Insurance Payout: Man Cashes Out 15-Year Insurance Policy, Receives Less Than $1
Zimbabweans are outraged after 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: Chitungwiza Municipality reduced a worker’s US$5,000 salary arrears to just 8 cents, sparking public outcry about the country’s financial policies.
Zimnat’s Letter Explains “Adjusted Policy Value”
The Zimnat Life Assurance letter, shared on X (formerly Twitter) by journalist Zenzele Ndebele, outlined the currency changes the insurance company said had eroded the policy’s worth.
2009 Currency Conversion: In 2009, Zimbabwe shifted from Zimbabwean dollars (Z$) 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
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.
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.
Outraged citizens have taken to social media, expressing anger at the devaluation of the 15-year policy. Zimbabweans are sharing their frustration over a system that appears to strip away the value of their investments and hard-earned savings.
“Buying cattle and keeping them ekhaya is way better,” wrote @MafasigodoS. “This teapot nation is a joke.”
Another user, @HwangeExpress, was blunt, describing the outcome as “pure thievery.”
User @tigere02 posted, “This exposes serious flaws in government financial policies. A 15-year policy that pays out less than $1 isn’t just unfortunate; it’s explo1t@tive.”
Many are also exploring financial alternatives outside Zimbabwe. “It’s better to open an FNB non-resident account for savings and an Easy Equities USD account for investments in SA,” suggested @Bonganindlovu9.
For some, this case underscores what they see as a financial crisis in Zimbabwe. “Zim is just one big crime scene,” wrote @philllip_c.
Second Case of Devalued Payouts Raises Questions
The incident mirrors a recent case in which a former Chitungwiza Municipality worker, owed over US$5,000 in salary arrears, was eventually paid just 8 cents. That letter, shared online by human rights lawyer Obey Shava, detailed a similar series of currency conversions that drastically reduced the worker’s payment, with entrepreneur Kuda Musasiwa tweeting, “A worker owed $5,156.95 USD ends up with less than 0.05 cents USD. This is robbery.”
With back-to-back cases of savings and salaries devalued to cents, Zimbabweans are calling for reform and questioning whether their own funds are safe in a financial system plagued by constant currency shifts.
