4 Types of Insurance Everyone Should Have

There's a ray of hope for the Zimbabwean economy following the transition that took place last month. In this new era for Zimbabwe,  there's going to be a need for every individual to have a solid financial plan. Protecting your most valuable assets is a key step in creating that plan. The right insurance policies will protect your possessions and also your earning power. However insurance is one of the most complex services anyone can buy yet it is so necessary. There are so many insurance policies available, some of which you don't need but you are probably going to see them being marketed to you, something which can get your head spinning. These are policies which you can not do without 

Health insurance /Medical insurance
Your health is arguably your most valuable asset. When you are in perfect health you are able to work and earn a living and also enjoy what you have worked for. Without health insurance or medical aid, any attack on your health could lead to you failing to get medical attention or even leave you in debt from medical expenses. Medication and medical cost are rising everywhere in the world and this makes health insurance necessary. Health insurance covers you against unforseen illnesses or body injuries. It makes sure you are able to see the doctor when you get ill or when you need a routine checkup, or when you need to pay for medication. Health insurance or medical aid has for long been expensive and it can be a financial burden for anyone but that does not take away the fact that potential medical cost can be a bigger burden. It's good that many employers provide health insurance for their employees. If your employer can not afford to provide you with medical aid it does not mean you don't need it. You can not risk going without it.

Life assurance 
Your life is valuable, without it you can not work or provide for your family. We all live but with the realisation that at some point we are going to die. When you are gone there is an income gap that you create in your family which can live your family or dependants in a financial predicament. It's is unfair for you to live your family in a financial predicament when they have to bear your death. There are also costs involved in the funeral itself which those who are left behind should take care of. Life assurance protects your family in the event of your death by providing them with financial support. This will make the lives of your family members to be easier in the event of your death. Some life assurance policies also provide for the funeral which will ease the burden of funeral expenses. If you are young it's tempting to think life insurance is not important. The reality is you can die at any age. Life insurance is cheaper if your are younger and you will only pay for a defined number of years if you start earlier.

Home Insurance
Building a house is a very expensive proposition. Replacing it is even worse,considering it will be redoing something you had done already. Many people consider a house as a life time investment. Losing your property because of a fire, flood, or any other kind of accident can be devastating. I know a few people who lost everything they had in a fire and it totally destroyed their life, not only physically but even emotionally. Homeowners insurance makes sure that your house is covered in the event that it is destroyed by fire or weather events or even man made disasters such as burglary. Homeowners insurance will pay for  repairs or reconstruction of your home which will save you thousands or millions of dollars. One of the biggest advantages of having insurance is piece of mind. It good to know that even when something happens to your home you will never completely lose it. If you do not have a house you can still ensure your belongings through a householders insurance policy. This policy will replace your possessions in the even that they are lost in unforseen circumstances.

Motor vehicle insurance
You probably don't need this one if you don't own a car or you don't dream of owning one. Car accidents have become common on the roads of Zimbabwe. Even if you are the best driver in the world, you will drive in a road next to a person who isn't. Car accidents cause damage to the car and also might cause injuries to those involved. Motor insurance is mandatory for everyone who owns a car in Zimbabwe. Motor vehicle insurance protects you by paying for repairs or replacement of your car if it is damaged due to accidents, fire or even if you lose it through theft. Having motor vehicle insurance also  helps you to save money by paying for liabilities that might arise as a result of accidents. A good examples is paying for injuries to another person you would been involved in an accident with.

I am not saying these are the only insurance policies you need. You have probably seen a lot more insurance policies been sold to you, some of which you need and some which you don't need. This does not mean you should not get them, but it is best to read through what they cover and compare them with what you already have to make sure you don't duplicate. It's best that you read policies carefully or better yet work with an agent to be certain about the cost and coverage of your insurance.

Why you should not buy insurance direct without an agent or broker

My long time friend just got a new car and naturally he wanted to find the best deal on his motor vehicle insurance. He told me he had gotten a quote from one company but he just didn't know if it was the best deal for him. There are so many ways to buy insurance including buying direct at the insurance company, buying from an insurance broker or an agent. There has been also developments in the distribution of insurance were insurance is sold in banks and supermarkets. We have also seen the birth of an online distribution channel called Zimselector.com where you can buy your insurance online without visiting any physical location.

Anyone buying insurance should first weigh the benefits of each method of purchasing insurance before going ahead and buying insurance. There are three major channels you can get insurance from that is direct, agents and brokers. I'll explain the difference between these so you can understand them better and that will help make an informed decision

Direct
Buying direct means you go directly to the insurance companies and buy from them without anyone else being involved. You can do this by either walk in to their offices, contacting them via telephone or email. There are about 25 direct insurance companies in Zimbabwe. The common names are Nicoz Diamond, Old Mutual, Zimnat, Credsure etc.

