As published on businesstoday.co.ke on July 9th 2020
Covering 80% of the premium Lifts Burden of Lump sum settlement from policyholders.
In a market where it is mandatory for insurance premiums to be paid upfront, policyholders are often forced to forego pressing needs to meet this requirement, at the expense of immediate business needs or personal financial plans.
For business, it could be paying, rent or salaries or making orders, while individuals could be grappling with school fees or medical expenses. Paying out insurance premiums at once – which can run into hundreds of thousands depending on the policy – can upset finances and even stall business.
No more lump sum
To ease the stress of lump-sum payment, Minet Kenya has launched an insurance premium financing service that allows payment of premium in installments. Insurance Premium Financing is a short-term loan packaged to facilitate the payment of insurance premiums.
Minet Kenya Insurance Premium Financing offers a huge relief to policyholders, especially in these difficult times. Under this arrangement, Minet Kenya enters into an agreement with the underwriter and the insured and pays immediately up to 80% of the insurance premium of the insured, meaning the policyholder deposits only 20% of the premium value to have the cover activated and get insurance certificate within hours.
This product is delivered through a partnership with Momentum Credit Limited, which provides the financing. The premium insurance financing resonates well with private car owners and taxi operators, including tuk-tuk and bodaboda operators.
Under this premium financing, Momentum Credit pays the lumpsum, leaving the policyholder to pay over an agreed period of between one and 11 months.