Namfisa resolves consumer complaints
Funeral claims biggest issue
In the third quarter of this year, Namfisa resolved 100% of consumers' complaints received within 40 working days.
Non-payment of funeral claims was the leading complaint among consumers in the third quarter of this year, accounting for 8.75% of the queries received by the Namibia Financial Institutions Supervisory Authority (Namfisa).This was followed by repudiation of funeral and motor vehicle accident claims, each accounting for 7.5%, according to Namfisa. From 1 July to 30 September, the non-banking financial watchdog received 80 complaints across various financial sectors.
All of these complaints were resolved within 40 working days, as per Namfisa’s service level commitment, the regulator said in a statement.
Industry
The industries with the highest complaints included long-term insurance (37 complaints), short-term insurance (25 complaints) and microlending (11 complaints). Notably, complaints in the microlending sector saw a significant decline compared to the 53 complaints received during the same period in 2023, Namfisa said.
According to Namfisa CEO Kenneth Matomola, the regulator facilitated payments amounting to over N$2.7 million for long-term insurance claims, marking a substantial increase from the previous quarter. In contrast, pension fund payouts dropped significantly to N$36 511 from N$466 609 in the second quarter.
Payments in the short-term insurance sector also declined by 78%, while the medical aid fund sector showed an improvement, with N$86 231 disbursed.
Integrity
“These figures highlight Namfisa’s effectiveness in holding financial entities accountable and promoting consumer rights,” the regulator said.
“By engaging with relevant entities and fostering a culture of compliance and consumer-centric practices, Namfisa contributes to the stability and integrity of Namibia’s financial landscape,” it added.
According to Matomola: “Our ongoing efforts to protect consumers and guide industry players are focused on compliance and best practices through consumer education. This dual approach ensures that our financial system remains robust and trustworthy.”
Consumer education
Matomola emphasised the importance of consumer education, stating: “Consumer education is key to empowering individuals. By understanding their rights and responsibilities, consumers can make informed decisions and minimise disputes with financial institutions.” Namfisa advises consumers to first engage directly with their financial service providers before lodging complaints with the authority.
Consumers submitting complaints to Namfisa must provide evidence of prior engagement with the financial institution, written feedback received and all supporting documents.
Namfisa remains steadfast in its commitment to fostering a stable and fair non-banking financial sector that promotes consumer protection while ensuring a safe, stable and fair financial system that contributes to Namibia’s economic development, concluded Matomola.