Nyaradzo Boss Philip Mataranyika Defends Company From Accusations Of Being A Scam

Nyaradzo Boss Philip Mataranyika Defends Company From Accusations Of Being A Scam

Nyaradzo Boss Philip Mataranyika Defends Company From Accusations Of Being A Scam

Phillip Mataranyika, the co-founder and CEO of the Nyaradzo Group of Companies, has issued a statement defending his company following allegations that the funeral services provider is a scam.

Nyaradzo has been trending on social media platforms as disgruntled Zimbabweans shared their negative experiences with the service.

Some claim that Zimbabwean funeral policies are a scam in their present form because they never mature or pay their holders any cash back.

 

 

They suggested that Nyaradzo review the terms and conditions in order to provide clients with greater benefits.

The CEO of Nyaradzo Funeral Services, Mataranyika, defended his business from the scam allegations by claiming that the policies are fair. He stated that some clients really gain more value than they would have spent in premiums.

 

 

Nyaradzo Boss Philip Mataranyika Defends Company From Accusations Of Being A Scam
[Image: Facebook/Nyaradzo Funeral Services]

Writing on social media, the Nyaradzo CEO said,

“Just to give perspective to the discussion that has been raging on social media for the past few hours. I would like to let the public know that we have policies that mature and those that do not because of two reasons, pricing and flexibility.

“Over the years, we have had policies that mature and could cover only principal members. Because we are an organisation that cares and understands the African and Zimbabwean culture we introduced a new generation of policies that were flexible and affordable. The first of those policies was the six pack whose highest premium for all six is US$57. Because clients saw value in a policy transaction that covered six members of the family including parents from both sides, they opted out of the traditional policies that mature and migrated to the six pack plan. The traditional policies almost died as less and less people signed up for them, but we have kept them on our books. Let me take this opportunity to work out the possible scenarios.

“With our six pack plan, which covers six people of any age the highest premium is US$57 per month.
Let’s work it out together so you see what this means. $57×12=$684. Multiply that by say 20 years that is $13680

“Now among those that can be covered under the six pack plan are parents of both spouses, four of them who may all be above the age of 70 and may die within the twenty year period.

“Assuming the cost of funeral services of each is about US$10000. Multiply that by 4 that gives you US$40000 and you still have the husband and wife to go. Assuming they both die within the twenty year period, the cost of service provision goes up to US$60000.

“Even if you say the cost of service provision for each of them is US$5000 the total cost of service provision for all is US$30000 in the event they die within the twenty year period which is a possibility. That is still more than double the total premium of twenty years. Tell me why anyone thinks we are out to give clients a raw deal.

“Even if we work it out at US$4000 per person, the cost of service provision at US$24000 for all four is still more than the total premiums paid.

“Remember also that children of the principal member are covered for free and could also die as death doesn’t come only to the aged.”

 

Nyaradzo Boss Philip Mataranyika Defends Company From Accusations Of Being A Scam
Nyaradzo CEO Phillip Mataranyika Defends Company From Accusations Of Being A Scam [Image: Facebook/Phillip Mataranyika]

Mataranyika’s remarks, though, elicited conflicting responses as individuals questioned his assertions. They countered that he was conducting a charity in accordance with his claims and that his numbers were excessively overstated.

Others, on the other side, defended the Nyaradzo CEO, stating that his business offers a fantastic service at reasonable prices.

 

@CNedzevamwe

 

“Mataranyika’s argument is lame and silly. He surely can’t tell us he is running a charity or a business at a loss by providing services which are far more expensive than the services provided.

“The issue is very simple; we need a financial services regulation that will regulate that type of insurance and probably place a cap on maximum premiums or introduce cash backs, just like what other countries do with medical aid schemes.”

@Changunda1

“It’s high time IPEC reviews the whole Insurance business model.

“What happened to the USD premium that was paid 2009-2018?
That cost of $10k/funeral is so exaggerated.”

@bmukorera

“Cost of $4000 to the company is highly probable if you factor in cost like human capital, running of mortuary, transport costs for moving between hospital and where the mortuary is, servicing of vehicles and taxes , then the actual money that goes to the burial specifics etc.”

 

@cckiestorhlucas

“But his argument is based on ridiculous assumptions. I assume he’s an actuary or atleast he works with some who will tell him that his cost assumptions are out of touch with reality! In Zim, a USD4000 funeral means someone wld work just to save for their funeral & not much!”

 

@Infinit73133988

“He didn’t even address the issues raised by the one who started the conversation. Someone pays for sometime not on the 6pack but the other packages, default for 3months because of unforeseen circumstances, boom no help comes? Let him address that not to try and hoodwink pple.”

 

@eddiemhan

“We are not as dull to believe this lie and amplified figures,which are worked out on a one sided “What if” assumption, what about the other side of it,what if not.”

 

@anotidamakosa2
“Do a death fund for your beneficiaries for in your pillow, mattress, Mukuru account or pay the premium for someone else to do it for you. “Scammy ” as it may seem they are still in it for the money, profits not just survival. It’s a business.”
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