Fraud in insurance worries CCPC

The Competition and Consumer Protection Commission (CCPC) has expressed concern on the rise of unscrupulous individuals who have embarked on exploiting consumers by masquerading as agents for some insurance companies.

The Commission recorded an increase in the number of consumer complaints recorded during the period January to September, 2019 which indicate that 18% of the Two Thousand and Forty Two (2042) consumer cases it has investigated emanate from the insurance sector with the most exploited individuals being rural based civil servants.

CCPC Director Consumer Protection Brian Lingela says the majority of the cases the Commission has been handling show that some insurance agents and employees have resorted to using consumers’ personal details to enlist them to insurance products and services without their consent.

“It is of great concern to the Commission that while it is easy to effect salary deductions for unsolicited insurance products, it can take more than six months to a year to stop the deductions. This conduct is not only fraudulent but violates Sections 45, 47 and 49 (5) of the Competition and Consumer Protection Act (CCPA) No.24 of 2010 which clearly prohibits unfair trading practices and false

or misleading representations and is punishable with a fine not exceeding ten percent of an enterprise’s annual turnover”. He stated.

Mr. Lingela says the trend is common in Western, Eastern, Muchinga, North Western, Southern, Northern and Luapula provinces.

Further, the Commission has observed that some agents move from one insurance company to another along with their previous customers’ personal details after being dismissed by their employers.

By: Mumba Tailashi.

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