The Namibia Financial Institutions Supervisory Authority (NAMFISA) has identified the long-term insurance industry as the top source of consumer complaints for 2023, with 247 lodged grievances.
Microlenders followed closely with 165 complaints, while the short-term insurance industry ranked third with 122 complaints and pension funds.
Despite a reduction in complaints for some sectors compared to 2022, these four industries dominated the complaint landscape, together accounting for 94% of all reported issues.
“The highest number of complaints (247) was lodged against the long-term insurance industry, followed by 165 complaints against the microlending industry, 122 against the short-term insurance industry, 116 against the pension funds industry, 39 against the medical aid funds industry, and two against the capital markets industry,” said NAMFISA in its 2024 annual report.
NAMFISA’s efforts led to a significant rise in compensation, with N$14.7 million paid out to 172 complainants by the end of the year.
“The highest amount, totalling N$12.1 million, was recovered from the pension funds industry, followed by N$1.7 million from the long-term insurance industry, N$514,410 from the short-term insurance industry, N$267,792 from the microlending and credit agreement industry, and N$99, 258 from the medical aid funds industry,” said NAMFISA.
The Authority was able to resolve 91.0% of the 691 received complaints which represents a decrease in the resolution rate, compared with 94.9% for resolved complaints recorded in 2022.
“The remaining 9.0% was pending as at 31 December 2023 and therefore carried over to 2024 compared with 94.9% for resolved complaints recorded in 2021,” said the Authority.
Moreover, the remaining 6.6% was pending as of 31 December 2022 and therefore carried over to 2023.
Meanwhile, according to the authority for long-term insurance companies, common grievances include the repudiation of funeral benefit claims, non-payment of death benefit claims, lapsed policies, fraudulent policies, and non-cancellation of contracts.
In the microlending and credit agreement sector, NAMFISA noted that consumers frequently report overcharging of interest, illegal deductions, non-payment of refunds, extension of loan periods, retention of personal documents, and services that are either not delivered or unacceptable.
Pension funds face complaints about non-payment of pension benefits and death benefits, disputes over the accuracy of received amounts, non-payment of retirement annuities, and lack of information provision.
Short-term insurance grievances included repudiation of motor vehicle accident claims, disputes regarding these claims, repudiation of general insurance claims, repudiation of legal representation claims, and repudiation of property insurance or conveyance claims.