Agents
There are two types of agents which are:

Tied Agent
This is a 'middleman' between you and the insurance company. Tied agents sell insurance for only one specific direct insurer for example they can only sell exclusively for Old Mutual.This means that they work directly for the insurance company and every policy they sell they give it to a specific insurance company. There are many tied agents around the country that sell insurance at post offices, banks, service stations and supermarket.

Multiple Agent
Unlike the tied agent this type of agent can sell insurance for more than one insurance company. The agent works directly with the client to allow a better search and choice of the best insurance company. However that does not mean that they have access to all types of policies from all insurance companies. Whereas a tied agent is a representative of the insurance company, multiple agents represent both the client and insurance company.

Brokers
More like the multiple agent, brokers search for the best policy for the client from different insurance companies. They are usually bigger in size than agents and therefore they usually give better advice than agents. They also have better knowledge of offerings from different insurance companies. However they represent only the client and not the insurance companies.

Why you should not buy direct
There are things which you can do on your own but buying insurance is not one of them. Insurance contracts have a language that can be confusing to a layman. Terms in insurance change every year and when you don't have anyone to alert you about this, this could lead you to you making the wrong decisions. You will never know about other better deals if you go directly or if you use a tied agent. Unless you have inside information on all insurance companies or unless you have thorough knowledge of the insurance industry it is not advisable to go direct

Why you should use a multiple agent or a broker
Multiple agents and brokers are usually focused on your unique needs as their client. They help you with comparison shopping and zone in on the best prices and terms from different insurance companies according to your different needs. They also give you advice on best practices to reduce your losses and also to get your insurance premiums down. They have a broader understanding of insurance companies offerings and key benefits because they work with a variety of insurance companies. With these you get a more personalized experience where you can also be assisted with lodging your claim. In the event that your claims is disputed by the insurance company multiple agents and brokers represent you to the insurance company. Because brokers and multiples agents offer big chunks of business to insurance companies they at times get discounted rates or they negotiate lower rates for their clients which you can not do when you go directly to insurance companies. The best part for using these intermediaries is you don't have to pay them for their services. They get paid on commission by the insurance companies .

Let me know how you buy your insurance

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Professional Indemnity Insurance Explained

It has been an interesting period for Zimbabwe in the last month or so. Both local and international news was ablaze with a lot of stories on Zimbabwe. With some international media houses unable to be on the ground in Zimbabwe, I saw some asking for permission to use photographs or videos taken by ordinary citizens. The reason being journalist are required to provide their service with a certain level of professionalism and that includes crediting owners of photographs they use. In the event that they use a picture without the owners consent, that would be unprofessional and also it could lead to legal action and financial losses. However not only journalist are required to provide their services with a certain level of professionalism. Many other businesses are required to act with professionalism and can face legal action if they don't. This means a lot of other people are at the risk of legal action in the event that they don't perform their duties with expected professionalism. There's an insurance policy made specifically for this type of risk called Professional Indemnity Insurance.

What is Professional Indemnity Insurance?

Professional indemnity insurance is a type of insurance that protects you or your business in the event that someone claims that you didn't give them adequate services, advice or designs. It covers the costs to defend yourself or your business legally against such a claim and also the costs to compensate or correct these mistakes or the cost of settling the claim. So you would say this policy protects you or  your business from a disgruntled customer who could have lost money, health, life etc due to the advice or service you gave them. It is important that you cover yourself or your business in the event that you make a mistake. Its important to know that no matter how experienced or knowledgeable you are, there is always room for mistakes, even more when you run a business were you can not supervise everyone work. Sometimes allegations can still come regardless of you doing the right thing therefore you have to be protected when they do come.

What does Professional Indemnity Cover?

Some of the covers under the policy include but are not limited to
1. Professional negligence - making mistakes through carelessness for example giving wrong advice to a client 
2. Infringement of copyright  or intellectual property rights - for example using a photograph on your website without the permission from the owner 
3. Defamation and libel -  when your words end up causing harm to the reputation or livelihood of another person or organisation 
4. Breach of confidentiality - happens when you share confidential information about a client with another party without the consent of the client 
5. Loss of a clients data, documents, goods, money etc with which you are made responsible for 

Its best for you to find the correct professional indemnity insurance for your profession and make sure you are covered for these risks.

Who should take professional Indemnity cover?

Any person or business that provides professional services or expertise, skills, advice or that have access to information that is confidential, or that could produce information that could infringe copyrights or intellectual rights should take this policy. 

Typical purchasers of this policy are accountants, architects, engineers, financial advisers, lawyers, insurance consultants and brokers, doctors and journalists.

