Zimbabwe court gives brokers a break
Insurance brokers in Zimbabwe are celebrating the fact that the country still has a judicial system which functions – at least when politics doesn’t intrude.
Last week the Zimbabwe Supreme Court nullified regulations imposed in 2005 that required all brokers to re-register with the Government so their solvency and practices could be monitored. Failure to comply meant automatic deregistration.
But the court says the regulation issued by Finance Minister Samuel Mumbengegwi – who oversees an inflation rate now estimated at 165,000% – is in violation of the country’s Insurance Act.
Mr Mumbengegwi maintained he had “unfettered power to prescribe anything that is necessary to be prescribed”.
But in its written judgement, the court said he “exceeded the power granted to him”.
“Parliament did not intend to grant power to the minister to alter the requirements for registration and de-registration of insurance brokers by setting additional qualifications for registration as well as requiring registered brokers to re-register on pain of de-registration.”
Last week the Zimbabwe Supreme Court nullified regulations imposed in 2005 that required all brokers to re-register with the Government so their solvency and practices could be monitored. Failure to comply meant automatic deregistration.
But the court says the regulation issued by Finance Minister Samuel Mumbengegwi – who oversees an inflation rate now estimated at 165,000% – is in violation of the country’s Insurance Act.
Mr Mumbengegwi maintained he had “unfettered power to prescribe anything that is necessary to be prescribed”.
But in its written judgement, the court said he “exceeded the power granted to him”.
“Parliament did not intend to grant power to the minister to alter the requirements for registration and de-registration of insurance brokers by setting additional qualifications for registration as well as requiring registered brokers to re-register on pain of de-registration.”