The Minister of Finance and Economic Affairs, Simplex Chithyola Banda has expressed satisfaction over the Parliamentarians positive nod of the Insurance Act of 2024 which aims to provide regulation of the insurance industry to promote safety and protection of the policy holders.
The minister said this on Tuesday during the Parliamentary session in Lilongwe.
He said the Act will help to bring sanity in the insurance industry and wipe tears of business people who have been crying for so long due to poor laws concerning the insurance policy.
“The Act will ensure transparency and accountability by providing opportunities for collaboration between policy holders and insurance company owners.
“The Act will also apply to insurers, insurance brokers , insurance agents, loss assessors, loss adjustors and claims settling agents as entities who do not comply with this risk having their licenses revoked,” said the minister.
The Act repeals and replaces the Insurance Act (Cap. 47:01) to address “emerging issues” in the insurance industry after having consultations with all key stakeholders prior to passing it in parliament.
“It will provide the Ministry with powers to criticise all properties that can be allowed under the insurance from the public,” he added.
Reacting to the passing of the Act, the opposition Democratic Progressive Party (DPP) Shadreck Namalomba expressed concern that the Bill had several gaps that would ultimately benefit insurance agents at the expense of policy holders and Malawians.