Do you need Professional Indemnity Insurance?

If you provide services, advice or designs you definitely need professional indemnity! While you could be the best in your business, one mistake could ruin your entire operations. Sometimes it could be your staff responsible for this mistake and not even you as the owner of the business. If your client suffers a huge loss because of that mistake they will likely come at you for re-compensation. Defending yourself from claims of malpractice, breach of duty or misconduct will cost you money and time. So the policy protects your business by covering you for the cost of such claims and also legal defense costs. 

Farming insurance is not a one size fits all policy

As we are getting into the 2017-18 farming season, farmers are likely to secure general farming insurance and assume that the policy will address all their risks. Nonetheless, these policies will not always be befitting for the risk scenario of each farmer. There could be circumstances were the protection implied by the farmer is not even provided for by the policy they take. The biggest mistake you can make as a farmer is to think that every type of crop or livestock policy will work equally well for everyone. You should commit your time and effort to searching out and understanding the best policy for you and negotiating for conditions that best suit your farm. It was all going to be easy if a one size policy could fit all but unfortunately that is not the case, so you would want the size that fits you.

Here are some reasons you should have your farming insurance tailor made

Different types of  insurance – you need to get information on how different types of farming insurance work in order to make the right decision. It is irresponsible to get one type of insurance without understanding the other.

Livestock insurance – It is essential and recommended for farmers raising animals commercially to manage risks by having livestock insurance. Animals covered by livestock insurance include but are not limited to cattle, pigs, sheep, goats and horses. Livestock insurance on its own is also not a one size fits all as it comes in different types. There is comprehensive coverage were several types of animals are covered under a policy and there is individual policies where there is individual cover for a specific type of animal. You can further customize the policy depending on the particulars of the farm for example having individual cover for your pure breed Brahman that costs $5000 each and having a blanket cover for the rest of the animals under a maximum coverage of $500 per animal. Common causes of loss covered by this policy are death of animal by fire, lightning, falling objects, explosion, electrocution, drowning, floods, snake bites and theft.

Poultry Insurance – Poultry are normally insured separately from livestock. This type is applicable to farmers who have layer birds, broiler birds and other types of poultry. Under this type of insurance there’s is usually a minimum number of birds required for you to be able to take the insurance. The policy usually covers for death of birds due to fire, lightning, floods, cyclones, storm, tempest, theft, diseases contracted during the period of insurance. This policy can be customized to include cover for the growing facilities of the poultry and liabilities that might arise as a result of the operations of the farm.

Crop Wind and Hail insurance – This insurance covers and is limited to crops in the field only. It covers loss of the crop due to wind and hail. It is probably suitable for famers on a budget and who cannot afford to insure more risks.

Crop Field to Floor – This type of insurance covers for standing crops at the farm through to harvest until the crop reaches the market. The policy usually covers for loss of the crop due to drought, hail, fire, windstorm, excessive rain, uncontrollable pests, and diseases when either the crops is still growing, being harvested or in storage or in transit to the market place. You can also customize the policy to cover downgrading of quality of the crop as a result of the insured risks.

Weather Index Insurance – This is a fairly new type of insurance in Zimbabwe. It deals with the risk of adversely changing climate trends. It is an index based insurance and covers losses to the crops occurring due to varying weather conditions such as temperature, wind speed, rainfall, humidity etc. This policy usually covers diminished yield/output due to deviation from optimum weather requirements for crops within a specific geographical location and specific time period.

Needs differ – As a famer in a cold area you might need crop insurance that covers for frost more than a famer in a hotter area. A farmer who has irrigation is not much interested in weather index insurance than a farmer who does not have irrigation because of their better control of the water requirements of the crop.  The logic here is that there is no point getting insurance that is not covering the risk that you need the most protection from. It is therefore advisable to find a flexible insurer capable of tailor making your policy to your needs rather than going for a one size fits all.

Negotiation is always open - One of my bosses, from Nigeria, told me that the difference between Zimbabweans and Nigerians was that Nigerians are always looking for a bargain. Nigerians can negotiate and get a discount everywhere they go. If you don’t have the same attitude when shopping for insurance you are either going to be forced to wear an oversized insurance policy or an undersized insurance policy. You should guard your interests, cut costs and maximize your profits as a farmer. If you are paying more than you should for your famers insurance it’s your own fault.

The reason for purchasing insurance is to be protected from your greatest risks, if those risks are not protected then the true purpose of insurance falls off. It does not matter what type of insurance you are shopping for, listing your needs, and risks and doing your homework before you made the final purchase is critical. If you are not sure it is better to look for an insurance professional to help you made a decision. There are many options including insurance consultants, agents, aggregators and brokers to help you make the best decisions.

