Liberty Life Assurance Company in conjunction with Mcash, a mobile money service of Housing Finance bank, has designed an insurance product targeting low-income earners.
The product is called MyLife:
"The product, so far, offers only cover against accidents but plans for other products are underway," assured Joseph Almeider, the managing director, Liberty Life Assurance Company.
Almeider said all these efforts are geared towards breaking barriers in life assurance, which accounts for only 5% of the annual premiums.
"Following Uganda's accident statistics, 65 deaths are registered per every 100 vehicles involved in road accidents. This makes it one of the highest road accident rates in sub-Saharan Africa, thus making MyLife a much-needed product," said Fred Omach, the minister of state for Finance in charge of General Duties, at the launch.
MyLife mainly targets, but is not limited to, boda boda cyclists and users as they are more prone to accidents.
"Boda bodas account for 42% of all road accidents, hence they need the service," Omach said.
Previously, insurance was a reserve for the affluent but with MyLife, low-income earners will be able to access insurance services for low monthly premiums ranging from Shs 2,500 to Shs 12,500.
"Insurance Regulatory Authority (IRA) kept close tabs on the development of the product. It meets all the legal norms and parameters for market suitability," said George Stephen Okoth, the technical director, IRA.
"MyLife will not only empower society but it will also ensure social security as our services will be to the public from all Mcash agent points countrywide," said, Edith Kuteesa, the managing director, Mcash. Mcash so far boasts of 50,000 clients and 200 outlets countrywide, according to Kuteesa.