PIA PREPARES PAYMENT SCHEDULE FOR POLICY HOLDERS

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By BUUMBA CHIMBULU

THE Pensions and Insurance Authority (PIA) is currently compiling a schedule on how it will pay policy holders for the two insurance firms which were liquidated last year.

Focus Life Assurance Limited and A Plus Assurance Limited were placed under compulsory liquidation.

The insurance companies failed to meet the capital minimum requirements whose deadline was on October 31, 2017.

In 2015, Government signed Statutory Instrument (SI) no. 71 of 2015 to compel insurance companies increase their paid-up capital to the minimum of K20 million from K1 million.

Long-term and general insurers went up to K12 million and K10 million respectively from K1 million, while for brokers it stands at K100,000 from K50,000.

PIA deputy registrar, Titus Nkwale, said the schedule was expected to be completed by April 15, this year.

Mr Nkwale explained that the authority was aware that it had to pay claimants what was due to them.

He was speaking in an interview in Lusaka.

“The liquidation schedule will be ready by 15th April. It will show the road map on how we will liquidate it, sale off the assets and pay off the policy holders and other creditors.

“So after mid-April these statements will be public documents for inspection by the claimants themselves and whoever is interested. We should pay what is due to them so we are computing what we think we owe them,” Mr Nkwale said.

The liquidation schedule, Mr Nkwale said, would also estimate how much PIA would realise from the assets to be sold off.

“In fact there was an initial 60 day period which has elapsed where we invited policy holders to come and inspect their statements. “There was however a group of them which after and by law, they were late. But this does not mean we will throw them away, what it means is that they may be the last ones to be paid,” he said.

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