Man Gets US$1 From 15-year Insurance Policy
A man who contributed to a 15-year insurance policy was paid less than US$1. Zimnat Life Assurance issued the payout after saying that currency changes had severely devalued his savings to just ZWG 4.85 (approximately 20 cents).
This incident follows a similar case where the Chitungwiza Municipality reduced a worker’s US$5,000 salary arrears to just 8 cents, sparking public outcry about the country’s financial policies.
The Zimnat Life Assurance letter, shared on X (formerly Twitter) by journalist Zenzele Ndebele, outlined the currency changes the insurance company said had eroded the policy’s worth.
2009 Currency Conversion: In 2009, Zimbabwe shifted from Zimbabwean dollars (Z$) to US dollars (US$). The letter explained, “Your policy’s value was adjusted to reflect the changes in law.” Zimnat confirmed that the conversion was reviewed by an independent actuary and approved by the Insurance and Pensions Commission (IPEC).
Man Gets US$1 From 15-year Insurance Policy
2019 Reintroduction of the Zimbabwean Dollar: “In June 2019, the Zimbabwean dollar (ZWL) was reintroduced at an initial rate of 1:1 with the US dollar,” the letter continued. This rate did not hold, and the ZWL soon lost value, significantly devaluing policy balances.
2024 Zimbabwe Gold Currency: This year, the government introduced a new gold-backed currency, the Zimbabwe Gold (ZWG), further converting policy balances at a rate of 1 ZWG = 2,498.7242 ZWL. As a result, the policyholder’s ZWL balance of 12,118.81 was converted to just 4.85 ZWG, equivalent to less than US$1 as of April 2024.
Municipality Converts Worker's US$5k Salary Arrears to 2 ZiG
The letter concluded by acknowledging that these conversions had reduced the policy’s payout to almost nothing, leading Zimbabweans to question the security of their own savings.
