Opinion
Inflation and Insurance
On account of the dollar crisis, inflation (exacerbated partly due to money printing) and ban on imports imposed by the government, the prices of say vehicles for example have doubled, tripled and even quadrupled. The insured value has to be raised to the current market value and the Insurance Companies have to re-evaluate the new premium to match the present value of these vehicles.
Therefore, the insurance policies of these vehicles have to be revised accordingly for it will then be a win- win situation for both the Insurer and the insured.
Over to the Insurance Companies and the insured to do the needful as otherwise owners of vehicles will lose in the event of a claim as the vehicles are under- insured at present.
Mohamed Zahran Colombo