Home » Business » Insurers Navistar, Global Suspended

Navistar Insurance Brokers and Global Insurance Company — implicated in an alleged scandal at Air Zimbabwe (Private) Limited involving two million euros — have been suspended pending cancellation of their licence by the Insurance and Pensions Commission.The regulatory body has also fined the two firms US$200 each for breaching the Insurance Act.

“Navistar Insurance Brokers and Global Insurance Company who were involved in the transaction of external placement of Air Zimbabwe risk were both fined in terms of Section 72(3) of the Insurance Act (Chapter 24:07) as read with the Finance Act (Number 3) of 2009,” IPEC commissioner Mrs Manett Mpofu said.

The two firms are alleged to have inflated insurance premiums and claimed money for services not rendered.

Mrs Mpofu said if a registered company violated the Insurance Act, IPEC could impose fines and penalties of up to US$5 000.

They can also be stopped from taking on new business and, in the final extreme, be de-registered.

“So, we are saying in these circumstances we immediately suspended the firms from conducting any new business,” said Mrs Mpofu. “We have since written to them informing them of their suspension.”

Mrs Mpofu said the two firms were sent letters of suspension on March 21.

Three Navistar Insurance bosses — managing director Givemore Nderere (46), director Vukile Hlupo (45) and finance and company secretary Orton Mawire (60) — have appeared in court on fraud allegations.

The trio’s arrest followed those of Air Zimbabwe company secretary Grace Nyaradzo Pfumbidzayi (48), chief executive Innocent Mavhunga (53) and his predecessor, Peter Chikumba.

Source : The Herald