Covered or Conned?

The Rise of Fly-By-Night Insurers in Zimbabwe

By Newton Mambande

HARARE – As Zimbabwe’s economy continues to grapple with challenges, a new menace has emerged on the roads: fly-by-night insurance companies that are fleecing motorists with impunity. These rogue operators are taking advantage of regulatory weaknesses and the desperation of drivers who need cover to stay on the road.

The insurance sector in Zimbabwe is meant to provide a safety net for motorists, protecting them from financial ruin in the event of an accident or theft. However, some companies are exploiting this system, collecting premiums from unsuspecting customers only to vanish when claims are made.

I have encountered cases where policyholders have been left stranded after accidents, with their claims rejected on flimsy grounds—or the insurance company simply disappearing. This pattern of behavior is costing Zimbabwean motorists millions, and it is time for action.

The problem is compounded by ineffective regulation. The Insurance and Pensions Commission (IPEC) is mandated to oversee the sector, but its efforts appear insufficient. Fly-by-night operators can allegedly set up shop, collect premiums, and shut down before they are held accountable.

So, what can motorists do to protect themselves?

Firstly, research the insurance company thoroughly before buying a policy. Verify that they are registered with IPEC and have a credible track record. Avoid choosing an insurer based solely on price—the risk is not worth the savings.

Secondly, demand transparency. Ask detailed questions about the policy, understand exactly what is covered and what is excluded, and ensure you receive all terms and conditions in writing.

Lastly, advocate for stronger regulation. IPEC needs greater authority and resources to crack down on rogue operators and protect consumers effectively.

We cannot allow these fly-by-night companies to continue operating with impunity. Our hard-earned money deserves better protection.

About the Author:
Newton Mambande is an entrepreneur and researcher who has published scientific research in scholarly journals. He can be reached at newtonmunod@gmail.com or +263773411103.