WHAT TO DO IF YOU CAN NOLONGER AFFORD TO PAY YOUR LIFE ASSURANCE PREMIUMS

Not everyone is finding it easy to make ends meet in Zimbabwe. NO matter how hard you work sometimes money is not as easy to get. It is always a good idea to cut on spending if this is the case. It’s a pity that insurance is one of those expenses that fall victim when we have to cut our spending. I will have to confess that when I changed jobs and got a pay cut I went and cancelled my life assurance policy because I felt I could no longer afford it. But the reasons I had taken life assurance had not fallen off. The need for life assurance is still there. I still need my family to be taken care of if something unfortunate happens to me. Your family too are likely to get into a financial emergency if you pass on especially if you have mortgages and loans that need to be paid and living expenses that you were contributing.

I regretted my move to cancel my policy when I spoke to a Financial Advisor from one of the top  life assurance companies in Zimbabwe who told me I had plenty of options, even when I could no longer afford to pay premiums, to keep my policy alive before I could cancel it. So before you think of making the same mistake I made consider the following;

1.Getting a premium holiday.
So it is part of life to cut on spending at some point. However, because life insurance companies (only the good ones) have a provision contained in some of their policies that allows you to cease premium payments in the event of economic hardship, you do not have to worry about canceling your life assurance policy. The period could be anything from a month to a year! If you are wondering how they will make up for the premium you did not pay in that period, I did too!  The life assurance company can simply ask you to pay for the months you skipped when things get better or they could just collect premiums from the accumulated cash value within the policy during this period. So a premium holiday can just allow you to find alternatives on when and how you are going to continue paying your premiums without necessarily discontinuing your policy.

2. Pay premiums Annually or Termly
Before I changed jobs I had the capacity to pay premiums for my life assurance for the whole year from one month’s salary but I still chose to pay on a monthly basis. This is because I wasn’t aware of what was in the future. Had I paid for the whole year, I was simply going to relax and not run to cancel my policy when my pay was cut. My uncle Teddy is a farmer and he makes budgets for his whole year after selling his produce and that is usually once a year. It can be difficult to stretch the money he gets as single payout and pay it monthly. So instead of canceling your policy when you can no longer pay your premiums, why not pay your life assurance premiums in advance for a whole year or a term when you still can?

3. Reduce the cover
Most insurance companies will allow you to reduce the value of your life assurance if you can no longer afford high premiums. This will allow for the reduction of the premiums without completely losing the policy. If for example you were paying $20 per month for a $20,000 benefit, you can reduce the benefit to $5000 and start paying $5 per month.

4. Pay Premiums with Cash-Back
Good life assurance companies in Zimbabwe all offer cash back on the policies. This is more of a celebration that you are still alive and it is usually paid once in 5 or so years. An insurance company might give you back the premiums you paid for  6 months or more. This means that instead of spending it you can put it back into your policy and relieve yourself from paying premiums for some months. This is more like a businessperson putting back his profits into his business to grow it and reduce the impact of his expences.
Ask for help

If all the tips cannot help you, and you still cannot find a way out, maybe you have to take a step and ask for help. You could have people in your circle you go out with every single weekend, if they are your true friends and you ask them nicely they can pay your premiums for you whist you are in that financial emergency. This is a true form of friendship, love and responsibility.

Like any other insurance policy make sure you read and understand the policy that you have. The policy I had allowed me to skip 6 months without paying premiums but because I thought I know it all, I never read it and it cost me. So stop before you make a decision and get adequate knowledge which will help you to make thorough decisions. However, if you are really in financial stress you can always let your policy lapse and buy a new one when things get better. Do not put yourself under too much pressure, but if there’s less important things you can forgo to keep your policy running do it!

Is iGo membership worth it?

After writing an article on medical aid I have had a lot of questions in my head about the health and wellness solution called iGo which is powered by Cimas. So today I take a look at the iGo membership as the first of its kind in Zimbabwe. In this review I will dicuss how the membership can be useful to people in making savings that encourage achieving optimal health through behavioural changes in nutrition,physical fitness and overall stress reduction.

iGo overview
The iGo membership offer is $45 per month for Cimas members under the Healthguard deluxe, Medexe, Private Hospital and Classic private hospital packages.

What is included when you sign up for iGo?
The iGo membership features a variety of healthy meals discounts,spa massage discounts, discounts on luxury manicures, pedicures and facials, free gym membership and movie house discounts for only $45 per month.

On the healthy meals side you will get discounts of 25% off all healthy meals at four of the best franchise restaurants in Zimbabwe (including Ocean Basket, Simply Asia, Newscafe and Magg & Bean). There is also a reduced rate and/or complimentary beverages at these restaurants for groups of four or more people. Orders above $7 at Smooch will also attract a 25% discount.

