By Benadetta Chiwanda Mia:
In 2018, Jenifer Maini Mtima suffered fatal injuries in a minibus accident on her way to Lilongwe when the minibus, registration ZA 634, which was coming from the direction of Dedza, was involved in an accident at Nathenje.
She died a month later at Zomba General Hospital.
Her brother, Dickson Maini Mtima, sought compensation on behalf of their grieving family.
The police at Nathenje directed him to an “agent”, who, in turn, introduced him to private practice lawyers.
Dickson never met the assigned lawyer, though.
Instead, he was told that all communication would go through the agent.
Years passed. Nothing materialised.
Fearing that the statute of limitations would nullify the claim, he turned to Companion Insurance Claims Settling Agency in 2023.
Investigations revealed that Libertas General Insurance Company had already paid K4.5 million in 2019.
The agent and lawyer knew about the payment but none of the money had reached the bereaved family.
A desperate gamble
Then came a phone call in September 2024.
Dickson was summoned to Lilongwe. Traveling with his father, Evason John Maini, he met with the agent and the lawyer.
Their money, they were told, was finally ready. But first, Evason had to surrender his national identity card.
They were then informed that while K4.5 million had been paid, the lawyer and agent would take 40 percent as “legal fees”.
Another K600,000 was deducted as an additional charge for “retrieving the funds”.
They were left with K2.8 million.
Dickson’s father sat in silence the entire journey back to Zomba, his sorrow heavier than the weight of the cash in his pocket.
Another name, another scheme
Dickson Maini’s case is far from unique.
On the morning of January 6, 2025, Ephraim Austin, a vibrant 28-year-old, pedaled his bicycle taxi (kabaza) towards Lunzu Trading Centre, unaware that fate had already set a cruel trap.
A speeding vehicle struck him down.
The driver vanished, leaving Austin broken on the roadside. Good Samaritans rushed him to Mlambe Hospital before he was transferred to Queen Elizabeth Central Hospital, where he endured four agonising months of treatment.
He survived—but at the cost of his right leg. His Kabaza days were over.
Yet, the accident itself was not the greatest betrayal he would face.
Determined to seek justice, Austin’s family sought the services of a lawyer in Blantyre.
Their hope was that he would secure compensation from Prime Insurance Limited to help Austin rebuild his shattered life.
“In 2022, the lawyer took us to Prime Insurance, where he assured us that the company had agreed to pay K5.5 million,” Austin recalls. “After we left, he told us that the cheque would be ready in 45 days and handed us K6,000 for transport.”
That was the last time they heard from him.
Calls went unanswered. Weeks turned into months, and months into years. No cheque ever arrived. When the family reached out to Companion Insurance Claims Settling Agency for help in 2023, the lawyer confirmed to have received the money but only paid Austin K1.5 million.
When reached for a comment, the lawyer explained that Prime Insurance paid the K5.5 million claim in two separate cheques; one for K2.5 million and another for K3 million.
He explained that only the K2.5 million cheque went through but the other was returned to the drawer for insufficient funds.
“Our agreement was that we would take 25 percent of the total damages, 25 percent of K5 million plus the costs. That amounted to money that we had spent to attain the money because to recover the K5 million, there was money we spent out of our pockets; so, costs were agreed at K500,000.
“So, from the K2.5 million that was paid, we took the K500,000, being the cost, and 25 percent of the K5 million was also K500,000, leaving K1.5 million payable to him. We are currently still pursuing the remaining K3 million with the insurance company,” the lawyer explained.
The situation has left Austin struggling to support himself, further deepening his hardship.
The growing epidemic
These are not isolated incidents.
Insurance Association of Malawi (IAM) estimates that 25 percent of motor vehicle claims are fraudulent, costing the industry billions of Kwacha.
Insurance Association of Malawi Vice President Wales Mejar says insurance fraud remains a significant challenge in Malawi, posing both financial and reputational risks to the industry.
“Industry insights indicate a growing number of cases, negatively impacting insurers’ profitability and eroding public trust,” Meja said.
He emphasised the need for coordinated efforts among all stakeholders, also combining digital innovation, public engagement and stronger industry controls to create a more resilient and trustworthy insurance sector.
Consumers bear the brunt, paying inflated premiums as insurers attempt to offset these losses.
In 2023, insurance claims—both paid and outstanding—stood at K28 billion, up from K21.4 billion in 2022.
The Reserve Bank of Malawi (RBM), which regulates financial institutions, acknowledges the rising crisis and says it is implementing risk-based supervision to curb malpractice.
“As the Registrar of Financial Institutions, we are trying to improve on the laws by ensuring that the way we regulate them [insurance sector players] should include risk-based supervision, given that most institutions are susceptible to risks,” said RBM Deputy Governor Kisu Simwaka.
A broken system
Malawi Law Society immediate-past president Patrick Mpaka insists that there are processes in place to handle such cases.
“If a complaint is lodged, we write to the lawyer to establish its validity. If found guilty, the disciplinary committee can refer the matter to the Chief Justice, Attorney General or Director of Public Prosecutions. The lawyer may be ordered to refund the stolen funds or get other severe punishments, although some processes are out of our control,” Mpaka says.
Yet, many cases slip through the cracks. Delayed justice is justice denied. Victims like Austin and the Mtima family are left clutching broken promises instead of rightful compensation.
Until real accountability is enforced, the corridors of Malawi’s justice system will remain a hunting ground where legal predators feed on the misfortune of the vulnerable.
