Pamela Shumba, Senior Reporter
FUNERAL assurance companies have reviewed their premiums by up to 100 percent.
Nyaradzo Funeral Assurance Company on Wednesday sent a notice to its policy holders notifying them of a 100 percent hike beginning next month. “In order to preserve the value of funeral policy benefits, kindly note that with effect from June 1, 2019, funeral policy premiums shall be increased by 100 percent. We shall communicate the same to all policy holders through SMS before May 1,” reads part of the letter sent out to policy holders.
Doves Funeral Assurance managing director Mr Talent Maziwisa said the company was engaging its clients to increase premiums in response to the economic environment.
He dismissed reports on social media that Doves was planning to increase its premiums by 350 percent, saying it will not exceed 100 percent.
“We’re currently engaging our clients as we plan to review our premiums. The premiums will vary with portfolios but they’ll not exceed 100 percent. We’re simply focusing on cushioning ourselves against the economic environment and general service provisions,” said Mr Maziwisa.
The review of funeral premiums comes at a time when prices of other services and basic commodities have significantly gone up over the past few months.
Most companies are facing challenges in accessing the much needed foreign currency and this has reportedly forced some companies to buy forex from the parallel market to fund their various activities in contravention of the Reserve Bank of Zimbabwe’s (RBZ) foreign currency exchange regulations.
This has had the effect of increasing prices of goods and services. The cost of living as measured by the Consumer Council of Zimbabwe (CCZ) for the low income urban earner grew by 1,21 percent to $790,77 in March based on the requirements for a family of six from $781,35 in February. – @pamelashumba1