Pension & Insurance Advice Malawi

Lesson to all employers

Bwalo loona za milandu ya pantchito la Industrial Relations Court ku Blantyre lapereka K4.9 miliyoni ngati penshoni kwa a Batumeyo Mikundi omwe ankagwira ntchito ya ulonda ku Safeguard Security Services.

A Mikundi ankagwira ntchito kukampaniyo kuchokera mu 1996 mpaka 2001 ndipo pomwe amapuma ntchito, iwo adapatsidwa K100 000.

Mwezi wa February chaka chino, a Mikundi adakapempha ku nthambi ya boma yoimira anthu pa milandu mwaulere ya Legal Aid Bureau komwe a Chikondi Kasambara adatengera nkhaniyo kukhoti.
Iwo adapempha bwalo k*ti a Mikundi apatsidwe K4 871 182 powerengera nthawi yomwe amagwira masiku a tchuthi, ‘overtime’ komanso ndalama yomwe amasonkha ku penshoni akadali pa ntchito.

Kampaniyo itakanika kupereka ndalamayo, ma sheriff adalanda katundu amene adagulitsidwa ndipo K4 871 182 idaperekedwa kwa mkuluyo.

(Wolemba: Wisdom Chirombo)

Mzuzu. Let's go and appreciate insurance

What if I have a complaint against my insurer?
If for any reason a client of an insurance company feels aggrieved,
they must immediately present their grievances to the insurer. If the
insurer fails to resolve the matter, the complainant should report to
the Reserve Bank of Malawi through:
Phone (voice): 01820299
Email : [email protected]
You can also walk-in to your nearest RBM branch in Mzuzu, Lilongwe or
Blantyre

What are the common insurance policies available for
individuals and small scale businesses?
There are several policies available and the following are some of
them:
i) Home Insurance: This is available in two types:
a) House Owners Insurance: this policy can be bought by any
person who owns a private dwelling house. Cover is
available against losses arising from damage by fire, floods,
storms, earthquakes etc.
b) Households Insurance: this policy can be bought by
anybody who owns households. Cover is available in
respect of loss of and/or damage to property arising from
theft (burglary or house breaking) and fire and other fire
related risks such as floods, storms just to mention a few.
ii) Agro-related insurance: These are policies that may cover
production, processing and marketing losses due to
weather- related issues, and power failure.
iii) Burglary Insurance: This policy is specifically suitable for
business premises and is there to provide cover for assets
against burglary and theft.
iv) Motor Insurance: This policy is broken down according to
the following classes:
a. Third Party Cover - The policy covers an insured
against third party liabilities of either death/bodily
injury or property damage arising out of the use of the
insured’s vehicle.
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b. Third Party Fire and Theft Cover - besides the third
party cover as described in (a) above, this policy also
covers loss of and or damage to the vehicle through
fire (self-ignition) and theft of either the whole vehicle
or its accessories.

c. Comprehensive - this is the most extensive form of
motor insurance which besides providing cover to the
insured as listed above also provides cover for own
damages (damages caused to the insured’s own
vehicle).

OVERVIEW OF INSURANCE
What is insurance?
Insurance is the transferring of the likelihood of a future loss (risk)
at a cost which is called insurance premium.

What is an insurance premium?
Insurance premium is an amount of money charged by an insurance company in exchange to their agreeing to cover an unknown future loss (of a property or life) for either a company or an individual.

Why is insurance important?
1. To prepare for the likelihood of an occurrence or event
which can bring either damage or loss to property or life.
2.To transfer the risk of paying full cost of damaged property
due to unforeseen events.

How to buy an insurance policy?
i) Determine what you would like to insure: home, assets,
farm, crops, livestock etc
ii) Together with your Insurance provider/broker, identify
the appropriate cover you will need; read all the terms
and conditions, including exclusions before purchasing
any insurance policy

As an insurance player, have you ever considered the effects of artificial intelligence on your business in 20 + years to come? Do you think a large team of sales people shall still be necessary? Or perhaps sales shall be done online with more people purchasing insurance using digital platforms?

What shall be the use of having a big underwriting team when companies are gradually adopting machine learning models for risk assessment and underwriting. Artificial intelligence can provide online qoutes directly to the customer.

What strategies are you putting in place to ensure that your firm processes and human resource remains relevant in face of artificial intelligence years to come?

What is Life Insurance
Life insurance is a benefit that is payable upon the occurrence of an event specified in a life insurance policy.

What is Life Insurance Policy?
Life insurance policy is a contract between an insured (policy holder) and an insurer (insurance company), where the insurer promises to pay a chosen beneficiary a sum of money (the benefit) upon an event specified in the policy occurring. The policy holder pays an agreed amount in advance (premium) either regularly or as lump sum.
• Depending on the policy, benefits may be accessed upon occurrence of the following
o Death;
o expiry of term/period;
o terminal/critical illness;
o Injury caused by an accident; or
o any other event that may be specified in the policy

Ready to train Mchinji youths who are ready to become Smile life insurance company agents

Teaching Insurance to Young Champions in Mulanje who are ready to work as Smile Life Insurance agents in Mulanje.

From the pose u can confirm k*t ana anatipanikiza ndi mafunso awa😅

Do you have any insurance and pension related queries, regarding claims, processes and services.

Call or whatsapp 0882777777 and be assisted for free

Did you know that the amended pension act 2023 became effective on 1st April 2023. The amended pension act 2023 has various important modifications. We will be tackling the modifications to help you understand the act better.

Smile Life Insurance, is looking for Interns. Try your luck

From PSPTF

Public Service Trust Pension fund is recruiting. Go try your luck

Vanguard life insurance is recruiting. Go try your luck.

