Trouble at Prime Insurance!

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Weeks after Reserve Bank of Malawi (RBM) announced that it will take over administration of Prime Insurance, sheriffs have impounded property at the insurance company’s Mzuzu branch over an outstanding balance to its clients.

Confirming the development, Judiciary spokesperson Mlenga Mvula said the company owes K6.4 million to two people who suffered injuries and were yet to get their insurance.

Mlenga Mvula

Mlenga Mvula: Confirmed the development.

The sheriffs have since confiscated office equipment such as printers, computers, and office chairs to sort the two customers for the company.

Earlier this month, RBM announced that it was to take over management of the company fearing that it may be declared insolvent due to financial constraints that the company was failing to deal with.

However, Prime Insurance challenged the central bank’s decision by obtaining a court injunction restraining the move.

Established on March 31, 1996, Prime Insurance commenced underwriting of insurance business and its policy was slated to purchase maximum re-insurance protection at minimum cost.

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4 Comments

  1. It is possible there was a cashgate of some kind which led to the financial mess as Prime Insurance. This may explain why the company is resisting RBM’s move for fear the probable financial abuse can be exposed.