Published: 01 April 2014

Navistar Insurance Brokers and Global Insurance Company says it is contesting the 'intended' withdrawal of its license by the Insurance and Pensions Commission (IPEC).

Navistar managing director Vukile Hlupo said this morning that "information emanating from various quarters is not true and misleading", and that the cancellation of their license was unjustified.

"We have written responding to them as their reasons do not warrant licence withdrawal," said Hlupo.

A letter from IPEC to Navistar seen by BH24 show the regulator as withdrawing the insurance firm's license for the following reasons: That Navistar was operating without at least three directors on its Board, which is contravention of section 7C (1) of Statutory Instrument 59 of 2005.

IPEC has also alleged that Navistar was withdrawing funds to meet operational expenses from a designated trust account, which should ordinarily be meant for deposits of premiums pending transfer of the same to insurers.

Additionally, Navistar is accused of using its other bank accounts which are not designated trust accounts to receive premiums and conduct other transactions in respect of the broker's operational expenses.

And IPEC also said it was worried about Navistar's lack of response to the allegations that it prejudiced Air Zimbabwe Holdings limited on its aviation insurance policies.

Three Navistar bosses, including Hlupo, have so far appeared in court on fraud charges. 
- BH24

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