Old Mutual loses $40 000 to insurance broker

A 39-YEAR-OLD insurance broker yesterday appeared at the Harare Magistrates’ Court, facing charges of defrauding Old Mutual of over $40 000 meant for vehicle insurance.

BY DESMOND CHINGARANDE

Francis Motsi was not asked to plead, when he appeared before Harare magistratem Josephine Sande, who remanded him to October 24 on $300 bail.

It is the State case that in 2000, Motsi registered as an insurance broker with the Commissioner of Insurance operating as Hearview Insurance Brokers (Pvt) Ltd.

In the same year, Motsi entered into an agreement with Old Mutual to operate as its agent.

In terms of the agreement, Motsi was to hold in trust money he would have received from the company’s clients for 30 days before remitting it.

Motsi later entered into an agreement with ZimTrade, where Old Mutual would provide insurance for its motor vehicles and electronic equipment.

The State alleges between January and December last year, Motsi received $41 220 from ZimTrade for the purpose of registering its vehicle fleet and electronic equipment under comprehensive insurance cover.

He allegedly failed to remit the funds to Old Mutual.

It is alleged Motsi instead registered the said property under third party cover.

The offence came to light when Old Mutual received a claim from ZimTrade, resulting in a report being made to the police.

The State alleges Old Mutual suffered a prejudice of $41 220.

Linda Gadzikwa appeared for the State.

Old Mutual loses $40 000 to insurance broker : NewsDay Zimbabwe.