On the fitness side, the membership offers free gym membership at Pro Fitness Health Club gym. This includes a free initial assessment, 6 week progress assessments, educational talks and discounted rates for personal trainers, nutritionists and biokineticists.

On the entertainment side the iGo membership also offers a 50% discount on all movies between Monday and Thursday at Ster Kinekor. You also get a discount of 30% off all massages at The Skin Spa. Offers of $28 for luxury manicures, $30 for luxury pedicures and $53 for luxury facials are available at the same spa.

Who is this service for?
Cimas is obviously targeting high earners with this service. Considering that you need to have a medical aid package that pays atleast $118 per person for a single month to quality for membership of iGo, it is clear that this is not for everyone. Members also get access to deals at a gym, restaurants, movie houses and spa that are located at upmarket shopping areas which is another indication that this is product for people who either reside in the Northen suburbs or frequent them.

Is it worth it
You have a gym membership and you normally pay $100 a month without assements (that cost about $30),educational talks (that cost $10) and personal training. If you become a iGo member you get free gym membership at Pro fitness health club gym which is one of the leading gyms in Zimbabwe. You also get free initial assessments, 6 weeks progress assessment and discounted rates for personal trainers. That means you make a saving of $100 or more on your gym membership.

If you are a regular at one of the restaurants with discount deals, that is Ocean basket,Simply Asia, Newscafe and Mugg & Bean, and you spend atleast $50 every weekend when you eat out it means you will get a saving of $12.50 each time you eat out.
You also potentially save on the money you were going to spend on beverages as the iGo deal includes complimentary beverages from these restaurants.
That means every month you can save $50 or more on your normal eating out bill. That is enough to pay for a month's membership of iGo. And getting 25% off a $20 order at smooch would get you $5 saving. Decent!

If like me you enjoy the half price Tuesday at Ster Kinekor you are definitely going to love iGo membership. For me half price means more snacks. And with the iGo membership you can pay half  on anyday between Monday and Thursday. A normal massage at The Skin Spa costs $80. Because you get a 30% discount it means you save $24.

Verdict
Combining the savings from all the discounts and freebies on all the iGo deals justifies the $45 for the membership.

My take
As I expected the iGo membership gives good returns if the benefits are fully used. If I was making the decision to get the membership card I would look at the likelihood of me using more than a few deals and benefits available regulary. If I do then it is totally worth it. But if I am going to use just one of the value deals then it is not worth it.  I think they should have added atleast one weekend day on the Ster Kinekor deal. I also have a bit of a problem with nutrition part particulary the choice of restaurants. If you go through social media reviews of a few of the restaurants you will find their food has been found on the wrong side a couple of times. I would have loved to see atleast one restaurant that serves traditional food, which is considered healthy.

Conclusion
In terms of monetary value the iGo membership is a very welcome and innovative service. It surely encourages good nutrition, fitness and stress relief. Credit to Cimas for such an innovative product.

10 Weird Types of Insurance You Didn't Even Know About

If you read Wise Bread frequently, you know how important insurance is as part of a sensible financial plan. It makes sense to insure your home, your car, and carry health insurance. But over the years, insurance companies have developed policies to protect customers against all kinds of trouble, ranging from
natural disasters to identity theft,
and getting thunked by a foul ball at a baseball game.

Here are 10 of the most unique
insurance policies we've come
across:
1. Hole-in-One Prize Insurance
Have you ever seen a charity golf
tournament where they gave away a car or cash prize to anyone who got a hole in one? Tournament organizers usually protect themselves with insurance policies to cover the cost of prizes, just in case someone actually gets lucky.
Prize indemnification is its own
industry, and is often used for
similar promotions, like half-court
shot contests in basketball, or field
goal contests in football. Premiums for these insurance policies are relatively cheap due to the low odds of winning. One company, InsureEvents, says it has insured a $1 million hole-in-one contest for a mere $300.

2. Athlete "Loss of Value Insurance" During the recent NFL Draft, several players reportedly collected payouts from insurance policies after they weren't drafted as early as they had hoped. ESPN reported that Jaylon Smith, a linebacker from Notre Dame,
received $900,000 from such a policy after slipping to the 34th pick in the draft due to concerns over a knee injury. He could have received as much as $5 million had he been drafted higher.

