Insurance provider Minet Kenya has launched insurance premium financing that seeks to enable policyholders to ease the burden of costs that have been complicated by the Covid 19 ripple effect on households and businesses.
The product introduced in partnership with Momentum Credit Limited enables easy payment of premium in instalments.
Minet Kenya Chief Executive Officer Sammy Muthui said they “have been thinking about our clients and the challenges they are facing” and they are committing to provide financial relief to their customers even as they deal with the economic impact caused by the Covid 19 pandemic.
Industry regulator, Insurance Regulatory Authority (IRA) requires policyholders to pay premiums upfront.
“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 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,” Muthui said.
The new insurance solution is available to both individuals and organizations with an annual premium range of Sh 5,000 and Sh 2,000,000.
Underwriters and insured obligation
With the new product, Minet has the privilege of entering into an agreement with the underwriter and the insured by instantly paying a ceiling of 80 per cent of the insurance premium for the insured.
The rest of the payments will be spread over an agreed period of between one and 11 months. During this period, Minet will act as the billing and collecting agent.
Motor vehicle owners to benefit
While hailing the new partnership with Minet, Momentum Credit Limited’s Chief Executive Officer Job Muriuki said: “The stress of paying premiums in lump-sum is a thing of the past. This is a revolutionary product which makes even comprehensive insurance an affordable reality for all motor vehicle owners.”