Insurance industry, garage owners bang heads on pricing

The Insurance Association of Malawi (IAM), a grouping of insurance companies, on Wednesday met garage owners and assessors in Blantyre to iron out differences relating to insurance claims on vehicle repairs.

IAM president Grant Mwenechanya, who is also chief executive officer of Britam Malawi, underlined the importance of the meeting, stressing that 65 percent of insurance business is motor.

In addition to that, he said 80 percent of claims insurance companies process and 60 percent of their expenditure are motor.

“The insurance industry has a number of challenges in terms of road accidents. Motor vehicle owners go to garages and insurance companies have to pay for the repair works,” he said at the motor symposium in Blantyre.

The insurance industry, Mwenechanya said, is concerned with disparities in pricing by garages when insurance companies are involved.

He said there is need to charge fairly so that both sides benefit from the job done.

A representative of Indigenous Garages Association, James Nthara said the meeting provided an opportunity for the two sides to iron out misunderstandings.

On pricing, he said: “There are several factors that determine that, but quality [of the work] matters as well. But we understand that insurance companies have personnel that can scrutinise the quotations.”