In what could turn out to be a great innovation, MTN Uganda has partnered with insurance firms AON and Jubilee to launch MTN LifeCare, a low-cost life insurance policy.
It is probably the lowest- priced life insurance policy on the market and for as low as Shs 7,500 per year, MTN customers and non-customers shall get at least Shs 1 million as pay-out in the event of death.
Subscription to the policy shall be through the MTN mobile money service.
"MTN Uganda continues to lead in innovation by becoming the first company to offer affordable life insurance services paid through mobile money in partnership with AON Uganda and Jubilee Insurance," Ernst Fonternel, MTN's chief marketing officer, said.
To register for the policy, Fonternel said, a customer can simply dial *221# to get insured and then follow the prompts as directed on the phone. Under the policy, there will be three insurance cover options, each with a different pay-out upon death of the insured customer--Silver, Gold and Platinum (see table below).
Fonternel said a customer can only subscribe to one insurance cover per year. For one to qualify to benefit from this policy, he/she must be a registered MTN customer. However, there will also be arrangements for non-MTN customers to register for the policy.
"Life is unpredictable but with MTN LifeCare, MTN customers can count on their mobile money accounts to secure the future of their families in a simple, yet cost effective and reliable way. It's a great addition to the innovative mobile money services already offered by MTN," Fonternel said.
Jeremy Kirkland, the AON director in charge of large clients, welcomed the partnership with MTN. He said the premium would be paid as a one-off lump sum and the cover expires after 12 months upon which the customer can choose to renew it.
Kaddunabbi Lubega, the chief executive officer of the Insurance Regulatory Authority (IRA), the body that regulates the sector, encouraged people to take out this policy.
"I request Ugandans to take on this insurance coverage since ... death doesn't discriminate between the poor and the rich," he said.
Patrick Kimathi, the manager, Life Assurance, at Jubilee, said: "The claims process is very simple. Pay-out cash upon the death of the insured is processed via mobile money within 48 hours upon receipt of the complete claim documents by Jubilee Insurance."
Claim forms shall be got from any MTN service centre or dealer outlet or they can be downloaded from the Jubilee website www.jubileeinsurance.com.
Uganda has one of the lowest insurance penetration rates in the region standing at 0.7 per cent of GDP compared with Tanzania at 0.9 per cent and Kenya at three per cent.
Insurance cover Cost per year (Shs)
Pay-out (Shs) (in case of death)
Silver 7,500 1,000,000
Platinum 22,500 5,000,000