Insurance in Zambia

The Pensions and Insurance Authority (PIA) regulates Zambia’s insurance market under the Insurance Act No. 38 of 2021. It licenses insurers, reinsurers, brokers, agents, assessors, loss adjusters, risk surveyors and claims agents, and supervises solvency, conduct and policyholder protection. Insurance business without a PIA licence is prohibited, and property or interests in Zambia may not generally be insured with an unlicensed insurer. The current licensed-entity register should be checked before a contract is signed. The Insurance (General) Regulations, SI 105/2022, and newer rules on market conduct, reinsurance, microinsurance and insurance tribunals also apply to relevant products and disputes. Private general insurance covers risks such as motor damage and liability, fire, theft, house owners’ property, commercial property, business interruption, marine, aviation, engineering, agriculture, travel and public, employer, product or professional liability. Long-term insurance includes life, group life, funeral, annuity, credit life, personal accident and disability or income-benefit products. Product availability, exclusions, waiting periods, benefit limits, surrender rules and premium continuity depend on the policy and provider. Health insurance, including NHIMA and private medical cover, primarily belongs to the health topic rather than this insurance overview. Microinsurance is a regulated product class for defined benefits against a premium. Providers may distribute it through approved intermediaries, financial institutions, cooperatives, self-help groups, funeral parlours, aggregators or agents. Its limits, eligibility, benefits and premium depend on the product. A licensed microinsurance policy is not the same as informal mutual aid or an unregulated contribution arrangement. The Workers’ Compensation Fund Control Board administers the statutory employment-injury scheme under the Workers’ Compensation Act No. 10 of 1999. Covered employers register and pay assessments; workers do not have a payroll deduction for this scheme. It can provide medical care and benefits for work accidents and occupational diseases, including disablement, death and survivor benefits. Permanent civil servants, teachers, police and armed forces are among the stated exclusions. Employers generally report an accident within three days, while a worker or dependant provides the required notice, medical evidence and other supporting records. Claims generally have a twelve-month period for disablement or death, subject to statutory exceptions. Employers and claimants can use WCFCB forms, eWorkers services or USSD *708#. The National Pension Scheme Authority (NAPSA) provides contributory retirement, invalidity and survivor income protection. Formal-sector membership is compulsory under the applicable rules. Current NAPSA information states a contribution of 10% of gross earnings, divided equally between employer and employee, with payment due by the 10th of the following month. The stated maximum is K2,892.03 on a monthly earnings ceiling of K28,920.30. An informal-sector ECIS path is also available. NAPSA protects social income and does not replace a private life policy or other personal insurance. The National Pension Scheme Act No. 72 of 2026 and SI 62/2026 form part of the current reform framework. Motor third-party insurance is compulsory for using a motor vehicle or trailer on a road under Part IX of the Roads and Road Traffic Act, although government vehicles are exempt. The statutory cover is primarily for death or bodily injury to third parties and does not automatically pay for damage to the policyholder’s own vehicle. Comprehensive or other own-damage cover is optional and depends on the policy. Police and RTSA records commonly support a motor claim. An injured third party can bring a direct action against the insurer within the statutory limitation period, generally two years from the cause of action. When ownership changes, the previous motor insurance ceases under RTSA guidance, so the new owner needs separate cover. A policy should identify the insured person or property, covered peril, sum insured or benefit, exclusions, deductible or excess, territory, term, renewal conditions, waiting period, beneficiary rules, claim-notice period and cancellation consequences. A quotation, loan, employment relationship or vehicle registration does not by itself prove that cover has started; cover begins according to the insurer’s acceptance, cover note or policy terms. For prescribed products such as motor, house owners, funeral and life insurance, request the policy wording and the applicable Key Facts Statement. A licensed broker or agent can assist, but the intermediary’s licence should also be checked. The 2025 market-conduct rules prohibit tied selling and require fair treatment and appropriate disclosures. Premiums vary with the risk, benefit, term, deductible and provider. A 5% Insurance Premium Levy applies to premiums excluding reinsurance and is collected and remitted by the insurer, agent or broker. The levy is due by the 18th of the following month; broker commission is not the levy. Compare the total payable amount, levy, excess, fees, exclusions and renewal effect rather than comparing only the advertised premium. Policyholders should disclose material facts accurately, pay premiums by the due date, take reasonable steps to reduce losses, notify claims promptly, cooperate with assessors or loss adjusters, comply with security conditions and update material changes such as address, beneficiary, vehicle use, occupation, business activity or insured location. After an incident, protect people and property, prevent further loss, notify the insurer or intermediary within the policy deadline, and keep the policy number, identity documents, proof of loss, receipts and relevant police, medical, death or employer records. The insurer may appoint an assessor or loss adjuster and should provide a written acceptance or reasons for repudiation. Current market-conduct maxima are 31 days for general claims, 27 days for long-term claims, four days for funeral, hospital-cash and microinsurance claims, and about 60 days for complex claims. A complex claim can include one exceeding 25% of the insurer’s minimum capital or requiring expert advice. Policyholders have rights to policy documents, disclosed terms, fair claim handling, written repudiation reasons and complaint or redress procedures. The Insurance Fidelity Fund can protect eligible policyholders or beneficiaries against pecuniary loss caused by a defaulting licensed insurer or broker, subject to its regulations, limits and claim process. It does not guarantee every loss or every insurer payment. Changes to the sum insured, vehicle use, beneficiary, address, occupation, business activity or covered location should appear in an endorsement or new schedule. A verbal promise by an agent does not safely change the written cover. Non-payment can cause lapse or cancellation, and renewal is not automatically guaranteed unless the policy says so. A complaint should first be submitted in writing to the insurer or broker, with the policy, claim file, dates and previous correspondence retained. The insurer’s complaint handling period is generally limited to 10 days under the market-conduct framework. An unresolved matter can be escalated to the PIA after the internal process. The PIA may investigate its own initiative or a complaint from a representative, group or anonymous source, but it can decline matters that are frivolous, withdrawn, already before a court or another authority, or not yet taken through an available remedy. A complaint is generally subject to a one-year period after the relevant rights have been exhausted. The Insurance Tribunal can receive and investigate policyholder disputes under the 2025 Tribunal Rules, while court proceedings remain legally distinct. Zambia’s insurance rules are national; actual availability still varies by provider, branch, agent, connectivity and formal or informal employment.