Who are the registered and approved Pension Companies in Malawi?
The following are the Licensed and Registered Pension companies in Malawi as at December 2021.
1. Old Mutual Pension Services Company
2. NICO Pension Services Company
3. NBM Pensions Administration
Limited
4. Zamara Pensions Administrations
Limited
5. Continental Pension Services
Company Limited
6. Vanguard Pension Services
Company
7. LifeCo Pension Services Company
Pension companies in Malawi are registered and Licensed by their regulator, the Reserve Bank of Malawi

Companion insurance is looking for interns. Try your Luck

Do you want to work in Life insurance industry? Old mutual is hiring. Try your luck before 23rd September 2022

Wanting to work in insurance sector? Libertas General is hiring. Try your luck before 13th September 2022

Today we are answering a question on approved General Insurance Companies in Malawi. As at December 2021, The following were the registered and approved General Insurance companies in Malawi.

1. Britam Insurance co.
2. Co-operatives Insurance (CIC)
3. General Alliance Insurance
4. Liberty General Insurance
5. NICO General Insurance
6. Prime Insurance
7. Reunion Insurance
8. United General Insurance

Do not transact with any company claiming to be an approved general insurance company in malawi if it is not on this list without inquiring of its approval status from Reserve Bank of Malawi

Who are the registered and approved Life Insurance Companies in Malawi?
The following are the Licensed and Registered Life Insurance companies in Malawi as at December 2021.
1. Old Mutual Life Assurance Company
2. Smile Life Insurance Company
3. Nico Life Insurance Company
4. Vanguard Life Assurance Company
5. Co-operatives Life Assurance Company
6. LifeCo Life Limited

Life Insurance companies in Malawi are registered and Licensed by their regulator, the Reserve Bank of Malawi.

Do you want to interact with members of Insurance Companies and Pension Companies In Malawi? The Insurance Institute of Malawi has organised a sports day, were almost all Life and General Insurance companies, Pension companies and Insurance Brokers and agents will be available. Its Time to interact, time to Talk Insurance.

Repost:

DID YOU KNOW THAT EVERY EMPLOYER WITH MORE THAN 5 EMPLOYEES IS MANDATED TO BE PAYING PENSION CONTRIBUTION FOR HIS/HER EMPLOYEES??

According to Malawi Pension Act 2011 section 9, every employer shall make provision for every person under his employment to be a member of the National Pension Scheme. Any employer who, without reasonable excuse, fails to comply with this section, shall be liable to administrative penalties under the Financial Services Act.

Has your employer put you on a pension scheme or not? Please find out as it is your entitlement to be on pension.

Today we are answering a question regarding Car Insurance. Which type of Car Insurance is Mandatory in Malawi and Why?

According to Road Traffic Act Malawi sec 141,users of motor vehicle must be insured against third party risks. As such Motor Vehicle third party insurance is mandatory in Malawi. The third party insures such persons or classes of persons as may be specified in the policy in respect of any liability which may be incurred by him or them in respect of—
(i) the death of or bodily injury to any person; or
(ii) damage to property, caused by or arising out of the use of the motor vehicle on a public road.

In short third party covers damages done by your car to other persons or their property. Another cover is comprehensive cover which in addition to covering damages done to other persons or their property it also covers damages done to your car. However Comprehensive Insurance is not Mandatory in Malawi.

WHAT HAPPENS TO YOUR PENSION WHEN YOU ARE FIRED?

Under section 65 of Malawi pensions act, A member can be paid a withdrawal benefit if they have stayed for 6 months without employment after resignation, retrenchment or dismissal from employment. If a member has a total pension of less than K500, 000.00, the member gets the whole amount.
If the total pension is more than K500, 000.00, the member will be paid the employee contributions, and the balance will be kept until the ex-employee reaches retirement age.

PAYMENTS OF BENEFITS ON RETIREMENT
According to Sec 64 of Pensions Act MW, A member can retire if—
(a) the member has reached retirement age;
(b) the member has retired on the basis of years of service or any other conditions under the fund rules as approved by the Registrar;
(c) the member is retired on the advice of a qualified medical practitioner registered with the Medical Council of Malawi, or a legally constituted medical board certifying that the employee is totally and permanently disabled from carrying out the functions of his office;
Total accumulated contributions is payable on retirement in all these three scenarios, i.e member contributions plus employer contributions plus interest earned in these accounts. The member will be paid up to 40% of the total accumulated contributions through their bank account. The remaining 60% shall be used by the member to buy an annuity (monthly pension) from any licensed insurer.
As such the benefits and commutation amounts are the same regardless of the mode of retirement.

Today we will be tackling this topic; Is there a difference in terms of the package or benefits when retiring under medical conditions as compared to retirement based on attaining the retirement age?

Do you know that you/your family can receive your pension funds if;
(a)You have reached the retirement age;
(b)You have retired on the basis of years of service;
(c) You have retired on medical grounds i.e if you are totally and permanently disabled from carrying out the functions of your office;
(d)You are about to leave or have left Malawi permanently;
(e)You have died;
(f)You have permanently left the service of the employer (i.e resigned or contract terminated) and you have not secured another employment for a period of more than six months.

DID YOU KNOW THAT EVERY EMPLOYER WITH MORE THAN 5 EMPLOYEES IS MANDATED TO BE PAYING PENSION CONTRIBUTION FOR HIS/HER EMPLOYEES??

According to Malawi Pension Act 2011 section 9, every employer shall make provision for every person under his employment to be a member of the National Pension Scheme. Any employer who, without reasonable excuse, fails to comply with this section, shall be liable to administrative penalties under the Financial Services Act.

Has your employer put you on a pension scheme or not? Please find out as it is your entitlement to be on pension.

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Common types of insurance

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