Small and Medium Enterprises (SMEs) and non-governmental organisations (NGOs) will now have the opportunity to insure their firms following the launch of the Umbrella Premier Policy, designed to cover motor vehicles, assets and others under a single policy.
The policy, being brokered by Marsh Malawi Limited with Nico General Insurance Company Limited as their underwriters, is touted to provide convenience and affordable rates.
In an interview on the sidelines of the launch in Blantyre on Monday, Nico General Insurance Company Limited chief executive officer Donbell Mandala, who is also Insurance Association of Malawi president, said by narrowing down products to specific segments, the newly-introduced policy will allow the insurer to concentrate on the selected segment and push penetration forward.
He said while NGOs are well funded entities in Malawi and are working to alleviate livelihoods of Malawians, SMEs are one of the blossoming sectors; hence, the need to have tailor-made products.
“A lot of NGOs and SMEs don’t know that there are policies that can cover them in case of eventualities. This policy combined is giving you eight products in one policy,” said Mandala.
He said the policy offers convenience and affordability, adding that they hope the policy will boost insurance penetration from the current 1.4 percent.
Marsh Malawi Limited managing director Mphatso Chadzala said insurance penetration has been on the lower side due to affordability issues; hence, the launch of the tailor-made policy.
He said the policy has increased coverage and limits in motor, fire, burglary, business risks, fidelity guarantee, money, goods in transit, public liability and group personal accident.
For instance, the policy’s has third party use limit set at K500 000 from the normal K50 000 offered on the market as well as death and bodily injury pegged at K7.5 million from the normal market rate of K5 million.
In an inteview yesterday, SMEs Chamber executive secretary James Chiutsi said said the uptake of insurance services in the sector has remained a challenge due to affordability and challenges experienced in getting compensation. Among other unique features, the policy has automatic theft cover on all insured vehicles, accidental loss of personal effects, including money and negotiable instruments up to K500 000 per vehicle and trauma and counselling expenses following a motor accident up to K250 000 maximum per event.