FUNERAL policyholders are up in arms with insurance companies who are demanding monthly subscriptions in United States dollars when the majority of the country’s workforce is paid in local currency.
While some companies are accepting subscriptions in local currency but at inflated rates to “preserve policy benefits”, others insist that their premiums be exclusively paid for in United States dollars, according to notifications to clients seen by NewsDay.
Information gathered by NewsDay shows that several funeral assurance companies have already notified their clients that they would shift to US$ tariffs starting this month.
“Dear client. To preserve policy benefits, effective February 2023, your monthly ZWL [Zimdollar] premium shall be pegged to your USD premium of US$25,81 at bank rate,” read a notification from one funeral company.
Prior to this notification, the clients used to pay US$13 for the policy now pegged at US$25,81, according to information gathered by NewsDay.
Government workers yesterday raised fears that the bulk of policyholders would default as their salaries are in local currency.
Zimbabwe Professional Nurses Union secretary-general Douglas Chikobvu said: “We are worried about the demand for US$ subscriptions. This becomes a challenge, hence our constant calls for government to pay its workers in United States dollars. “
Amalgamated Rural Teachers Union in Zimbabwe leader Obert Masaraure said: “The biggest anomaly is that government continues to pay salaries in local currency when the economy has dollarised.
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“Yes, we complain that the unreal policies are short-changing us, but it emanates from government policies in place. We continue urging government to consider paying its workers in US dollars.”
At the time of going to print, Zimbabwe Association of Funeral Assurers president Arthur Mukasi had not responded to written questions sent to him.
A number of services are now priced exclusively in United States dollars as service providers seek to hedge against losses, citing inflation and a weakening local currency.
