Insurance in Malawi

The Insurance Act 2024, Act No. 6 of 2025, took effect on 1 May 2025 and replaced the Insurance Act 2010. The Financial Services Act 2010, Registrar’s Directives and applicable Codes of Conduct also shape the market. The Registrar of Financial Institutions (RFI) within the Reserve Bank of Malawi (RBM) supervises insurers, reinsurers, brokers, agents, claims settling agents and loss assessors or adjustors. A reinsurer provides insurance to an insurer for part of the insurer’s own risk. Insurance Association of Malawi is an industry body, while the RFI is the statutory regulator. Bancassurance means selling insurance through a bank; it does not remove the requirement to use a licensed insurance provider or intermediary. Life insurance includes funeral cover, group cover, term benefits, accumulation products and credit-life cover for death or permanent disability. General insurance is usually short-term and can cover motor vehicles, homes and household property, fire, flood and storms, burglary, business assets, agriculture, weather or power-failure risks and liability. Comprehensive and third-party, fire and theft policies can also cover damage to the insured vehicle, but those protections are separate from compulsory third-party cover. Premiums depend on the insurance class, insured amount, period, risk and exclusions; no single national premium applies to every policy. A motor vehicle used on a public road must have third-party insurance or another legally recognised security under Part XIV of the Road Traffic Act. This cover addresses liability for a third party’s death, bodily injury and property damage. The insurance certificate should remain in the vehicle and be produced to the police or an authorised inspector. A third party can bring a direct claim against the insurer within two years from the cause of action, subject to the policy limit. Damage to the vehicle owner’s own vehicle requires voluntary comprehensive or third-party, fire and theft cover. The Insurance Act 2024 also requires an NCIC-registered contractor to hold cover for bodily injury, loss of life and property damage arising during construction work, including the relevant project defects-liability period. The owner of a public building needs cover for collapse, fire and natural disasters together with owner or occupier liability. A prescribed share of net premiums can support a disaster fund administered through the Registrar. Insured imported goods generally require placement with a licensed Malawi insurer. Workers’ compensation covers work injuries, occupational diseases and deaths. A worker or dependant can claim medical aid and other compensation under the Workers’ Compensation Act, Cap. 55:03. An injury should be reported immediately or as soon as practicable, and a claim normally has to be made within 12 months of the injury or death. The Ministry of Labour receives reports and claims and investigates the worker and employer position. Appeals go to the Workers’ Compensation Tribunal within 30 days; further proceedings are limited to the routes and legal questions allowed by law. The Workers’ Compensation Fund is provided for in legislation but has not been fully established according to the available official labour finding, so practical protection still commonly operates through individual employer liability and may involve a single payment. A pooled employer-contribution and periodic-payment system is being developed. An occupational pension is different from insurance. The Pension Act 2023 requires employers to enrol employees in a mandatory occupational pension scheme, with minimum contributions of 10% of pensionable emoluments from the employer and 5% from the employee. This provides retirement and dependant protection but is not an insurance contract and does not replace life or disability insurance. Public healthcare generally provides the Essential Health Package free at the point of care through tax and partner funding. Malawi does not have a nationally contributory health-insurance system established in the reviewed official sources. Private medical aid and health insurance are available through providers such as MASM, Metropolitan Health and MED-Life, but access and networks depend on the provider and policy. Before paying a premium, verify the provider or intermediary through the RFI. Complete the proposal form honestly and disclose facts that could affect the risk. Check the insurer, insurance class, insured amount, policy period, exclusions, excess, beneficiaries, notice deadlines, renewal, cancellation and claims procedure. An excess is the amount the policyholder pays before the insurer pays the covered balance. A policy change recorded by the insurer is an endorsement. Insurance cover generally requires the premium in advance before the policy starts, except that this rule does not apply in the same way to life insurance excluding group life. False statements, fraud, unpaid premiums, late notification and failure to reduce further loss can jeopardise payment. Report a loss to the insurer immediately, notify the police where appropriate and take reasonable steps to limit further damage. Typical evidence includes a police report, medical report, repair or replacement quotation, policy or proof of cover, identity documents and other evidence of the loss. A complete file and signed discharge voucher commonly form the operational point for payment. RFI or legacy guidance refers to payment within 14 days after the discharge certificate, while current directives may add procedural detail. Inclusive-insurance guidance refers to a maximum of three working days after complete documentation. A complaint normally starts with the insurer’s branch, service centre or principal office by voice, letter, email or walk-in contact. For a licensed provider, the policyholder can then approach the RFI through its complaints portal, mediation or alternative redress process. RFI handling categories range from 0 to 10 days for simple matters, 11 to 20 days for investigations, 21 to 30 days for extensive matters and 31 to 60 days for complex matters. The Registrar does not decide compensation amounts. Criminal fraud, unlicensed providers and court proceedings may require the Police, Fiscal Police, Anti-Corruption Bureau, Financial Intelligence Authority or a court, depending on the facts. Review cover before renewal instead of assuming that it continues unchanged. Notify the insurer about changes to a vehicle, use, address, asset value, beneficiary or occupation and obtain an endorsement where required. For a motor vehicle, return the relevant certificate when transferring, suspending or cancelling cover and arrange replacement cover before using the vehicle. Life-policy surrender, paid-up status and beneficiary changes depend on the policy terms. No general portable cover across all situations is established by the available national research.