I WISH to express my displeasure over the manner insurance companies are robbing motor insurance policyholders in broad daylight by demanding that motor insurance premiums be paid for a full quarter regardless of the number of days remaining before the end of the quarter following the SI on display of insurance discs on motor vehicles.
Honestly speaking, why should policyholders be made to pay premiums for a full quarter yet their vehicles will only be on cover for a period of less than 90 days before the end of the quarter?
What insurance principles are being used here? As far as I am concerned, this is not insurance. Motor insurance cannot run on the same mechanisms as road tax.
The payment of insurance premiums is risk-based and varies for a particular period. On the other hand, payment of road tax by all motorists does not vary with any risk. Are premiums not supposed to be prorated so that policyholders pay for only the period they are on cover? Why is Pensions and Insurance Authority allowing this?
Doesnâ€™t this regulator see the implications of this on so many poor Zambians who are barely surviving in these tough economic times? Why should insurance companies be allowed to get premiums for a period they have not provided cover?
Where are consumer watchdogs such as CCPC in all these things? I hope the powers that be will address this matter promptly and help serve many Zambians from being robbed in broad daylight by insurance companies.