One of the country’s mobile operators, Telekom Networks Malawi Limited (TNM) has becoming the first to offer a mobile life insurance service, Moyo Cover, through Mpamba Mobile Money initiative.
The Mobile Life Insurance, a revolutionary product that provides free life insurance cover to ordinary citizens for the first time, will be managed by Nico Life Insurance as the underwriters.
Moyo Cover comes at a time when the country has less than 2 percent of its population on life insurance, and at a time when ordinary life insurance is regarded as unaffordable as it is typically 5-8 percent of the sum insured with access to insurance products in the country at low level as insurance agents do not serve low income customers.
And in an interview with Nyasa Times during the launch of the service in Blantyre on Friday, TNM Head of Division-Innovations, Daniel Makata said the service was as a reward to the company’s customers for their loyalty.
Makata said TNM will provide free insurance cover to any registered subscriber and their registered beneficiary family member of ages between 5 and 75, and that the Moyo Cover will defuse the general lack of trust in insurance services by most Malawians.
“Any TNM subscriber under Mpamba Mobile Money service can register and with not less than K1, 000 TNM airtime usage per month, one can get an insurance cover. And it is their monthly usage that will determine how much one’s cover is. The more they use, the higher the amount of cover claimable,” said Makata.
In order to register for the free life insurance, one has to be TNM subscriber aged between 18 and 75 and can have one family member as beneficiary, and the cover can be effective one month after registering, which is regarded as window period. One can register by dialing *789# and TNM agents will process the claim.
And according to Makata, the Moyo Cover can only claimed in the first month of register if the policy holder dies in an accident, and is calculated based on monthly airtime usage.
Makata said: “For every monthly airtime usage of between K1,000 and K2,400, the subscriber’s insurance cover is K50, 000, and the family member gets also K50, 000. The cover amount increases also when the monthly airtime usage increases. Moyo Cover is absolutely free, customers just need to keep using their TNM number with the minimum usage of being K1,000 per month.
“And in addition to the cover amount, those customers who have been on TNM network for one year and above will be getting additional benefit of K50, 000 on top of the expected benefits. The unique feature of the Moyo Cover is that both registered subscriber and their family beneficiary can both claim if one of them was to die thereby making both beneficiaries of each other under one registration”.
Nico Life Insurance Company Limited Chief Operating Officer, Johan Van Schalkwyk said the TNM Moyo Cover will simplify life and excite people to have life insurance as it is easy to understand and that the service will be of great deal for rural and low income population.
“TNM Moyo Cover delivers simplicity and is accessible to everyone in Malawi at no cost, which does not happen with other ordinary life insurance cover. It offers solution to risks Malawians face and people even in rural areas can access life insurance for the first time. The service will ensure that people now have time to focus on developing their lives without worrying about costs associated with losing life that is not covered by insurance,” said Schalkwyk.
TNM has entered into agreement with Nico Life Insurance and MicroEnsure UK Limited for the provision of the service.Follow and Subscribe Nyasa TV :