3. Body Part Insurance
We all want to cover our body parts. But for some people, it's not just about clothes. Many people — often famous athletes or entertainers —will insure certain body parts that
they depend on for their livelihood. Rocker Bruce Springsteen has reportedly insured his voice with Lloyds of London for a cool $6million. Singer Dolly Parton had her
ample bosom insured for $300,000 each. And when football player Troy Polamalu signed a deal to endorse Head & Shoulders shampoo, Procter and Gamble took out a $1 million policy on his flowing mane. There are reports of policies for taste buds, fingers, buttocks, and nearly every other body part you can think of.

4. Riot Insurance
In 2010, the country of Thailand was afraid of losing tourism dollars due to political upheaval and protests. So it offered up to $10,000 to anyone experiencing loss or damage due to the turmoil. It also offered tourists up to $100 per day for travel delays caused by demonstrations.

5. Insurance for a "Change of
Heart"
It's a real bummer if your family
spends thousands on a wedding,
only to have you break off the
engagement. To protect against this possibility of cold feet, a company called Wedsure offers insurance that includes coverage for a "change of heart." In other words, you get your money back if the bride and groom decide to go their separate ways. There are a few catches, though. The coverage only applies to "innocent
financiers," such as the bride or
groom's parents, not the bride and
groom themselves. And the wedding must be cancelled at least 365 days in advance of the scheduled date.

6. Multiple Birth Insurance
Having twins is exciting, but it's also expensive. In Great Britain, it's possible to hedge against the
possibility of having more than one baby by buying special insurance. In essence, parents can buy insurance at the early stage of a pregnancy and then receive a lump sum of cash if they have a multiple birth. This insurance might make sense if you have a family history of twins, or if you've already had a multiple birth and can't fathom adding two or more children.

7. Insurance Against Death by
Laughter
Lloyd's of London is known for
covering a wide range of things, but the funniest might be the effort to insure a comedy troupe in the event that an audience member died from laughter. According to the BBC, this comedy troupe was so confident in
its humor that it asked Lloyd's for
insurance just in case the group was fatally funny.

8. "Essential Employee" Insurance
Imagine being so valued by your
employer that the company actually takes out an insurance policy in case you leave or pass away. Often called "key person" or "keyman" insurance, this policy offers a lump sum to cover costs like loss of business or training of successors. Usually, these insurance policies are designed to
cover the loss of someone who plays a key role in generating profits, or who has a unique skill set.

9. Lottery Insurance — For
Companies
Imagine that you own a company
and a large group of your employees entered a lottery pool, and won. You'd be excited for them, right? Well, that excitement might not last if half of your staff decides to retire on the spot. Lloyd's of London is
among the companies that offers
insurance for such a scenario, to
cover loss of productivity and the
hiring of temps and new staff.

10. Kidnapping and Ransom
Insurance
It sounds like something out of a
movie, but it's an actual thing. You
can protect yourself if you've been
kidnapped, and get reimbursed for any ransom money and expenses once you're freed. Truthfully, these policies are geared more toward businesses with high-profile employees. But individuals can get policies as well. Traveler's Insurance calls this policy a "must-have," and even produced a two-minute video about it.

What's the weirdest insurance policy you've ever heard of?

Article by Tim Lemke and originaly appeared on Wisebread

Securing your gadgets with Gadgets insurance

Gadgets have become so much of a necessity for everyone these days. We can not do without our valuable items such as cameras, laptops, tablets and most importantly our smartphones. It is very normal to find a person moving around with gadgets with values in excess of USD$1,000. A lot of us do not realise the value of the gadgets that we carry around with us on a daily basis. When we do realise this value it is logical to find a way to protect this value and gadgets insurance does that very well.

My friends always make fun of how I had one of my phones stolen barely a week after buying it. I know a lot more people who have that exact story and some who had their's broken during unboxing. The cost and thought of replacing my phone made me cringe. I never took insurance for my gadgets seriously and because of that I had to go several weeks without a smartphone. You can only imagition how much I got left behind in those weeks I spent without a smartphone. It was at that point that I realized the need to insure my gadgets.

What does gadgets insurance cover?
Gadgets insurance covers portable electronic devices such as mobile phones, tablets, portable music players, portable gaming consoles, laptops and cameras against accidental damage or theft. Because terms and conditions might vary between different companies it is key to read the fine print when choosing which company to go with. One company might not have theft as part of their standard gadgets insurance cover and you could be forced to pay more for that cover for example.As always, just like with other types of insurance, make sure you are aware of the exclusions on the policy for instance some insurance companies might exlude theft as a result of leaving unattended gadgets in public areas. A good example is leaving your phone on a bar counter unattended because it is insured. This will just invalidate your claim if the phone is stolen. It is also important to check applicable excesses on the policy. Different causes of loss could have different applicable excesses.

