CASSAVA SmarTech Zimbabwe's insurance arm, EcoSure, has apologised for erroneously deducting money from subscribers' EcoCash wallets on Saturday.
EcoSure was under fire on social media at the weekend as frustrated EcoCash users accused the micro-insurance company of "illegally" deducting money from their accounts despite them having not subscribed for the service.
In a press statement, EcoSure admitted to the mistake and apologised saying the deductions were made in error and that refunds have since been processed.
"Dear valued customers. We sincerely apologise for the EcoSure deductions that were erroneously made from some EcoCash customers," said the company.
It said those affected by the move were part of the company's "free cover promotion", which is done randomly on EcoCash users.
In an interview, an official from EcoSure said instead of awarding a premium to the selected EcoCash subscribers, the system mistakenly deducted from the selected subscribers' wallets.
"What happened on Saturday is totally regrettable. Our system was supposed to reward a premium to selected EcoCash subscribers but instead it deducted.
"The mistake has been rectified and refunds have been processed," the official said on condition of anonymity.
EcoSure was launched in 2014 with the intention of providing funeral insurance cover to the previously excluded communities in Zimbabwe through its low premiums.
The mobile micro-insurance product pays funeral benefits upon death of the insured person and to date it has registered over 8 000 burial societies across the country.
EcoSure offers premiums from a $1 a month and guarantees the assured benefits ranging from $1 000 up to $7 000 depending on the plan assured.
Last year Cassava SmarTech made history when it debuted on the stock market at a price of $1,50 per share, valuing the company at $3,8 billion and immediately becoming Zimbabwe's third most valuable company after Delta and Econet Wireless.