Who Regulates Insurance Companies in Zambia? [Anwer] In Zambia, regulation of the insurance companies is done by the Pensions and Insurance Authority (PIA) which controls the pension system, pensions, and insurance providers through a combination of off-the-spot analysis and on-the-spot inspections as shared in this article.

Regulating Insurance Companies in Zambia

The Pensions and Insurance Authority (PIA) is the mandated sole regulator of the pensions and insurance industry in Zambia which was established as a legal entity based on the amendment to the Pension Scheme Regulation Act Number 28 of 1996 as which was amended by Law Number twenty-five of 2005.

Complaint procedure

The Pensions and Insurance Authority does receive and process complaints from clients of insurance companies against its companies registered by the authority. The mandate to regulate these insurance companies by the Authority is given by the Insurance Act no. 27 of 1997 which empowers it.

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The Authority has a team of highly qualified and experienced staff that is capable of handling complaints and finding resounding resolutions that complainants deserve.

Types of insurance

Life insurance provides for your family or some other registered beneficiary after you have died. There are two main types: term life insurance provides coverage only for the duration of the policy and only pays if the insured dies; life insurance policies provide savings and insurance and have a provision that allows the insured to collect before death hence why its of great importance to know who regulates insurance companies in Zambia.

Health insurance

Health insurance pays for hospital stays, doctor visits, and prescription medications. The most useful policies offered by many employers are those that cover 100 percent of hospital costs and 80 percent of the cost of drugs and medical services. The policy usually contains a deductible; the insurer only pays when the amount to be deducted has been reached.

Homeowners insurance

Home Owner insurance covers damage or loss from fire, theft and other hazards stated. No policy routinely covers all hazards. Homeowners should assess their needs taking into account the possible risks in their area – earthquakes, hail, floods and the like. Homeowner’s insurance policies provide reduced coverage if the property is not insured for at least 80 percent of the replacement cost. 

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When there is inflation, this requirement means that the owner must adjust the policy limit upwards annually. Or they buy what is known as a driver, which automatically adjusts for inflation. If property values ​​drop sharply, homeowners or commercial buildings can save by reducing the sum insured.

Car insurance

Car insurance is arguably the most common type of insurance. Motor vehicle policies are required everywhere in Zambia. A typical car policy covers liability for personal injury and property damage, medical payments, damage or loss of the car itself, and fees for lawyers in the event of a lawsuit.

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There are different types of car insurance policies that insurance companies offer. For example, there are comprehensive, third-party insurance as well as third-party fire and theft insurance. Comprehensive insurance covers everything and as such, it is expensive. Meanwhile, third-party car insurance is cheaper and mainly covers the property or person that may be injured by a policyholder depedning on how much you pay. Lastly, third-party fire and theft car insurance protect the vehicle against fire and theft. However, this comes short of comprehensive insurance.

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