Dear readers,
Insurance is one of the most important aspects of our lives. Having or acquiring insurance is a fundamental part of being financially prepared for any eventuality that may befall us.
Taking out insurance will give you the comfort that one day your insurance will cover for you in cases of fire, theft, vehicle maintenance, or even in the event of your passing.
There are several reasons why insurance is crucially important for every working person. These are to protect your family or loved ones, to leave an inheritance, to pay off debts and other expenses, to add more financial security and, of course, to bring peace of mind to yourself and your loved ones.
What stands out head and shoulders above the order of importance is perhaps the need to have life insurance to replace your income when you pass on.
“If your loved ones or family members depend on your financial support for their livelihood, then life insurance is a must.”
Education policies are also very important, as is short-term insurance, to cover for vehicle damage and other household losses due to theft and/or fire.
Such is the importance of insurance that we cannot do without it. Regardless of how important it is in our lives, insurance can remain confusing and frustrating.
I have personally heard of accounts by many consumers of financial services who have taken out insurance without understanding how and at which stage it will benefit them. Also, there are accounts of consumers who have already paid more in premiums than what will be paid out for the particular benefit for which they acquired the insurance policy.
This is a major issue that points to either service providers not doing their work properly or being dishonest, while others simply trick consumers into taking out insurance without explaining why it is needed.
This situation has caused financial loss, frustration and other problems for people who have put all their hopes on that one insurance policy. To their dismay and utter disappointment, they are told that the policy is for a different purpose and not for what was initially ‘explained’ to them. This is clearly a situation that needs serious attention. The protection of consumers of financial services and products is a very strategic and important element of the mandate that NAMFISA is expected to carry out.
Consumers should be protected from deliberate misleading and consequent financial losses. This does not bode well for the individual’s self esteem and the financial industry’s reputation. The interest of the consumer is primary and it needs to be protected at all cost.
It is in that spirit that NAMFISA has decided to start insisting that companies adopt the ‘Treating
Customers Fairly’ Policy to ensure that they are sold the service that meets their needs and whose implications they are made to fully understand. This programme will be rolled out and will be announced in other media platforms.
I encourage consumers of financial services and products to take active interest by adopting an inquisitive mindset that asks, probes and interrogates the products it is offered and contracts it is made to sign.
It is the consumer’s right to be treating fairly and to get maximum benefit for what they are paying for.
Nothing short of that will be acceptable in Namibia.
Happy reading.
Phillip N. Shiimi
NAMFISA CEO