Maputo — Mozambique's largest cell phone company, Mocambique Celular (Mcel), has announced the introduction of an insurance scheme against the loss, damage or theft of cell phones.

According to the chairperson of the Mcel board, Salvador Adriano, the new service results from a partnership between Mcel and the insurance company, Austral Seguros.

"The insurance company guarantees to replace the client's equipment in the event of damage, loss or theft", Adriano said.

Mcel was introducing this new service, he added, "to satisfy a constant concern of our clients. People want the most modern cell phones and equipment that Mcel offers, but they are also worried about the cost of replacing them when they are lost or accidentally damaged. With the insurance, this ceases to be a concern, and the client receives his equipment again for a tenth of its real price".

For his part, Austral chairperson Bernardo Cumaio, said the launch of this service is part of his company's strategic vision to offer innovative forms of insurance coverage which meet the real needs of Mozambicans.

There is, however, a major catch. This insurance is only available to that small minority of Mcel clients who have a contract with Mcel, and pay phone bills every month.

The vast majority of Mcel users buy the pre-paid cards, and are not covered by the insurance scheme.