company, Mr. Charles Madziva said the sector is committed to fair trading activities.

The Insurance Institute of Zimbabwe president, Mr. Simon Chapereka also revealed that insurance companies are complying with stipulated regulations.

“We are just complying with the regulations and we hope to meet the investing public in the near future,” said Mr. Chapereka.

Government last year introduced new minimum capital thresholds for insurance companies to protect the interests of insuring public and firms.

In terms of the regulations, insurance firms are required to have reserves of US$300 000, reinsurance firms US$400 000 and funeral assurance companies US$500 000.