If you are approached to take out an insurance policy or when you plan to do so on your
own accord, you may be asked by the broker or agent to sign a blank contract and that
the rest of the information will be filled in later at the office. If that happens, REFUSE!
Pay special attention to the type and content of the contracts that you are being asked
to sign. These contracts are legally enforceable, just like the contracts you might sign
to buy a home or a car. Make sure you ALWAYS read everything in the contract you
are asked to sign; DO NOT SIGN BLANK DOCUMENTS.
Also insist that all the terms in the contract be explained to you in the simplest terms
and/or in the language that you understand. If you sign blank forms, dishonest brokers,
agents or insurance officials might complete them with information that could increase
the cost of the policy significantly, even two to three times the original quote. Signing
blank contracts could also result in you buying wrong insurance products which may
strain you financially.
By refusing to sign blank or incomplete contracts you will prevent unnecessary
financial loss or suffering from related penalties.
Always insist on a copy of the contract as this will help to protect you later if the
document you signed is subsequently altered.
If an agent or broker insists that you sign a blank or incomplete contract, consider
cancelling and move to another insurance company. Even though it is an inconvenience,
it is better to cancel than to deal with the consequences of dealing with a dishonest
agent or broker.
Quick Tips: Don’t become a victim of insurance malpractices
• Make sure that the insurance contract you sign contains
no unfilled blank spaces.
• Pay attention to pre-checked boxes in the contract; they could bind you
to terms you don’t want.
• Make sure everything you were promised verbally by the agent or
broker also appears in writing.
• Don’t be pressured into signing the contract if you are not yet ready
or comfortable.
• Don’t be afraid to seek advice if you need it. A lawyer or
financial advisor can help.
• Remember, contracts are designed to protect both parties. Make sure
you fully understand all the details before signing on the dotted line.
• Keep a copy of every document you sign.
Consumers are encouraged to report such violations to:
The Registrar of Long-term and Short-term Insurance or call our Complaints
Department at: 061 290 5000 (main) or 061 290 5133 (Ms. Marina K. Ishidhimbwa)
or 061 290 5207 (Ms. Hilka Alberto), Fax: 061 290 5122; for online complaints
email; visit our website at or
visit us on the: 6th Floor, Alexander Forbes House 154, Independence Avenue,
* NAMFISA treats all information obtained from the public
with confidentiality.
Issued by:
Phillip N. Shiimi