A 49-year-old church pastor from Bulawayo has been convicted and fined for insurance fraud after faking a road accident and subsequently claiming compensation from an insurance company.
Ndabezinhle Ngoma, a director at Quick Fix Service Centre, was convicted of insurance fraud and sentenced to a fine of US$600 and a wholly suspended 12-month prison term.
He deliberately caused extensive damage to his Mercedes Benz vehicle by ramming it into a direction signpost and a streetlight along Fife Street Extension, Bulawayo, on June 8th. He then reported the stage-managed accident at ZRP Bulawayo Central Traffic and was fined USD$30 for negligent driving.
Ngoma proceeded to claim from his insurance company, resulting in the firm suffering a potential prejudice of US$10,000. It’s not clear how the fraud was detected.
Legal expert Mr. Tonderai Mutasa warned that unchecked insurance fraud could reverse economic gains, as insurance companies invest in properties that help boost the economy. He said:
Insurance companies also invest in properties, and this makes the economy boom. If people make fraudulent claims, it means the insurance money is not being put to good use and it then affects the economy in general. Commercial crimes generally negatively affect the economy as monies go where they are not supposed to be.
The Zimbabwe Insurance Crimes Bureau (ZICB) recorded more than 20 cases of insurance fraud last year, with over 10 suspects having appeared in court.