Published: 11 October 2013

The Deposit Protection Corporation has increased insurance cover for depositors to $500 to restore confidence in the banking sector.

The upward review of depositor insurance cover from $150 to $500 follows complaints by depositors that they are being shortchanged as most of them get funds that did not match their savings after the closure of financial institutions.

Depositor Protection Corporation Chief Executive Officer John Chikura told reporters that the initial payment of $500 was aimed at protecting the interests of depositors as most of their savings will be paid after the liquidation of a troubled bank.

"We understand their concerns and we shall do something," said Mr Chikura.

Consultations for an upward review of the deposit insurance cover were carried out last year as government seeks to restore savings in the economy at a time most households are shunning the banking sector citing low returns on investments.
- zbc

You might also want to read this

• Mthuli Ncube boost for insurance sector
• Insurance Companies must provide quality service
• Motor, fire policies add spark to non-life insurers' earnings
• Life assurance sector assets rise to $2,5bn
• Man arrested over fake vehicle insurance scam
• New rules to shake up insurance sector
• Insurance bureau gets thumbs-up
• Zim to establish insurance crimes unit
• Zim insurance sector set for rebound
• Zim insurance sector set for rebound