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Biti takes First Mutual to court over retirement package.

MDC-A vice president, Tendai Biti, has dragged insurance company, First Mutual Holdings Limited to court demanding a total retirement assured sum amounting to ZW$15 000 000.

The insurance company had said it would only pay him less than what was agreed upon attaining his retirement age of 60.

First Mutual Holdings is yet to enter appearance to defend notice.

According to summons filed recently at the High Court, Biti said in 1993 while he was a partner in the law firm called Honey and Blanckenberg, his pension contributions were with his consent converted by First Mutual into an annuity policy.

“The annuitization phase commenced with a payment of ZW$15 648, 04 and the written projection given by defendant (First Mutual) was that upon attaining the retirement age of 60, plaintiff would be paid a capital value of ZW$4 133 593 and an annual pension of ZW$782 066, 47 giving a total assured sum of ZW$15 000 000,” he said.

“In breach of the agreement between the parties and taking advantage of the changes in currency that occurred in the 2009, defendant has unilaterally cla8imed that as at March 2009, the value of plaintiff’s policy was US$196, 76 and US$327, 28 as at December 31, 2015.”

“In terms of the purchasing power parity theory which constitutes an integral tacit term of the insurance relationship between the parties, plaintiff (Biti) is entitled to a payment which preserves and reflects the total value by which he was insured,” he said.

Biti said First Mutual Holdings has refused to take a position which recognises and upholds the essence of what was agreed to rendering it necessary for the court to declare the correct position for the guidance of the parties.

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