Insurance is a means of protection from financial loss, it is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. This means that whatever value you insure your asset for should be sufficient to enable you to replace it or at the very least purchase an asset of the same level as the one you had. However, the current economic conditions have presented challenges such as inflation and price speculation. In light of this, Zimnat then introduced the option to insure ones assets in US dollars in an effort to make life better for its clients.
In the event of a loss where one has paid their premiums in US dollars the Insurance Company has various options to restore you to your former position. The options include repairing damaged assets, replacing the damaged asset or giving the client cash in lieu of the damages (which will be in US dollars).
Basing values in US dollars hedges against fluctuations in the sum insured. The fact that the US dollar is a relatively stable currency means that the premium one pays will not fluctuate and one can plan for their future payments.
Zimnat General Insurance offers all its short term insurance in US dollar denominations however will continue to offer policies denominated in RTGS value for those who have no access to hard currency. However, where premiums have been paid from an RTGS account, the sums insured will need to be regularly monitored to mitigate against the adverse effects of inflationary pressures in the business environment that lead to underinsurance.
Zimnat, which is one of the country’s leading insurance and financial services companies, has been a leading voice in protecting the assets of those who insure with them. This is in line with its purpose of making life better.
Call 086 7700 4952 or email directbusiness@zimnat.co.zw to find out more or purchase a US dollars policy.