Laptops
Laptops are a big part of our lives whether you are a student or a business person. This is why insuring your laptop is a must.
Because spilling liquids on laptops is quite common ask if your cover extends to accidental damage caused by liquids. Also because some insurance companies also look to minimize their losses they put a limit on the value of laptops you can insure. So if you are a man of great tech-sense and own a Stealth Macbook pro you'll probably want to check limits on your policy. Some companies will also exclude other types of damages such as fallen keys or cracked screens so make sure you understand what is included and what is not. However make sure you always have a back-up for all your important data because as much as insurance can replace your laptop it can not replace your data.

Mobile phones
I am one of the many people who cannot live without their phones. My smartphone is so important in all aspects of my life including spirituality, family, business and entertainment. Just like laptops, checking what your policy covers against is important. Getting a policy that does not cover for theft is pointless considering its one of the covers you need. Also check to what extent they cover accidental damages. Some companies will not cover accidental damages within the guarantee period of the phone. Also request to have your valuable phone accessories such as your smart watches on cover.

Portable music or video players
Joggers in streets with music players strapped on their arms are a common site if you are an early bird like me. Ipods are really attractive devices for thieves and they can easily be lost. Like the other devices, check if your insurance company covers for theft or damage outside the guanrantee period.

Camera
Cameras are journalists best friend. For them they are not just for capturing moments but for adding dollar to the pocket. They are equally important for the rest of us as they capture moments we can never re-live. However they can easily be damaged and they are attractive for thieves as well. For the journalist it is important to check if damages caused by riots is covered under your policy. Damages caused by political riots are usually excluded. Also check if your accesesories such as extra lences and stands are covered under your camera or they covered separately.

It is worth noting that insurance companies in Zimbabwe are not moving quick enough to provide this type of insurance. Only a few companies provide this cover with the rest still reluctant and deciding to be left behind. I would be pleased to see more companies roll out this service soon.

Know your insurer

Picking an insurance company can
be very difficult especially considering the financial crisis of the early 2000s. Since dollarization a number of
insurance companies have either
been suspended or had their
licenses cancelled by the regulator of the insurance sector IPEC (Insurance and Pensions Commission). However you
should not panic because of this.
Getting knowledge on your insurance company can save you from insuring with a sinking insurance company. The
managing director of financial services aggregator zimselector.com Mr Luke Ngerume says that a lot of people make a mistake of over trusting their brokers and fail to understand who they are really insured with. It is
important to note that brokers do
not carry risk and therefore are not the ones who pay claims. If they choose a wrong company for you, it is you who suffers the losses. There are various ways to help you consider which insurance company to use or reject if
a broker chooses for you.

Capitalisation
Just like banks, insurance companies are required by the regulator IPEC to have a minimum level of capital to operate. These requirements are in place to make sure insurance companies do not become insolvent. The regulator monitors assets that are readily available to meet claims by conducting
offsite surveillance and onsite.Insurance companies that are
found to be non-compliant are either suspended from accepting new business or have their licence cancelled. IPEC
provides quarterly reports (which
can be found on ipec.co.zw ) with this information which you can use when choosing an insurance company. It is wise to choose a company that has capital levels above the minimum requirement and avoid those with capital lower
than the required. Although it might seem tedious and unnecessary you should make it your priority to check this information before making a
choice on an insurance company. If you are already insured you can also check your current insurer to enable you to prepare for renewal or transfer of your policies to another company.

Quality ratings
If going through reports to check capitalisation of insurance companies is a huge task for you, quality ratings will simplify it. Agencies such as the Global Rating agency use various methods to assess the claims paying ability of insurance companies. They
give an independent opinion of a company’s ability to meet policyholders obligations based on various factors such as the country and industry environment, business profile, competitive positioning, product distribution , earnings diversification and profitability to mention a few.
However not all insurance companies subject themselves to these rating agencies. A company that does though shows their commitment to providing
assurance for their polyholders. Mr David Muchakagara, General
Manager at Old Mutual Insurance
Company says they pride themselves for having a Global Rating Agency Claims Paying
Ability of A+ which is the highest
rating. A requirement by IPEC to
have all companies to be rated would be a good move for the protection of policyholders.

Reputation of the company
I was Facebook the other day and I
was saddened by comments I saw on one the most popular insurance company’s page. From people saying the insurance
company is a joke to people
pleading to the regulator to investigate the company, it was just disheartening. You MUST AVOID a company with a reputation of not paying claims.
Before choosing your insurance company, take time to investigate them. Go to their social media pages. Ask colleagues. Ask friends. You can even ask IPEC or the Insurance Council of Zimbabwe about the number of complaints they get about certain companies.
GO for the companies that have a
good record.

