The Reserve Bank of Malawi (RBM) has described the three-for-three insurance product launched by Airtel in partnership with Nico Life Insurance company and Micro Ensure on Tuesday as a landmark that will “consequently drive the integration and penetration of micro insurance in the country to unprecedented levels.”
RBM deputy governor (supervision) Grant Kabango said this during the launch of the product at Sunbird Capital in Lilongwe.
Micro-insurance is affordable insurance for the low income segment of the market.
With this new product Airtel subscribers shall be privileged to use their mobile phone to access life insurance services.
“The reality is that poor people face greater financial burden when hit by an unexpected event, such as the untimely death of a family member, chronic illness or injury or loss of assets. When faced with such difficulties, they only fall deeper into the poverty trap. The introduction of micro-insurance will play an integral role in diminishing the risks associated with catastrophes,” said Kadango.
He said the development of micro-insurance industry will ensure that low income households can live life with dignity, especially in times of adversity.
This new product offers Airtel’s customers life, accidental permanent disability and hospital cash cover for free by recharging an accumulative amount of K500 or more each month, with no extra charges to customers.
Subscribers will dial *191# to register for the service. The insurance becomes active on the first day of the month after registration. No paper work or ID are required, according to Airtel chief executive officer Heiko Schlitke.
“Through this product we are linking mobile handsets to this insurance service thereby adding value and return to the customer’s use of airtime. When customers wish to make a claim, term and conditions have been provided which have to be met by the customer. The claim would be processed within 72 hours,” said Schlitke.
Nico Life Insurance company chief executive officer Osman Karim said the introduction of this service will revolutionise insurance services in the country as many people will be covered. n
