By Shingirai Vambe
HARARE: Established to ease pressure and challenges that may arise due to unforeseen circumstances; insurance business has survived the test of time in Zimbabwe because of the country’s economic turmoil.
Proved to be the only surviving business, making profit regardless of the poor banking situation in the country, 80% of Zimbabweans don’t have insurances, life assurance, property, health and funeral insurance to mention just but a few.
Parliament is currently seized with matters arising within the industry as citizens have raised a red flag with some of the players in the industry are said to be short changing clients, who are not getting value for their hard earned money caught in expensive package net.
A case in point is that of Credit Insurance Zimbabwe Limited (Credsure) who signed to be a guarantor and later started changing and refusing to honor their first agreement as an insurance company that had stood in as a guarantor of Douglas Mamvura.
A police report was made at Borrowdale Police Station on July 28 2022 for fraud and/or defeating or obstructing the course of justice against Credsure.
Guarantor is a financial term, describing an individual who promise to pay a borrower’s debt in the event that the borrowers defaults on their financial obligations.
Credsure finds itself tangled in a matter between Harare businessman, top banker and marketing specialist, Douglas Mamvura and Ex-wife Tendai Hlupo-Mamvura following an agreement of settling an outstanding amount of US$486 032.62 of a deed of settlement as ordered by the High Court case 7249/21.
Credsure signed a credit guarantee, “(hereinafter referred to as the ‘surety’) do hereby bind ourselves as sureties in solidum and co-principal debtors unto and in favour of Tendayi Bernadette Hlupo on March 1 2022.
“We hereby acknowledge that we are fully acquainted with deed of settlement, with all the terms and conditions and stipulation therein contained” signed credit guarantee by Credsure.
Mamvura failed to settle as ordered by the High Court to pay the Applicant, Tendayi Hlupo within 24 hours of Service thus Credsure became the responsible debtor, in the correct sense of being a guarantor.
Mamvura has since made an urgent court application for Stay of Execution. The sheriff has already attached his property.
Credsure turned the tables and the matter has been reported to the police, Insurance and Pensions Commission and to the Commissioner, Grace Muradzikwa through a letter that this publication has in possession and the matter is before the Courts.
The letter reads: “Complaint against unethical conduct by Credit Insurance Zimbabwe Limited.
“Insurance Council of Zimbabwe told the Post on Sunday newspaper that the affected persons, if need be, may approach their offices for dispute resolution but it is not expected of an insurance company to breach a contract.”
In their response, Credsure said the Deed of suretyship that they issued was subject to certain conditions being met and the quoted fees or premium was not paid to the surety as expected and for the deed to be valid.
“The issuance of Deed was subject to registration of collateral security in favour of Credit Insurance Zimbabwe Limited against certain immovable property held under deed of Transfer No 1588/2020. Please note the security was not registered as condition to issuance of Deed of suretyship” responded Credsure, in their Heads of Arguments.
They further claimed that for that reason, of failure to meet these conditions the Deed of suretyship was null and void and the applicant, Tendayi Hlupo Mamvura, should deal direct with Douglas Mamvura.
Chegutu West legislator, Dexter Nduna, said the Court has to look on the delictual damages.
“This is a planned thing at the expense of the other part, the Court, ICZ and IPEC must take responsive measures,” added Nduna
He told the Post On Sunday newspaper that the same challenge is being experienced with the third part insurance which is defunct yet established according to Roads Act 13:11. Majority of road traffic accident victims haven’t been compensated thus need to repeal the road Traffic Act.
Nduna said insurance companies are making an eke through unclaimed funds and unethical business practice.
Credsure is being represented by Kentor and Immerman and Tendayi hlupo is being represented by Chitapi and Associates