In a bid to cushion its clients from the financial distress brought about by the novel Coronavirus pandemic, Minet Kenya has launched an insurance premium financing offering that will enable easy payment of premium in instalments.
Minet Kenya Chief Executive Officer Sammy Muthui said the plan, in partnership with Momentum Credit Limited will allow individuals and entities to pay a deposit equivalent to 20% of the value of their insurance premium to activate the cover.
“In these rapidly changing times, we have been thinking about our clients and the challenges they are facing as a result of the Coronavirus disease (Covid-19) pandemic. Recent reports indicate that the pandemic has forced many Kenyans to cut down on their household expenditures including insurance premiums. The unveiling of this insurance premium financing solution in in partnership with Momentum Credit Limited at this time reflects joint our commitment to providing financial relief to our customers as they deal with the effects of the pandemic,” Mr. Muthui said.
Mr. Muthui added that the premium financing solution will mean that clients will not have to liquidate their necessary assets or spend key funds to settle premium payments, especially during this difficult time.
It is mandatory for premiums to be paid upfront by policyholders as required by the Industry regulator, Insurance Regulatory Authority.
“The cash-and-carry rule in effect at the moment requires that the insured pays premium in full before a policy is activated. However, many Kenyans are not able to pay their insurance premium upfront as required by the law. This financing solution will now make it easy for them to meet this requirement,” Mr. Muthui added.
The insurance solution now makes it easy for Minet to enter into an agreement with the underwriter and the insured whereby Minet will pay immediately upto 80% of the insurance premium of the insured.
The product will enable the insured to leverage their assets for other business critical needs.
Payments will be spread over an agreed period of between one and 11 months and Minet will act as the billing and collecting agent.
“This insurance solution is available to both individuals and organisations and covers annual premium range of KSh5, 000 and KSh 2, 000, 000,” Mr. Muthui noted.
Momentum Credit Chief Executive Officer Mr. Job Muriuki said the partnership with Minet ties in with Momentum Credit’s vision of offering transformative solutions.
“The stress of paying premiums in lump-sum is a thing of the past and one can pay in affordable installments over 11 months. This is a revolutionary product which makes even comprehensive insurance an affordable reality for all motor vehicle owners. ” Mr. Muriuki said.