The Zimbabwe Pensions and Insurance Rights Trust (Zimpirt) has proposed amendments to the Insurance and Pension Act, citing loopholes in the legislation, which it says encourages the abuse of pension funds.
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The Finance ministry is consulting stakeholders in the insurance and pension sectors in a bid to ensure that pensioners are protected from unscrupulous players in the industry.
In a letter addressed to the Ministry of Finance permanent secretary Willard Manungo, dated May 24, Zimpirt proposed that all latitude given to insurance companies and the industry regulator to make arbitrary decisions with regards to a pension or insurance contract must be removed.
Zimpirt general manager Martin Tarusenga said insurance companies continued to abuse pensioners’ funds and paid paltry pensions.
He said amendments to the Act would address problems in the insurance sector. “The objectives of our proposals are to ensure that pension and insurance funds management are in the true spirit of pension and insurance service provision to provide, financially or otherwise, for stated adversities of life including disability, old age infirmity, death, among other adversities,” Tarusenga said.