Insurance can be daunting for many consumers, between its legalities and complex policy terms, it is easy to overlook your rights. Tapiwa Mogwera, a seasoned legal and compliance professional at Chartered Insurance Brokers, is on a mission to change that. With a legal background and years of experience within the insurance sector, she offers a practical lens on how consumers can better protect themselves and why it is so important to do so.
Tapiwa holds a Bachelor of Laws Degree from the University of Botswana, with additional certifications in Compliance, Anti-Money Laundering, Data Protection, and Risk Management. Her journey began in the legal field as a practicing attorney, but a desire to pivot into corporate law led her into the insurance sector.
“I always saw myself as a corporate lawyer, though I had no specific industry in mind,” Tapiwa reflects. “An opportunity presented itself in insurance, and I embraced it. I started out as a Legal and Compliance Officer at Chartered Insurance Brokers and worked my way into a management role.”
What Consumers Need to Know
When it comes to insurance, most individuals only think about their policies when it is time to submit a claim. Unfortunately, this is also when confusion, unmet expectations, and disappointment often occur. The reality is that understanding your rights as a policyholder is a necessity. This is precisely why Botswana’s Policyholder Protection Rules (PPRs) were introduced: to serve as a safeguard for consumers navigating the insurance space.
“The primary aim is to promote transparency and fairness,” Tapiwa explains. “Consumers must have access to sufficient information to make informed decisions about the policies they purchase. At the same time, providers must refrain from engaging in improper practices.”
Here are some of the core protections you are entitled to under the Policyholder Protection Rules:
• Full Disclosure: Firstly, the service provider is obliged to disclose to the consumer’s contact information of the service provider, contractual terms and conditions found in the policy and of any existing or potential conflicts of interest. The service provider must also inform the consumer of their Complaints Policy.
• Consequences of misrepresentation: The service provider is responsible for advising consumers of the consequences of them failing to disclose material information or providing false information such as, rejection of claims or criminal charges.
• Data Protection: The service provider must have measures in place to ensure customer information is safeguarded as well as to inform the customer of their data privacy policies. This right has been further crystalized by the Data Protection Act, 2024.
• Cooling off Period: The consumer is given the right to cancel their policy within 30 days of receipt of their policy document and receive a refund of the premium paid if they so wish on condition that no benefit or claim has been paid. This is known as the “cooling off period”.
• Signing of Documents: The consumer is required to fully complete an application form and sign; they cannot be requested to sign a blank or incomplete form. This is to avoid having the service provider include any information that is incorrect or hasn’t been agreed to with the consumer.
The rules provide instances where a policy will be deemed void (invalid), such as:
o When the policy provides that a consumer may undergo a lie detector test in processing a claim.
o Where the only way of resolving disputes is through arbitration; and
o Where it states that a policy may be rejected because a premium was not paid on the due date. The Insurance Industry Act provides a grace period of 30 days, in other words, your insurance policy will remain effective for 30 days after the due date of the premium and thus a claim can be submitted within this period and the insurer cannot use the unpaid premium as a reason for rejection. (See section 56(1) of the Act).
• Freedom of Choice: The service provider is required to inform the consumer of its right to free choice in instances where they are required to avail a policy as security. The right to free choice allows the consumer in certain circumstances to elect if they wish to secure a policy for that purposes or cede an existing policy, insurance entities such policy is to be obtained from as well as other aspects of the policy.
• Fair Assessments: When establishing a policyholder’s risk profile, a service provider is prohibited from use of unjustifiably discriminatory factors such a race or creed.
• Waiver of Rights: The Insurance service provider is prohibited from requesting or convincing the consumer to waive any and all of the rights and protections its afforded under these Rules.
What To Do If You Are Aggrieved
If you feel that your rights as a consumer have been violated, Tapiwa encourages you to first make use of the insurance provider’s internal complaints process. If your issue is not resolved to your satisfaction, you are entitled to escalate it to the Non-Bank Financial Institutions Regulatory Authority.
“There is a negative perception of the insurance industry, often fueled by lack of transparency or failure by some service providers to comply with the Rules,” Tapiwa says. “At the same time, some consumers are too quick to sign off on policies without fully understanding the terms.”
Her advice? Take time to review your policy document, ask questions, and consult your broker.
The Value of a Trusted Insurance Broker
Tapiwa is a firm believer in the value of having a credible insurance broker on your side. “As brokers, we represent the interests of the consumer. Our job is to ensure you find the most suitable coverage from the most appropriate provider. We offer expert guidance, support during the claims process, and make sure your policies remain valid and relevant to your changing needs.”
For support, guidance, or to discuss your insurance needs, Tapiwa encourages consumers to reach out to Chartered Insurance Brokers.
Contact Information
Gaborone Office
Unit 17, Kgale Court 126 – GIFP
+267 316 3881
Francistown Office Plot 3964, Minestone
+267 241 2800
info@cib-bw.com