Proximity, Availability and Flexibility
Although we now have various
methods of distribution of insurance products,it is dangerous not to know the location of your insurance company. I had a
friend who took insurance with an
insurance agent and only discovered after an accident that his premium payment never reached the insurance company.
It is best to make sure that your
agent or broker is committed to
giving your risk to capable hands for example zimselector.com promises to work only with capable insurers.Knowing
where your insurance company is
located or even their contacts will help you confirm if you are really covered. If you are an individual or you run a business, an insurance company
should be ready and available to meet with you to explain their covers and promises.

Premiums charges
The competition in the insurance
industry has led to a few company chargingpremiums that are not cost effective. You as a policyholder should make an
effort to know the required minimum premium for certain classes of insurance. If an insurance company charges less it means they will probably
fail to honour their obligations if you incur a loss. You ought to know if your insurer is charging cost effective premiums. No matter how big you assume your
insurance company is, take time to
know and understand them. Do not let a lion babysit your antelopes. If you trust
the wrong insurance company with
your assets you are in for a very big disappointment.

Easy way to shop for insurance

I had just gotten confirmation from my bank that they were going to offer me a mortgage facility for the house I had picked out. I couldn't believe that I was finally getting to own a house. The mortgage officer called me to his office to have a look at the mortgage facility offer letter. The offer letter had a whole section on insurance and as a insurance professional myself I was excited about this. The bank required me to have home owners comprehensive insurance. I also had my car insurance expiring around the same time. I had hoped to get a discount on having both my car and house insured by the same company. Naturally I always look at companies I had previous associations with to quote me on my insurance but the mortgage officer convinced me to take a look at a few more insurance companies.


I complied with the mortgage officers advice and decided to grab a few quotes. It was a hassle making calls to insurance companies and giving them the same information again and again. I will not even begin to talk about the follow up questions from all these companies. Comparing the quotes was an even more tedious task even for a guy with an insurance background like me. The language on what is covered in the policies can be really difficult to understand. I was also confused on whether I should take the lower quotes or the higher ones. For me going with the lower quotes is always tricky because I would be compelled to research more about the company. I would have  to look if the company pays claims on time, are they well capitalised or are they part of associations within the industry. That means I would take even more time to make my decision.




After getting a few quotes though, I must say I was really shocked by how reasonable it is to insure a house. For a $50,000 house the quotes I got were ranging from $75 to $100 per year. In real terms that means I was going to pay less than 30 cents per day to protect a $50,000 house!! That to me is like trading an ant for an elephant.




As for my car insurance which was about to expire, the easier way was just to go and renew it with my current insurer. My most trusted uncle had always discouraged this practise. He always told me to shop for my insurance every year. But the thought of making calls and giving information about my car every time it expired was consuming. I asked myself why is it so difficult to shop for insurance. Firstly, we do not always have the time. Obviously we all need to spend our time on this considering how important insurance is.  Second, we are no insurance gurus. Sometimes even for an insurance professional it can be difficult to understand if you are covered completely by your insurance. Lastly, comparing quotes is very difficult because insurance covers are sometimes different with different
insurance companies.


After spending so much time on this, I looked to the internet for answers. It turns out we have a website in Zimbabwe that helps you compare and shop for insurance! Unlike the long phone calls I had spend the whole day making (some of which wasted my airtime) I just entered my details onto an online form they provided on the website and I instantly got quotes from the most trusted brands in Zimbabwe some of which my mortgage officer had recommended. The lowest quote for my house was $63! I was shocked! On top of that the difference in covers were clearly stated. It took me a minute to review the covers and a simple click to accept the quote and make my payment had me covered instantly.


Why you should use an online aggregator too
Its not like I had never heard of online comparison sites, but to be honest I didn't really think they works . For example I was sceptical  about buying insurance without any physical interaction. However I realised that although online aggregators initiate a relationship online, they are always available for any customer services issues that might arise. The only problem I have though is that they do not assist in the case of a claims.
Despite that,  I learned that a good insurance online aggregator  provides a lot advantages that include:

• Less hassle. Not only do they make the price of insurance more transparent  but they also help you compare the quotes. You only need a few minutes to browse through a number of quotes from various insurance companies
• Better price. I had assumed that because the online aggregators get commission for selling insurance it would push the price for insurance up. However this is not the case as they do not charge you for using their service. Their services are completely free! I was chuffed by zimseletor.com's promise to find the best price for my insurance.
• Peace of mind. I liked how zimseletor.com promises to help you make an informed choice. Knowing you can make an insurance transaction from anywhere and at anytime really eases the mind.

I’ve tried a couple of ways to shop for insurance including agents and going direct but my experience with zimseletor.com was the best one yet. I would love to hear about your experienies too. How do you shop for insurance and what do you love or hate about that experience?