Following a recent member alert by SAMBRA regarding outstanding payment from Nzalo Insurance for repair work authorised and completed, Nzalo Insurance has issued an official media statement:
Nzalo Insurance commits to settling all valid claims
The management of Nzalo Insurance, a subsidiary of Bophelo Insurance Group (BIG) wishes to assure its customers and various stakeholders, in particular, members of the South African Motor Body Repair Association that, it plans to settle all valid claims once its financial position improves following a few months of cash flow challenges.
Nzalo outsources a bulk of its services including underwriting, claims administration and premium collection functions to third party administrators. To this end, its major premium collector, Insure Group, was put under curatorship that caused severe cash flow constraints for Nzalo, leading to its inability to pay claims timeously.
Importantly, as announced a few months ago, BIG is in the process of concluding a transaction with Lebashe Financial Services, a subsidiary of Lebashe Investment Group that will see Lebashe owning 70% of Nzalo. This transaction is subject to approval by the regulators and liquidators (of Vele Investments, the previous shareholders) – that will also pave the way for the lifting of Section 12 Prohibition by the Prudential Authority that prevents Nzalo from writing new business.
Nzalo assures its customers and broader stakeholders that its turnaround strategy is on course and the business is well capitalized following a substantial cash injection by Lebashe to meet the regulatory capital requirements prescribed by the Prudential Authority.
In conclusion, Nzalo wishes to apologise to their clients for any inconvenience that may have been caused as a result of the company’s financial challenges and urge their stakeholders to bear with them during this time of reorganizing and redesigning their business for optimum performance and efficient service delivery.
For any media queries, please contact Khaya Buthelezi on Cell: 071 364 7296, Email: firstname.lastname@example.org