By James Muonwa
THE scourge of insurance fraud poses a serious threat to the economy by undermining trust in financial services institutions, affecting genuine policyholders, the courts have said.
The National Prosecuting Authority of Zimbabwe (NPAZ) said fake insurance claims compromise the integrity of the sector, which thrives on trust.
“Insurance fraud is not a victimless crime. It undermines trust in financial institutions and affects genuine policyholders,” said the NPAZ.
The NPAZ says it has come out to descend heavily on insurance fraudsters.
“The justice system will continue to impose tough penalties to deter such conduct,” added NPAZ
The warning by prosecutors comes following the jailing of a 40-year-old Zvishavane man, Promise Banda, who faked his daughter’s death in order to defraud Ecosure Insurance Company (Econet Wireless) of US$6,250 in death benefits.
The court heard that on July 29, 2025, Banda misrepresented to Ecosure Insurance Company that his daughter, “Chipo Enia Banda”, had passed away.
Prosecutors proved that the accused person forged a Child Health Card, changing details to create a fictitious dependent. He then used the forged document to acquire a burial order number 526/25 from the Zvishavane District Registrar’s Office.
The offender submitted the burial order and false claims online to Ecosure Insurance Company, seeking to fraudulently obtain US$6,250 in death benefits.
Following an investigation, authorities established that the supposed beneficiary did not exist and that the offender had acted intentionally to defraud the insurance firm.
The court found Banda guilty of fraud, noting that such schemes are deliberate attacks on financial institutions and erode public trust in insurance systems.
As a result, Banda was convicted of insurance fraud and sentenced to 18 months imprisonment, of which four months were suspended on condition of good behaviour. He will, therefore, serve an effective 14 months behind bars.