Why was IAZ established
– IAZ is a member organization for all licensed insurance and re-insurance companies in the country. IAZ was formed in 1997 by the first few insurance companies that were licensed following the liberalisation of the economy. As the number of insurers increased, the market needed a common body to speak on behalf of the insurers and to champion the orderly growth of insurance in Zambia. In 2013 IAZ adopted a new code of conduct for its members and amended its constitution to allow the setup of the Association Secretariat, which is tasked with operationalising the objectives of the Association under the guidance of the IAZ Board. All licensed insurers and reinsurers are obligated to be members of IAZ.
Is IAZ an Insurance company?
The insurers Association of Zambia (IAZ) is a member organisation for all licensed insurance and reinsurance companies. Therefore its role is to work towards increasing public awareness of the benefits of insurance, coordinate combined initiatives involving the entire insurance industry, lobby Government and promote best practice among members.
What is Insurance?
Insurance is a risk management tool. It takes the form of a promise to pay for financial losses that arise from specific insured risks, as agreed and specified in the policy document. Examples include third-party motor, fire, burglary and house-owners insurance. In this way, individuals or companies transfer the cost of a loss to an insurance provider, so that if the unforeseen calamity actually happens, insurance will help restore them to the original financial position.
How would one differentiate a genuine insurance company from a fake one?
All genuine insurance companies are licensed by the Pensions and Insurance Authority (PIA) and confirmed members of IAZ. Feel free to contact either organisation to confirm our members.
What are some common general insurance products and what do they cover
(1.) Motor – This covers cost of repair or replacement of damaged property, and medical treatment or cost of death claims (within the insured amount). This could be for a third party or the insured, depending on the type of policy.
(2.)House owners – Covers the cost or repair or rebuilding a house, arising from insured risks such as fire, flood, lightning, storm and impact damage.
(3.)Householders – Covers the contents of the house such as furniture and electrical items against various losses.
(4.)Fire – This covers the same risks as house owners policy but for commercial properties such as offices and workshops.
(5.)Burglary – This covers loss of insured property by theft involving forcible and violent entry or exit (e.g. breaking into or out of a house, shop warehouse, and could even be accompanied by threats of violence to people on the premises).
(6.)Money – This covers loss of money due to burglary or loss of money being transported stolen by robbers (But this does not cover ‘mysterious’ disappearance).
(7.)Goods-in-transit – This covers loss or damage of goods being transported within a country.
(8.)Marine – This covers loss or damage of goods being transported across international borders; whether by road, rail, air or ship (import or export).
(9.)Fidelity Guarantee – This covers loss of money or property due to dishonesty or fraud by an employee. (The Money and Burglary policy only cover losses caused by outsiders)
(10.)Bonds – These are a form of surety or guarantee needed to bid for certain big projects (e.g. road construction) and to carry out certain projects when a bid is successful. Sometimes collateral is needed.
(11.)Machinery Breakdown – This covers the cost of repairs when machinery breaks down due to a risk that is not excluded. The risks include fire, lightning, flood, etc.
(12.)Public Liability cover – Liability means legal responsibility. Public liability is the responsibility to the general public, e.g. to provide a reasonably safe office or shopping environment of visitors. This insurance cover provides for people claiming against the insured.
(13.)Products Liability cover – Products liability is liability (legal responsibility) for providing reasonably safe and reliable products (e.g. restaurant food). This form of cover protects against claims/legal actions arising because of the products sold.
(14.)Employers Liability cover – This covers liability towards employees.
– Weather Index insurance covers loss of crop due to unfavorable weather conditions such as drought or flood. It replaces inputs (such as seed) so that the farmer can replant before the season ends.
-Multi-Crop Peril insurance covers the farmers against crop losses from many causes, including weather, pests, fire, and others. It is more costly but gives wider protection.
-Livestock insurance covers risks to ones livestock
What types of motor cover are available?
(1) Basic RTA (Road Traffic Act) cover compensation for third-party injury or death in a traffic accident, caused by a fully licensed driver. It does not provide for property damage, which means if there is an accident and you happen to damage someone’s property, the cost must be paid from your own pocket It is the minimum legal requirement.
(2) Full third-party cover will pay third-party injury, death and for property damage. This means it covers more the basic RTA cover. However, note that the cover is always for a limited amount and it may cost extra to increase the limits covered.
(3) Third-party fire and theft cover; in addition to the third party cover, will provide financial compensation if your car is destroyed by fire or stolen. But it will not cover loss to the owner cause in an accident (e.g. if the vehicle is dented by another car). It is limited to loss by fire and theft.
(4) Full Comprehensive cover: This cover all of the above, but include damage to the owners vehicle, except for some exclusions such as when driven by an unlicensed driver, that would not be covered.
NOTE – Vehicle usage: The use of the vehicle has to be declared, and if the car was insured as a private vehicle but is used as a taxi (which is commercial use), the insurers may decline to pay a claim. Commercial use may also have special terms and conditions attached.